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Need Some Brain Power

Discussion in 'The Powder Keg' started by TNPIRATE, Oct 11, 2017.

  1. Cyrano

    Cyrano Resident Curmudgeon Forum Contributor

    New York
    So go back to ncnascarlady's fallback plan. Pay the monthly payment on one check, and a second check to be applied directly to the principle, and noted on the remarks line as such. Make the second check whatever you can afford each month. Even if it is only $100, over the course of a year that extra hundred bucks a month would trim almost three monthly payments off the repayment schedule.

    You might not make your one year goal, but cutting down the number of payments would help.

    TNPIRATE Yo Ho Ho And A Bottle Of Rum Forum Contributor

    Well spinnin this in my head and just taking the calculator and putting in an amount that I can afford. Then multiplying by 12, I think I may have figured a way to get it down to 15 months with a last and final payment of 15 bucks. Wait, spin somepin else.
    If I were to up my payment to 512.68x15=7,690.20 that would be at the end of the 15 month an over payment of 14.71.
    It doesn't have to be an exact 12 months. It would be nice but with income, and an imperfect world, the 12 month or instant payoff, ain't gonna happen unless I win the lottery. With life I have to look at what and WHO (me) I'm dealing with.

    When it comes to the lottery and luck, I have a record of winning the lottery every 10 years, and that has held steady 3 times so far of 50 bucks each time on scratch offs:confused: I'm about due:cool:

    Forget Vegas and the penny slots. I came this close to winning 19 million pennies, one time and one time only:D It was Evil Knievel's fault. It was one of his penny slots. I made 2 successful jumps and Evil is in the background callin me a sissy, and a coward, and tellin me I couldn't make the jump. I had to twist that throttle, uumm I mean push that button:D And 19 million pennies went by by, right then and there. When you're 2 deep, and feeling froggy ya gotta jump:D It only cost me 100 pennies to almost win the 19 million pennies:D

    What makes it, and this, difficult is that you never see the interest drop off. It is dropping but only 2 bucks or so a month. So the interest is gonna be with you until the end. As far as the house note goes. There is no penalty for early payoff, or paying more in the way of the payment. As for the 8% interest that was pretty good for me at the time I purchased the house. When I bought this house (with no credit) it was right after the GREAT obozo housing market crash. And mortgage companies were not jumping in to loan money on a home. They were running scared. Here we are 6 years later and the same thing is happening again. You don't think so, just look at the price of houses in California. That bubble can't last forever.

    I made every payment on this house. Some were while I was driving a truck. I would tuck a post card in the envelope from where ever the payment was being mailed from and mail it off. Only one time I was late on the payment from the truck, and that was because I was running behind and trying to get as many runs as I could before the week ended. Here we go back to the logs and fudging again:D
    And one time late by a couple days because it was the short month of February and I thought I had a couple more days in the month. This payment was mailed from the house.

    And I was looking at the papers that I posted on here. They say my first payment was due on 11-01-2011. Strange, because I stopped driving in June of 2011. Now my mind ain't so far gone that I do not remember making payments while on the truck. And before I purchased the house I was renting an apartment in Winchester. I got out of that and lost my deposit because I broke the contract 1 month early, Feb-2010. Oh yeah gotta look into that. The house just might be paid off due to a glitch:D But again I know how my luck goes:eek:

    Anyhow I'm gonna get this figured out. I will post the reason for the rush in another thread. That thread may take me a minute to get to, but it will get there.
    neophyte and ncnascarlady like this.

  3. M14man

    M14man I don't take prisoners... Forum Contributor

    I am lost as to where the $7690 came from. When your balance is $8057 (Jan 1) it will take $566.79 to pay it off in 15 months. It would be $533 for 16 months.
    Remember there is an interest charge that gets added each month. That $512 payment appears to leave out interest of about $400 that would accrue in the year you are making payments. You could pay $503 and finish about the 15 month mark. (bal $8057)
    Last edited: Oct 12, 2017

    TNPIRATE Yo Ho Ho And A Bottle Of Rum Forum Contributor

    The way I did that was in Jan-1-2018 my payoff would be 7,675.49. Now what I calculated was 512.68x15=7,690.20. That means at the end of the 15th month I would have paid 7,690.20 which would be an over payment of 14.71.
    From what I am seeing and understanding on this paperwork is that the interest has already been calculated into the payment. At least that is the way I am understanding it.
  5. Yup, you understand it correctly. That's why you pay any extra to the principle only. The faster you get your principle down, the less interest they can charge you.

