Home buying thread
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Vinen
God is dead
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Gotta agree. We need a mod to break the thread from when welfare exploitation boy posted until now.
Noodleface
A Mod Real Quick
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ZyyzYzzy
RIP USA
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Need to find more gay retards to have sex with? What noises do they make and are they the best power bottoms due to retard strength?
I'm all settled down with my 5/5 arm. I'm wondering on my additional payment if i should apply it every month or put it into a savings account or investment account and then just apply 1 large payment at the end of the 5 year period. Would there be a difference?
Khane
Got something right about marriage
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I'm no amortization expert, but I think that yes, it would matter. Precisely because of Amortization. I'll defer to the experts on that though.
Vinen
God is dead
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I'm no expert either but I think you'd want to pay it up front.
Think of it like a down-payment.
Asshat Brando
Potato del Grande
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You need to look at your loan documents. Since your ARM is fully amortized more than likely there is no automatic re amortization when you make extra principle payments nor is your lender obligated to do so. You can always ask but they can just say no. Like I said though you need to look at your loan docs as I don't work for PenFed and I don't know for sure.
Making extra principle payments regardless will shorten the lifespan of the loan and save you a ton of money so its a smart thing to do.
Cad
scientia potentia est
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They don't reamortize they just adjust the interest rate. So the payment will go up or down to cover the increased interest over the same term paying off at the same time.
Asshat Brando
Potato del Grande
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No, your loan is amortized from day 1 and the payment just adjust based on your new interest rate regardless of the principle balance. The only loan where re-amortization is common is interest only loans and funnily enough they are gaining in popularity due to the flexibility after being demonized the last couple of years.
"The note holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that i am expected to owe at the change date in full on the maturity date at my new interest rate in substantially equal payment. The result of this calculation will be the new amount of my monthly payment.
Payments the same for 5 years then they recalc based on principal left and 25 years to pay it off at new interest rate sounds to me like.
Payments the same for 5 years then they recalc based on principal left and 25 years to pay it off at new interest rate sounds to me like.
Asshat Brando
Potato del Grande
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That being said. How would two scenarios pan out where I do an additional 200 a month on one and on the other kept it in a savings account. Does the loan interest calculate every month based on the remaining balance so the only difference would be if I could get a higher interest than 2.6 on an investment account?
Asshat Brando
Potato del Grande
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You have a set amortization schedule that only adjusts every 5 years per your loan docs. Whatever you decide to do nothing will change until your interest rate is recast and your loan is re-amortized, your monthly payment during these first 5 years isn't affected whatsoever. You're just making accelerated principle payments, your interest isn't changing nor is the interest your incuring anything different as everything is based on your original principle balance until the loan recasts.
I purchased a new home in October and requested a home warranty from the sellers. They bought a 1yr policy for $390 from HSA. This week my hot water heater was acting up (Its 28yrs old...) I called HSA in the morning and a plumber was here by lunch and said it needs to be replaced. I paid my $100 deductible, they paid for the replacement water heater and the installation. Defiantly satisfied with the outcome.
