I am debt free! - Page 3 - Ford Transit USA Forum
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post #21 of 27 (permalink) Old 10-13-2016, 08:21:AM
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We payed off our 30 in 15- it was truly astounding how much that saved us- don't recall exactly but it was 100 grand plus!
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post #22 of 27 (permalink) Old 10-13-2016, 01:42:PM
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Originally Posted by Budsky View Post
We payed off our 30 in 15- it was truly astounding how much that saved us- don't recall exactly but it was 100 grand plus!
That's rad. if you don't mind me asking, how many extra payments per year did you have to make? sometimes i think I should add quarterly installments equivalent to 2 payments, then each year i would be making eight additional payments. trying to pay it off quickly is such daunting task. Man!

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post #23 of 27 (permalink) Old 10-13-2016, 09:22:PM
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From what I know if you can get the mortgage company to accept bi monthly payments (half payment every two weeks) it will cut your interest immensely. You might also have to make a full extra payment, rather than just the principle. Here in FL you can generally make any size extra payment BUT YOU MUST MARK it to go to principle. Suze Orman stated that making just ONE payment extra per will cut your mortgage by years...

But here's a sampling of a good way (be sure to have your credit cards and anything with higher interest paid off first!)

""If you have a $150,000 home loan, financed at 6% for 30 years, your monthly payment would be $899.33. Using the early mortgage payoff calculator, we can see that if you added just $67.13 per month to your house payment (roughly the cost of a designer cup of coffee per work day), you could pay off your home loan in 25 years and save $33,821.65 in interest charges in the process. Just imagine what would happen if cut out buying all forms of flavored water and applied those savings to paying off your debts as well? "" http://www.free-online-calculator-us...alculator.html
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post #24 of 27 (permalink) Old 10-13-2016, 09:40:PM
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The "trick" to the every-two-weeks half-payments is that it isn't actually "bi-monthly". There are 52 weeks in a year, every two weeks means 26 half-payments - or 13 full payments per year! By conditioning yourself to pay every two weeks you're building in the extra payment, a nifty trick.


I'm getting a kick out of paying on the Transit. My credit union has a nice web interface to manage my accounts, including pay on the loan whenever I want. It also tells me when the next payment is due. Right now I'm up to Feb 2019!
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post #25 of 27 (permalink) Old 11-02-2016, 04:19:AM
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Congratulation
It's really awesome...


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post #26 of 27 (permalink) Old 11-02-2016, 10:15:PM
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I thought the point of the bi-monthly payment is because once the first payment is made that month's interest stops accruing for the rest of the month. Thus making the next payment all principal.
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post #27 of 27 (permalink) Old 11-03-2016, 07:27:PM
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For simple-interest loans, the interest is applied daily to whatever balance is currently outstanding. (If your APR is 5% then you'd have a daily rate of roughly 0.014%.) If you make a payment mid-month then the total interest paid for that month would be reduced slightly because you have reduced the outstanding balance for the last half of the month, but it isn't substantial.

With the every-two-weeks payment plan (which many call "bi-monthly" because most months have ~roughly~ 4 weeks) you actually make 26 half-payments per year - or 13 full payments - since there are 52 weeks in a year. Not only do you get the small reduction in interest due to the more frequent payments, you get a far more substantial reduction because the 13th full payment is effectively all principal.

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