Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Scott Benton

Scott Benton has started 3 posts and replied 61 times.

@Josh Kindrat

When I did my recasting, I was not able to change the duration of the loan. The amortization schedule remained the same, but since I had paid down some of the principal amount, I was able to recast THAT portion of the loan and the overall payment went down. I do not know the laws in Canada, but from a US perspective, what you are describing sounds more like a refi to me than it does a recast. I was not interested in restarting the payment clock from, say, 20 years back to 30 with a refi and why I chose to recast instead. With a recast there was no fee included, and with a refi, I would have had to pay a few thousand dollars to complete. I would assume Canada would be the same. Paying a few thousand dollars for a refi does bring the payment down, but then in theory it would take several months if not years to make up for the amount you had to pay for the new refinanced loan. 

On the other hand, if you are only interested in having a lower payment and happen to have a few extra thousand dollars to complete the refi, then maybe it's worth it. I have done that in the past myself, but I did it before I understood the recast option. Once I figured out recasting, I found I preferred that instead and focussed on a debt snowball payoff strategy instead of refinancing. 

Not sure if that helps your situation or helps inform your thinking about it, but I hope it does. Also, again, I don't know Canadian banking, but I would check with your bank to see if your country offers the same recasting option that the US offers. I would assume they do, but I don't know for sure if that is the case. It might not be possible there. 

@Ben Yoder

It was very helpful for me and hope it does the same for you as well. 

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@Steve Morris — If return is what you are interested in, then anything is better including paying down your debt. As I mentioned, I was not interested in return. I took that priority completely out of the equation altogether for my experiment to see what other benefits I would find that did not include return. For what it’s worth, I posted another article input together about recasting which is pre-paying your principal and the re-amortizing your loan for free to lower your monthly payments which I quite liked but many people also pushed back on. I’m Dave Ramsey terms, recasting could be looked at as a mortgage debt snowball that helps you pay off your mortgage much faster or at least lowering the payments so the out refinancing. I have found that process to be very helpful.

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@Jay Hinrichs — I see where you got confused. In the first paragraph I say I accidentally made a second payment. In the second paragraph I say I could easily fix that by not making a payment the next month to catch up. In the third paragraph I say I decided ultimately NOT to skip a payment the next month but to always instead keep myself one month ahead of my payments from that point forward and found there were many benefits to having made that first blunder I didn’t expect and why I continued on with my experiment to see how far I could take it and then wrote the article.

I also had answered your question about whether the banks would have a problem with not making a payment one month when you were already ahead of schedule previously in the comments (someone else had posed the same concern you did), which I can understand you may have also missed if you’re scanning through them or not reading the comments at all, something I also frequently do.

As you are clearly an extremely intelligent person who I respect from what you describe of yourself and know you would never do anything you read in a post from someone you don’t know without first verifying the accuracy of the statements or that the same applies to you in your own personal situation, I also have faith that others who are reading my post similarly are as intelligent as you are if not more so, and who definitely more more intelligent than me, and additionally who I respect and would like to learn from. At the very least, trust and verify is how I would approach acting on some idea I’m reading about.

One thing I know I like to keep in mind as well when I’m skeptical about something is an Abraham Lincoln quote I go back to and remind myself of which is, “When you look for the bad in mankind, expecting to find it, you surly will.”

But mostly I tend to stick to trust and verify. You are definitely quite wise to do the same as I can tell you are and do.

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@Jay Hinrichs — For me it wasn't true. I called the bank to make sure I could do what I wanted to do and they gave me the greenlight. There was never any change to my credit score.

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@Mike Solak — That’s great. I’m doing a little of the same myself but trying to figure out the next move and really like the idea of house hacking. I like households with a lot of people in them and might want to find something I live in with a few bedrooms that I can rent out. I’m still trying to understand the direction to go and with everything so confusing and uncertain right now, it will be a while before I know what makes sense and may need to do something anyway even if it doesn’t make sense. I think a lot of real estate investing is like that anyway. You find ways to make it work. Let’s hope you get there soon with your next project or acquisition.

