need to understand how finance calculation work
We want to buy a fifth wheel, and we need to trade a travel trailer that has no equity. Is there a step i can follow so i dont get taken advantage of or tricked into a bad deal?
Forum Discussion
smkettner wrote:lj2654 wrote:18 more years... longer if you refi longer and bigger, shorter if you send an extra $100 or more each month. I suggest sending extra money even if it is just $10 to start.
Well many of us are upside down on home mortgages because of the bank and mortgage companies greediness a few years ago. I have lived in my home for 12 years and am still upside down and will never have equity in it.
X2!
It is NEVER too late to pay extra against the principle.
Use the Amortization calculator that I posted a link to, plug in your numbers then plug in $10, $20, $50, $100 extra towards the principle and recalculate.
Paying extra on the principle is a great way of REDUCING your negative equity not to mention reducing the amount of years remaining until you pay it off.
One note.. If you do decide to pay extra, you MUST INDICATE how the extra funds are to be applied. The bank AUTOMATICALLY ASSUMES it is a extra REGULAR P&I payment which is not the same effect as paying directly towards the PRINCIPLE OWED.
