Do we pay off some of our mortgage with a large lump sum?
My boyfriend and I own a modular home, and we owe about $105,000 on it...My boyfriend is going to be inheriting $100,000 from his grandfather in a few weeks.....We are young and dont really know our options, but basically he is thinking he wants to put $70,000 into our mortgage, and the rest use on a trip, put some $ down for a new vehicle, buy a few things we need and the rest put away for a rainy day.... First off, is that even possible to put that much into your mortgage at once, and how would you go about that? Secondly, is that a smart way to spend the money, by paying off our house sooner?
Asked By: Holly - 9/27/2007
Best Answer - Chosen by Asker
I would look at it as sort of forced savings. Since it would be a little harder to get the money back out than just a money market account or something. It would also give you a lot of freedom because if something happens to your health or job you would not have to worry about a place to live... More
Answered By: glenn - 9/27/2007
Additional Answers (5)
You need to read the papers you signed for. Sometimes there is a penalty for paying your mortgage off early. But paying it off early will save you interest payments. When you make an overpayment or an unscheduled payment make sure it is noted that the payment is going towards the principal. Otherwise your payment will... More
Answered By: haileygirldb2002 - 9/27/2007
The more of your principal balance you knock off up front, the more money you'll save in interest charges in the long term. I imagine that it depends on the terms of your loan so be sure to check all that paperwork, but I *think* under most circumstances, they can't penalize you for early payment... More
Answered By: Dan of Toasters - 9/27/2007
Talk to your mortgage holder and see if you have a principle only payment option on your mortgage or early pay off penalty... More
Answered By: Wizard Of OS - 9/27/2007
First thing to do before you decide on where to spend the money is to talk to a CPA to figure out what your tax impact may be. Then sit down an list out any debts you have at this time and the interest rates you are paying on each item (credid cards, car loans, personal loans, student loans, mortgage). First thing to... More
Answered By: Cisco - 9/27/2007
Call your mortgage company and verify if your have prepayment penaltys. Also, with paying such a large amount you will save on interest. You may qualify for a recast or reamortization. Where they will recalculate your payment over the remaining term based on the lower balance. Your payments will be lowered as well... More
Answered By: Gene and Allum - 9/27/2007
$21/hr Start, Avg Pay $72K/yr Check Our Map of the 1700 Openings.
New job opportunities added daily. Search & apply for DC jobs now.
Click. Search. Apply. Free!
Get College Degree Online Faster than you Think. Financial Aid Options
Other Career Questions
What jobs are there in the business field that are night jobs? Places and job titles please. Im have a BA in Business Admin and looking for a night job, already have a morning/day job.
Enumerate these jobs Say, patent application writting. patent application writing. In a company, what jobs are needed to keep confidential?
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.