Is the short-term home loan available?

[compiler]

What is the name of your state?GA
I would like to put a large amount of down payments to buy a new home and loan only $50,000-100,000 in the term of 3-5 years because of interest saving and fast equity increasing. However, I am told by my bank the shortest home mortgage is at least 10 years. Does anyone know there is a good short term of the home loan in the market? I also hope to take advantage of the tax deductible of the home loan. Thanks.

[HUD-1]

If you get a 10 or 15 year loan, just make sure you can partially prepay it. Every month, you can pay additional principal payments and pay it off early.

[compiler]

Can you explain * you can pay additional principal payments and pay it off early. * Basically, I want to save the interest. The interest of loan $100,000 in 5 years should be less than the same amount in 10 years. If I have to loan $100,000 in 10 years but want to pay the same interest in 5 years, how shall I do assuming the mortgage rate is 5%?

[jnazareno]

Originally Posted by compiler

What is the name of your state?GA
I would like to put a large amount of down payments to buy a new home and loan only $50,000-100,000 in the term of 3-5 years because of interest saving and fast equity increasing. However, I am told by my bank the shortest home mortgage is at least 10 years. Does anyone know there is a good short term of the home loan in the market? I also hope to take advantage of the tax deductible of the home loan. Thanks.

if you have the extra money, why not buy a second home instead of paying one early? two homes makes better investment than one home. I know of
a lady who owns 300 homes in one county.

[compiler]

Originally Posted by jnazareno

if you have the extra money, why not buy a second home instead of paying one early? two homes makes better investment than one home. I know of
a lady who owns 300 homes in one county.

But, that will result in the monthly payment doubled and increased.

In addition, is paying off one house in 5 years first not better than paying off two houses with a large amount of interest for 15 or 30 years? Is out of debt in 5 years not better than in 15 or 30 years?

[jnazareno]

[quote=compiler]But, that will result in the monthly payment doubled and increased.

I meant to say rent the other property out...have them pay off the mortgage.
do you think Social Security will be paying you off when you retire ?
If you answer no, it's a great time to be pro-active and invest for yourselves
and make money, don't count on uncle sammy. Iam self-employed and
wish I have the option of not wasting money paying SS.

[efflandt]

Originally Posted by compiler

Can you explain * you can pay additional principal payments and pay it off early. * Basically, I want to save the interest. The interest of loan $100,000 in 5 years should be less than the same amount in 10 years. If I have to loan $100,000 in 10 years but want to pay the same interest in 5 years, how shall I do assuming the mortgage rate is 5%?

If you get a mortgage with no prepayment penalties, you can pay more than the required payment and the extra payment will pay down the principal to shorten the length of the loan (less number of payments and total interest).

Another option instead of a mortgage is a 1st lien Home Equity Line of Credit (HELOC) which is available at variable or fixed interest, and usually lower closing costs. If further down the road you temporarily need some cash, you can usually write your own check against your credit line for less than normal credit card interest rates. I totally refinanced my 3 yr old 30 yr mortgage with a fixed rate HELOC at lower interest and shorter terms. Just make sure it has no prepayment penalties, and preferably no annual fee.

[compiler]

I think the second option of the HELOC may not apply to the first time of home purchase, right?

Follow your first option. If I can pay down the principal of 10 years mortgage at the end of the 5th year without prepayment penalties, will the total of paid interest be same as I loan 5 years mortgage? I know the most of payments will go to the interest in the first several years. If I have to loan 10 years mortgage, I will pay the 10 years interest. So, I am afraid at the end of the 5th year I will have already paid more interest than loan 5 years.

[Kansas4me]

Compiler:

You are charged for interest while they are out their money. So if you pay off early (barring any prepayment penalites which are usually only for the first one to three years of the loan) you save money.

Here is a web site were you can plug in your figures to see about what your PI payment would be.
[url]http://ray.met.fsu.edu/~bret/amortize.html[/url]

If you go here, it will show you how much you can save if you make extra payments monthly, or just yearly.

mortgages.interest.com/content/calculators/index.asp

(right now it isn't wanting to pull up, but give it time)

You might shop around for all lengths of loans, as the loan length changes so does the interest rate. You might watch to see if a 10 year loan is a higher interest rate than a 30.

[Richard Douglas]

Hi:

If you are still looking for a home loan without cash down then click on the following:

[url]http://tinyurl.com/c22ze[/url]

or copy and paste in your browser.

I do hope that this can help.

Regards,

[nightrome2004]

If you have large amount of money to put down one of the responds is a good idea. Why not get a loan for 10 - 15 years on first home, pay down the interest by making extra principal payment, that knock out the interest, and invest in another property for income and tax right offs. All expenses on the rental property is tax deductable.