401k vs. Extra Mortgage Principal Payments

[TheHipHopBillGates]

curious to people's opinions on this.......

[Gspot555]

make one extra payment a year to your principal and a 30 year drops to approx. 24 years...better to get that down asap, as if you ever need money to invest, it should theoretically be easier to pull equity from a house rather than a 401k

[berniec]

random thoughts:

-just paying the same monthly amount, but having it deducted biweekly instead of in one monthly payment drops a 30yr down to 24-25 as well too- with no change in payments (because of the compound interest)

-401k money is pre-tax, money paid into the mortgage is taxed

[Benny B]

random thoughts:

-just paying the same monthly amount, but having it deducted biweekly instead of in one monthly payment drops a 30yr down to 24-25 as well too- with no change in payments (because of the compound interest)

-401k money is pre-tax, money paid into the mortgage is taxed

no not because of compound interest its because you are then making 1 full extra payment a year

bi weekly ends up = 13 full month payments / year

[DEEPER KEMICAL]

so what if we make 2-3 extra payments a year, what are we looking at in terms of mortgage length? 20 years?

[TheHipHopBillGates]

random thoughts:

-just paying the same monthly amount, but having it deducted biweekly instead of in one monthly payment drops a 30yr down to 24-25 as well too- with no change in payments (because of the compound interest)

-401k money is pre-tax, money paid into the mortgage is taxed

not if you have a Roth and your gonna pay taxes on it @ some point.


so what if we make 2-3 extra payments a year, what are we looking at in terms of mortgage length? 20 years?

I was told the extra payment brings it down to 21 years. so if you make 2 or 3 I'm sure it would be less then that. I'm actually looking into refinancing to a 15 fixed.

[wizdom]

set up bi monthly payments and also make an extra 50-100 on each payment if you can and your lookin at 20 or better paid off

[TheHipHopBillGates]

set up bi monthly payments and also make an extra 50-100 on each payment if you can and your lookin at 20 or better paid off

I already do the bi monthly payments, and I make an extra principal payment of 5-10k a year, but I still look @ my monthly payment thing and 2/3 of it pays interest and a 1/3 pays principal so what I'm debating is whether or not to invest in a 401k or just use the 10% I'm dumping in that towards extra principal payments, and my ARM resets next Sept so I'm debating switch to a 15yr fixed.

[berniec]

not if you have a Roth and your gonna pay taxes on it @ some point.


well thats a diff situation. i was assuming a reg 401k

[wizdom]

I already do the bi monthly payments, and I make an extra principal payment of 5-10k a year, but I still look @ my monthly payment thing and 2/3 of it pays interest and a 1/3 pays principal so what I'm debating is whether or not to invest in a 401k or just use the 10% I'm dumping in that towards extra principal payments, and my ARM resets next Sept so I'm debating switch to a 15yr fixed.

get rid of the arm regardless and i set up a 401k outside my jobh and throw 10%i nto it just to have something to fall back on

[CraftyVet16]

not if you have a Roth and your gonna pay taxes on it @ some point.



I was told the extra payment brings it down to 21 years. so if you make 2 or 3 I'm sure it would be less then that. I'm actually looking into refinancing to a 15 fixed.

if u can afford to make 2-3 extra payments a year u were probably better off getting a 15 year fixed