The Next Big Bailout?

[Star_Cards]

In a practical sense, you're right, a house is definitely an asset. But from a financial planning standpoint, until you've paid it off (or are close to doing so), we have to treat it as a liability. You can borrow against your house if you absolutely need to (I'm not talking about refinancing, which a lot of people have done due to the drastic interest rate drop), but otherwise it's tough to recommend.

In case you couldn't tell, I'm a very debt-averse person. I overpay on my student loans every month (usually not by a whole lot, but still), and I plan to put at least a 20-25% down on my house, when I buy it.

that's a great behavior to get into. I always over pay on my house and had 20% down. That will save you some PMI payments too.

[duane1969]

So how do you deal with a mortgage company that won't let you do that? My mortgage company sends me an invoice every month. If I overpay one month they just deduct it from the next month's invoice and won't apply it to my balance.

[pghin08]

So how do you deal with a mortgage company that won't let you do that? My mortgage company sends me an invoice every month. If I overpay one month they just deduct it from the next month's invoice and won't apply it to my balance.

If you decide to do that, maybe you could call them. I'm sure there is some way that could apply that overpayment to your principal balance.

[duane1969]

If you decide to do that, maybe you could call them. I'm sure there is some way that could apply that overpayment to your principal balance.

Nope. The first time I overpaid and they applied it to the next month's invoice I called. They said that they do not accept premium only payments and would apply any overpayment to my next payment. In essence, they are protecting their bottom line by ensuring they can get the entire interest on the loan.

[tutall]

I believe it's 10 years, but I'm not 100% sure. I'm not sure how she was able to do that, but honestly, I'm not a bankruptcy lawyer, so I'm just not knowledgeable enough on the subject. If she has a financial advisor, he needs to be fired though.

I'm far too young to adequately say that it's the best housing market to buy in decades, I just know that it's a good one.

A BK will stay on record 10 years but many institutions will lend money as long as you have not included one of their debts in the BK in as short as 6 months... Generally you will be tier 3 or lower meaning higher rates/payments but it is definently possible.

[tutall]

Nope. The first time I overpaid and they applied it to the next month's invoice I called. They said that they do not accept premium only payments and would apply any overpayment to my next payment. In essence, they are protecting their bottom line by ensuring they can get the entire interest on the loan.

You need to look into refinancing then. I take payments everyday and encourage overpayment. I personally recommend at minimum dividing your payment in 12ths and make the additional payment each month... I also recommend on all new mortgages to start bi-weekly payments as soon as your loan is booked as it will pay off for you huge in the long run