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I owe 50k thousand on a 5.375% mortgage payoff is 2019. I would like to pay it off. What is the best way to do this.

by statenneil502 from , California. Jan 11th 2014 Reply


Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions

With such a short amount of remaining time, I'd suggest simply making bigger payments. Refinancing to obtain a lower rate might be worthwhile... for example take out a 5/1 ARM to get a rate of around 3.50%... then calculating what payments would be needed to pay off in 5-years or less. You need to factor in closing costs too... which is where the issues of cost vs benefit comes in, and why I suggest simply making bigger payments on the existing loan.

Jan 11th 2014
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Blake Kleckner (BlakeK)
#391 ranked lender in California - 261 contributions

If you can afford to make more than the regular payment, you should do so. Any extra will go directly to reducing the principle. It is conceivable, however, with the same monthly payment to pay your loan off in less than 5 years. To determine this, more info is needed. What was your original loan amount and what is your current payment? With this info I can give you some viable alternatives.

Jan 12th 2014
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