    One of my reenactor buddies is a banking and finance wiz, and he taught me that trick. He pays $100 over his monthly car payment, indicating on the check that it's to go to the principle ONLY. In a year, he's shaved off 2 payments. At the final payoff point, he actually pays it off 10 months early and saves a ton on the interest.
    TNPIRATE and neophyte like this.
  6. M14man

    M14man I don't take prisoners... Forum Contributor

    That $7675 is after you make your Nov, Dec, and Jan payment. Thats 3 payments right there and then you figured 15 more. That is 18 payments...They tell you what interest is that is why amount applied reflects the interest subtracted from payment.Thus when you have a $8057 balance they add the interest for that month. That is why your $435 is not going fully towads the pricipal.
    That balance shown for each month is the PAYOFF amount. That amount then has interest added to it the next month. Thus when you have $7675 owed you will pay an interst charge for each month as the balance lessons.
    TNPIRATE likes this.

    TNPIRATE Yo Ho Ho And A Bottle Of Rum Forum Contributor

    Do you see why I said I needed brain power.
    M14man likes this.

    TNPIRATE Yo Ho Ho And A Bottle Of Rum Forum Contributor

    Since the original payments started at 335.68 and 2 years ago I started paying 435.28 wouldn't that do the same thing? Or if I made 2 checks out one for 435.68 and write principle, and then on the second check make that out for the interest only, and write interest on the check. What would that do? Maybe one of two things. Either screw them up beyond repair, or put the whole ball of wax in my favor.
    Remember a snafu is easy to get out of, but a FUBAR is gonna take ya a few days or longer:D
    ncnascarlady and PAPA G like this.
  9. M14man

    M14man I don't take prisoners... Forum Contributor

    annoy them and they may "lose" your payment.
    Ten Man and PAPA G like this.
  10. Ten Man

    Ten Man G&G Evangelist

  11. Make your base payment of $335, then pay the extra $100 in a separate check with Apply to Principle ONLY in the message line. That way they can't say you're not making your monthly payment (and you know they'll try!) and try to screw you out of your house.

    TNPIRATE Yo Ho Ho And A Bottle Of Rum Forum Contributor

    OH YEAH, you're really tryin to fry my noodle:D
    ncnascarlady likes this.

    TNPIRATE Yo Ho Ho And A Bottle Of Rum Forum Contributor

    I don't think they'll try and screw me. It's just I want out from under the payment. The papers that I posted I get them at my request. I have gotten about 3 so far. The first 2 were with the 335.68 payment calculations, and this latest one with the 435.68 payment. They have carried it over to show from the 335.68 payment, and then 2 years ago started showing the 435.68 payment.
    ncnascarlady likes this.
  14. Wicked109

    Wicked109 G&G Evangelist

    You are doing the wise thing to get your home paid off as quick as possible. The $733 does not factor in property tax and insurance. So, unless you have more available funds, factor in those amounts and if you have to decrease your monthly payment a bit to cover those items, do so but continue on with paying on time and it will get paid off very soon.
    Ten Man and TNPIRATE like this.
  15. Palladin8

    Palladin8 G&G Evangelist

    Are you able to split your monthly payment in two? If they are compounding your interest monthly, making two payments a month would decrease the principal amount and shorten your loan time. People do this all the time with 30 year fixed loans and are able to pay off their loans in 15 to 20 years rather than the full 30 year term.
    TNPIRATE and ncnascarlady like this.

    TNPIRATE Yo Ho Ho And A Bottle Of Rum Forum Contributor

    Remember I started this thread about paperwork I received from the people holding the note on my house. Well I noticed something strange about it. I know I started making payments in 2010. But the pics of the paperwork I posted here say the date of my first payment is 11/01/2011. I says something ain't right, I was on the truck and I would tuck in a postcard with the payment from where I was at mailing the payment from. Don't ask me why I tucked in a postcard. Just trying to brighten someone life up.
    Well still thinking something is wrong I got in the wayback machine and made a phone call to the bank I was dealing with when my first payments on the house were made. I was still using the old bank in California. OH CRAP, they changed owners this past July. Ok this might be a problem. With all my moving around I lost a lot of paperwork. Well I made the call and spoke with the same branch that handled my account in 2010. It just so happens they were able to pull up canceled checks. The farthest they could go back and pull up was July/01/2010. The sweet little gal was able to pull up July, August, and September. Could probably pull up more.
    So what this is telling me is that there was a mistake made on the paperwork I was sent when the first payment was made. So I just might owe less on the house than what was thought. Could be less than a year that I owe on it.

    The little gal in California is sending copies of the canceled checks for July, August, and September.

    One more note. The date the paperwork was written up with my folks signing for me under power of attorney, and my folks signature. All dates show 2009.
    So if all that paperwork was signed in 2009, then why would my first payment be 10/01/2011? I don't think that they would sit on someone purchasing/signing for a home in 2009 and not making a payment until 2011.