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@Matt M. — Congratulations on paying off your mortgage! That's awesome. I also used to have a lot of trouble with reading and in fact was far below average all the way through college. To be specific, I was at 174wpm when the average is 240wpm (1 word per quarter second). I also had very little recall and recognition which meant that when I got through a book, I didn't know what I read. To solve that dramatic deficit, I picked up the Evelyn Wood Reading Program from Nightingale-Conant which I noticed is not there any longer, but they do offer another speed reading program which I'm sure is just as good and that you can find here. It took me about two or three months to get through all of the lessons, but by the time I was done, I had gone from 174wpm to 1,750wpm, learned an enormous amount about reading in general, and had made significant gains in my recall and recognition ability. I cannot recommend studying speed reading enough and myself would like to repeat another course and do it again. I don't speed read any longer, but the skills I learned have stuck with me, and I am able to read several books every year which I notice has made a world of difference. Last year I read 70 non-fiction books, and this year I'm on track to clear 50. Another significant source of information came from a book I found that was written (I think) in 1941 by Mortimer J. Adler and Charles Van Doren called HOW TO READ A BOOK. While there were entire chapters that I could barely follow because of how dense they were (this is not a remedial read by a long shot), I cannot think of anything that has improved my ability to read more than this book has. The first time I read it, I immediately put it down, got in my car and drove to Barnes & Noble, bought HAMLET, read it through, and understood it. The Adler/Van Doren book argues that the most difficult form of reading you can do is poetry, a format they urge you to master. Going further, they say the most difficult form of poetry to read is Shakespeare, and the more you read it, they say, the better and sharper your reading skills become. I completely agree that they were correct in both of those assertions and have gone on to read the book two more times with each time improving my reading abilities once again. In fact, I will be happy to read it once more in a couple of years because of the benefits I have realized each time through. By the way, if you don't know who Charles Van Doren is (you might recognize the name somewhere in the back of your mind), he was the academic portrayed by Ralph Feinnes in the film QUIZSHOW about the 1950s gameshow scandal where they were giving Charles Van Doren the answers to the questions they asked him while he was in the isolation booth. It's a pretty interesting story if you don't know about it. With those two excellent tools—speed reading and HOW TO READ A BOOK—I would say that you will more than improve your ability to read whatever level you are at right now, and in fact reading will probably become the activity that you most enjoy as it has become for me. Finally, in HOW TO READ A BOOK, they talk about something called "synoptical reading," which is a process where you read several books on the same topic, such as ten or more, let's say. When you do this, as they explain, your brain starts to make connections to all of the different books that are not actually written or found in any of the books. They claim it's the highest form of reading you can do, and something I've tried on several topics, a skill I have found incredibly useful and even more important that the speed at which you read, something I haven't prioritized in a long time and why I'm not at 1,750wpm any longer (I also don't like to pace which is where you fly your finger across the lines of text like the Matt Damon character does in GOOD WILL HUNTING, which if that were real, it is what reading at 5,000wpm looks like. It's a kind of place you can only get to once you've read several books on the same topic, and as it's argued that it's a place where you can find your true original genius. 

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@JD Martin — You have your properties nicely structured. Very inspirational. I like the thoughts you outline. The original YOUR MONEY OR YOUR LIFE made a big impact on me as well. In fact, the audiobook version that went along with that book at the time I found even more impactful if you leave out the bond structuring he talks about and instead substitute property or other cash flowing investments. That recording is called TRANSFORMING YOUR RELATIONSHIP WITH MONEY. Not sure how outdated it is now, but I would listen to it again, no problem. 

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@Michael P. — I do not remember. It was probably at 5.25% at the time is my guess. 

Post: Mortgage Hacking: Why I Paid My Mortgage Six Months in Advance

Scott BentonPosted
  • Investor
  • Los Angeles, CA
  • Posts 61
  • Votes 74

@Rich S. — I cannot thank you enough for this response. I know there are as many points of view as there are people in this world, and I am so lucky to be surrounded by so much passion and deep thought when it comes to trying to figure out how to navigate life in so many of its impossible complexities and from those I do not personally know.