So you are sending in a half payment every two weeks? That isn't your agreement with the mortgage company so they have the right to be unhappy. If you want to make more payments every year, and therefore pay off the mortgage a little sooner, do it this way. If your monthly payment is $1000, and you have been paying $500 every two weeks. that totals $13000 a year. My solution is to make one payment a month of $1083.33, which is the same result, more or less. Heck, round it up to $1100. Just make sure that the bank will accept extra principle payments, make sure that your payment specifies that extra amount goes to your loan principle. This post was edited by sushipup on Thu, Jan 2, 14 at 18:12

I'm nearly 80 years of age (and happy and thankful to be enjoying good health). I've bought stocks three times in recent months, and plan to go on doing so during coming months ... including borrowing to do so if I consider it wise. I don't know when the market bottom will occur, but it'll be sooner or later. The longer it's delayed, the greater likelihood that when the turn does take place, there'll be a more pronounced (and quite likely longer term) runup following the turnaround. If I'm not around to enjoy it, my beneficiaries are not in immediate need of money (and should they be, would likely use the stocks that were undervalued as collateral for a loan). My executor is smart enough to manage the assets skilfully, and there's enough available to satisfy the income tax people (I think). The charities that are to benefit may get some over the short term, but if the markets are low, my executor will have leeway to allow them to recover before making the major contribution ... ... even if she needs to use the assets as collateral to make a short- to medium-term loan to pay the charities earlier, in order to get the necessary receipts to enable there to be a substantial reduction in tax payable on the estate in the year of my death. My investing career, as far as stocks go, began about 45 years ago, so I've seen a few years of market fluctuations (and, dare I say, "shenanigans"?). I took the course that stockbrokers take over 25 years ago - and recommend it, for anyone who has enough interest in the field and the mental alacrity to make it worthwhile. I took the six courses that the Chartered Fiancial Planners take, as well. Many investors would learn a great deal about evaluating the market, and how to evaluate individual stocks, by taking those courses, as well. The whole deal would likely cost around $2,000. - and after 10 years or so (should you not die in the meantime), I suggest that you would think it to be one of the smartest investments that you'd have made in recent years. Have a lovely late-winter week, everyone. Don't let the weather freeze your investment smarts! ole joyful

Closing costs come along with a mortgage or more accurately I suppose a loan? There are basically two types of closing costs. Those related to the purchase (aka transaction) and those related to borrowing any money to facilitate the transaction. Those related to the transaction are charged whether you are taking out a loan or not. Examples include title insurance, property taxes, transfer taxes, attorneys' fees, agents'commissions, certain other types of insurance. Some of these charges will be a fixed fee, others based on a percentage of the sales price. Some of these fees are charged by the title company and some by the state/local authority. The second set of closing costs are those related to taking out a loan. The appraisal fee (which is usually a fixed charge - say $350)and the origination fees (aka points - which is based on the amount of the loan. Each point is 1% of the loan amount). Seems like a lot of the closing costs come from the title company - and you have to do that anyway? I.e. why are loan closing costs a big deal? Most people finance their home purchases by borrowing the money. It costs money to borrow money. The largest cost of borrowing money is, of course, interest determined by the interest rate. The other big cost of borrowing is the origination fee, aka points. It's a big deal because it is a one-time charge based on the amount borrowed. So, it's variable. A point is 1% of the loan amount. If I'm buying a $500,000 house, borrowing 100%, and paying 1 point, it's going to cost me $5000 (just drop the last two zeroes on the loan amount.)If I put down 50% and finance $250,000, the point will cost me $2500. Some borrowers find it advantageous to "buy down" their interest rate. They might pay 2 points or more to purchase a lower interest rate over the life of the loan. Other borrowers might pay zero points and buy a slightly higher interest rate. Lenders will often tie interest rates and points together as a marketing tool to stand out against their competition. So, depending on the amount financed and the number of points charged, this particular cost of borrowing money can make or break the loan for a potential buyer. And do mortgage related closing costs go up with the amount of the loan? How why? Some do, some don't - see above. Why? 'Cuz. (LOL) Then depending on the last, only buying a house full price/cash is an advantage? A hefty downpayment and smaller loan gets you (no)where? Not necessarily. Sadly, Mary, this is where the math becomes really important. But a good mortgage calculator with a full amortization schedule can be a big help. It will calculate not only the monthly payment but the total interest cost of the loan (prepare for heart failure) and enable you to model different interest rate, loan amount, and payment scenarios. Stop thinking of it as math and start thinking of it as money...playing with money. So when people talk closing costs - are we talking two types? The type you pay no matter what - say you bought full purchase price - or even inherited a house. And the ones that come along with a loan? Which are loan ones and which are not? Yup...see above. Mary, the best way to understand the total transaction costs of a real estate purchase is to take out your settlement statement from you recent home sale. This is called the HUD-1. Then go to HUD's website and follow the line-by-line explanation of what each settlement line means. You'll see right away that the form is divided into loan costs and other costs. Doing this is akin to doing your taxes by hand. Despite the miracle of tax software, you will never understand our tax system better (and how it applies to you) than after you've done your taxes with paper, pencil, and a good tax manual. Something, each taxpayer should do at least ONCE in their lifetime. Same goes for the HUD-1. It's work but it's good work. Hope that helps. The concepts, guidelines, and rules-of-thumb are important but no piece of generic advice will ever replace working the numbers specific to YOUR situation, your financial needs, your psychology, and your future situation. Mary, I know how much you want to buy a home versus renting. You love "home" - it's a passion, a hobby, and a lifestyle for you. You also want a secure financial future and you have doubts about how these two fit together right now. I think it's great that you keep asking questions and seeking answers. I read that you had engaged a financial planner. As you review your decisions, you might want to start a new hobby - getting past math anxiety by learning more about consumer finances and financial planning. The math is such a small part of it. It's much more a process of thinking and mindset. You might want to see if your local county or community college offers financial education classes. It's a great way to meet people who have similar interests and it can become downright addictive. Fifteen years ago, I didn't know there was such a thing as a financial calculator...now, I carry one with me all the time. Playing with mortgage scenarios, calculating investment earnings, etc. is a great way to pass time while waiting in lines...sort of like having your own financial game-boy. Good luck!

I work part time for a very successful couple that pays anything that they can, business or personal, with their airline rewards credit cards. For their business it does include most vendors that they deal with. Why do so many of these businesses take cards and pay the percentage? Becuase bad checks and bad debt in general can easily take a big chunk of the profit. They pay off their credit cards every month and never pay interest. They travel ALOT plan well ahead of time. Not only are they getting the miles, but with the float time they get waiting for each credit card payment they let large amounts of money sit in their money market account. I know most of us won't get they amount of benefits these folks get, but if you can get some benefit, why not? I'm looking into rewards cards that I can get directly through my bank and pay on-line from my checking at least once a week. We have no credit card debt now, and won't ever let that build up again, but if I can work it into some benefit for me I will try.