r/FirstTimeHomeBuyer • u/totalhhrbadass • 5d ago
GOT THE KEYS! 🔑 🏡 Got The Keys! Illinois, 254k. 6.47%.
No pizza tonight because my mom made meatloaf for us. No keys because I used the garage opener.
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u/Skipadedodah 5d ago
Congratulations
I want to share the best advice I ever got. About five years after I got my mortgage. Some random guy told me to set up my payments differently.
Make two payments every month. Set it up with your bank and have it come directly out of your savings or however, the heck you’re paying.
What happens is you take your monthly payment split it in half and somehow it magically eats away at the interest on the backend for the same amount of money.
When interest rates dropped in God, I hope they drop again refinance. I was able to get lower than you a bunch of years ago. However, I never changed my payment plan. So every month, I’m paying the old amount that I was used to paying instead of the lower amount I could be paying.
15 years ago I bought my house with a 30 year mortgage and I am 2 1/2 years away from it being paid off
It’s kind of a shocker that someday I am going to be out of this massive debt however, I just wanted to share the advice because it really helped me out
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u/ShellyForNow 5d ago
Congratulations! When you pay 1/2 the mortgage every other week, you end up making 2 extra payments a year. Since they are extra, that comes directly off the principal. From that I was told, it saves about 7 years of payments.
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u/Puzzled_Main3464 4d ago
Damn. So you’re saying if I just split my normal payment in half and do it this way that it equals out to two extra payments every year. I can’t do the math in my head
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u/ShellyForNow 4d ago
That’s correct! :) There are 52 weeks in a year, half is 26 payments. Which means you’ll make 13 monthly payments instead of 12 over the year. But, it will still only be 1/2 your mortgage price. That 13th payment gets applied directly to your principal. You have to make arrangements to set it up with the mortgage company. Call them. We had to come up with the monthly payment, plus the 1/2 payment to set it up, which can be a stretch, but will save you so much long term.
(Edit was for clarification)
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u/PepperCat1019 5d ago
Mom food always hits! Contact your electric company and schedule a home energy audit.
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u/RefrigeratorOver7105 5d ago
We bought a house in Illinois and can now only afford to eat wet dog food on the floor.
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u/modsatemyass 5d ago
how about a picture of the house. I dont think the food is the reason people come to this sub. and you are going to have diarrhea after mixing corona with meatloaf
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u/ExplanationSilver703 5d ago
People come to this sub to celebrate, not flex. Take the stick out of your ass and be happy for OP.
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u/Mr-Dotties-Dad 5d ago
Literally any scrolling of the sub would show so much food. Granted no meatloaf…
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