Lizy, I saw your live the other day. How does the extra payment for the first mortgage payment fit in to this? for example, if my mortgage was $1800 and I put $3600 as my very first payment and then I put in another 5K at the end of the year? Also, is it better one big payment at the end of the year or a little extra each month (that would equal a big payment at the end of the year)? Thank you Lizy.
Hola from Jersey Queen Lizy! I'm here from a live you did off of Javiers Channel. I'm binge watching and making my husband binge watch both channels as we want to move into our first home by December 2021. Is there a such thing as being penalized for putting more money towards your principle? My husband gets huge checks sometimes from teaching children in various non profit programs and I would like to do tip #4.
If I want to make principle payments to my mortgage on a monthly basis, is there a benefit to saving the payments through the year and making one large payment at the beginning of the year. You said about that but I wasn’t really how I would more money. Thank you
You can get a 30 year mortgage and treat it like a 15 and not be forced to have a huge payment. More of your money is demanded by the bank and bound by contract. If you miss a payment youre going to suffer penalties and maybe foreclosure. If you get a 30 year you can pay more to principal at your leisure and maintain flexibility. However a HELOC in first or second lien position allows you to treat your mortgage like a checking account and ALL your income is applied to principal and the significant savings in interest is immediate and useable extra income in your wallet. Getting a 30 year or 15 year mortgage has NO virtue in savings because the payments are fixed and there is NO LIQUIDITY. A HELOC will always out perform even in a raising rate environment. The EFFECTIVE interest rate using a HELOC is lower than the actual interest rate because of the rapid deceleration in principal and the compounding savings taking place in the practice of deposting income into the mortgage. You get DUAL USE of your money. Principal reduction and bill paying ability. There is NO virtue in a fixed rate and payment loan.
Lizy, I saw your live the other day. How does the extra payment for the first mortgage payment fit in to this? for example, if my mortgage was $1800 and I put $3600 as my very first payment and then I put in another 5K at the end of the year?
Also, is it better one big payment at the end of the year or a little extra each month (that would equal a big payment at the end of the year)?
Thank you Lizy.
Watching from Philadelphia,pa. I'm abt to close a home in Delaware next month.
Hola from Jersey Queen Lizy! I'm here from a live you did off of Javiers Channel. I'm binge watching and making my husband binge watch both channels as we want to move into our first home by December 2021. Is there a such thing as being penalized for putting more money towards your principle? My husband gets huge checks sometimes from teaching children in various non profit programs and I would like to do tip #4.
Good advice.
Glad it was helpful!
Love what you're doing for the Velocity Banking Community. Keep it up!
If I want to make principle payments to my mortgage on a monthly basis, is there a benefit to saving the payments through the year and making one large payment at the beginning of the year. You said about that but I wasn’t really how I would more money. Thank you
Thank you for sharing your knowledge 🥰
You can get a 30 year mortgage and treat it like a 15 and not be forced to have a huge payment. More of your money is demanded by the bank and bound by contract. If you miss a payment youre going to suffer penalties and maybe foreclosure. If you get a 30 year you can pay more to principal at your leisure and maintain flexibility. However a HELOC in first or second lien position allows you to treat your mortgage like a checking account and ALL your income is applied to principal and the significant savings in interest is immediate and useable extra income in your wallet.
Getting a 30 year or 15 year mortgage has NO virtue in savings because the payments are fixed and there is NO LIQUIDITY. A HELOC will always out perform even in a raising rate environment.
The EFFECTIVE interest rate using a HELOC is lower than the actual interest rate because of the rapid deceleration in principal and the compounding savings taking place in the practice of deposting income into the mortgage. You get DUAL USE of your money. Principal reduction and bill paying ability. There is NO virtue in a fixed rate and payment loan.
Watching from Sedona, Arizona 🇺🇲
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Thank you for the info. It was very helpful!
So happy to help! Let me know if you have any questions
I do all these except the refi :-) Great stuff!
That is awesome!!! So happy to hear that and thank you for tuning in!
Great video 👍👍👍
Thank you so much! Means a lot that you tune in!