“Should I Continue to Prepay my Mortgage?”

“Should I Continue to Prepay my Mortgage?”

 

 

 

 

 

 

I guess maybe with the economy not looking so hot and Fed trying to keep rates low for a long time, I guess that rates may stay low for a while so no panic on refinancing. Hopefully in a few months my credit will get to where it needs to be.

Question for you, should I keep paying some of the principal down a bit each month?  I had been doing an extra $2,500 each month.  I seem to have so much money accumulating in my bank (I think 12 months + accumulating for taxes).

 

 

 

Most times I would not recommend prepaying a mortgage, especially when current rates are in the 2% & 3% range. But when the client’s current rate is in the 6’s, prepaying the current mortgage makes perfect sense.

 

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 3 commentsJoe Petrowsky • October 23 2020 02:53PM

Comments

Thanks for sharing Joe!

Most times I would not recommend prepaying a mortgage, especially when current rates are in the 2% & 3% range. But when the client’s current rate is in the 6’s, prepaying the current mortgage makes perfect sense.

Posted by Sham Reddy CRS, CRS (H E R Realty, Dayton, OH) 25 days ago

Good morning Joe. I am in agreement with your advice. Pay down a higher rate if you cannot refinance. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 25 days ago

Good morning Joe. I actually pay down my mortgage regularly just to take advantage of compounding interest. It's like having a 20 year note when only qualifying for a 30 year note.

Posted by Rocky Dickerson, Superior Service! (Realty One Group) 25 days ago

Participate