All Forum Posts by: Tom Hall

I would like to know the prons and cons of paying off the mortgage faster to be honest i do hate the fact that my mortgage rate is high almost 7%.  

I would like to have lower monthly payments should I make a big lump sum payment towards my principals and ask my mortgage company to adjust it or refinance it or which one is the best ? 

or why i shouldnt be making a big payment towards my principals to lower my monthly payments? 
Also, is there any predection for mortgage rates going down?

So my question might seem simple or even stupid to some people, nut we all have to start at some point. 

I do have some cash saved up enought for a down payment, and i would like to buy a property to flip and make money, I KNOW IT IS NOT EASY, especially for someone who has never done it. 

My question is to people who has flipped houses or know how it works, assuiming I get a house that needs some work in order to make money and resell i have to renovate it nicely but I dont have any skills nor knowledge how to do remodel and I would have to get contractors to do it for me and they are not cheap at that point i would get contractors to do everything and will i make any profit after selling the hosue? 

How do u guys do the flip u do everything urself >? considering i dont know much would it make any sense for me to do it even ?

Quote from @Theresa Harris:

Adding extra to the payments will shorten the length of the mortgage and how much you pay in interest.  What are your long term goals (eg do you want to buy another house) and do you have a large savings set aside for unexpected expenses?  Look at your interest rates and do the math and then ask yourself if you put that money into another investment, would you make more or less money than you would paying down your mortgage?

Most investors let the tenants pay down the mortgage and use extra money for their down payment on their next rental.  

Yes true, but i dont want to invest into more houses for many reasons, in the state of NJ/NY and many more states tenants can get away with years of not paying rent, also they trash the house not all tenants  but some do. At that point I dont know investing would make any sense, I have heard scary stories I was thinking about short term rentals but that needs constant cleaning after guests and conpetition is very high my friend spent almost 200k out of pockets to buy a property for airbnb and he got 17 bookings per year.... So really confused 

Quote from @Greg Scott:

What is your interest rate on your mortgage?

If you know how to make rates of return higher than that, I would say it is better to invest the money than pay down your mortgage early.

If you don't know how to do that, then either pay down your mortgage or learn how to improve your investment returns.

 My. Ur rent mortgage rate is 6.75 and I have been paying mortgage for like 7-8 months. Investing always looks scary I don’t wanna lose money. 
my monthly payments are 3k including taxes I am in NJ so property taxes on an acarage house is still high 

My mortgage rate is very high  and I would like to pay some of it off, so that my monthly payments would go down a bit, I dont know if it is financial smart to do it or not? any advice on paying mortgage off or faster 

Quote from @Mark F.:

Quote from @Michael Brattelli:

@Tom Hall Values in NJ certainly aren’t going down right now. There’s a huge shortage of inventory. What town or area is it in?

it is in Middlesex County, yes i have been looking for a house for the past 6 months and none of my offers were accepted i got outbid many times and even for this property I got outbid but i was the second highest bidder so they contacted me to get it. 


This. You must be in south or central NJ. Paying over ask is basically standard here. So where are you? PS I'd live across or next to a cemetery in a heart beat. Quiet neighbors.

Quote from @Michael Brattelli:

@Tom Hall Values in NJ certainly aren’t going down right now. There’s a huge shortage of inventory. What town or area is it in?

 Hows the market in NJ now? the house i bought is located in Middlesex County

Quote from @Shawn Mcenteer:

Hi @Tom Hall what type of home is it;  multi, single?   Where is home located? Is there room to renovate/did you renovate?

 hi Shawn it is located in NJ  Middlesex County. Single family but has finished basement, with its own entrance!

Recently I purchased a house did overpay 60K my offer was the second highest offer seller didnt accept that but they called me back after a month since the first offer didnt go thru, I gladly moved forwad and recently moved in however I dont like the house at all it is accross the cemetary I dont feel homy there a bit house is nice but I simply i dont love it! I am looking into option what can i do at this point selling I dont think anyone would pay me this much since the value of the houses are slighly going down in NJ. what would be my options at this point? 

Soon closing on a property property cost $458k and the closing cost is really high we are doing FHA mortgage they are charging 2% of the loan plus application fee and mortgage insurance on closing for the amount of $7k and plus monthly mortgage insurance... in 2020 there was not just a thing 2% of the loan on mortgage origination loan fee!

Now total closing cost is 26k and my closing is soon, i am just feeling uneasy about this? is this normal for todays market? can someone give me some clarity ?