How to pay off 2nd mortgage faster

tkrog · Joined: 08 Apr 2008 Posts: 3 2.88 Dollars($)

Hello,
This is my first time on the forum. My wife and I did a 80/15/5 on our new home last June/07. The 2nd mortgage is for $36,000. We have 7 years to pay it off at 7.25. After the 7 years it has a cap of 12%. We would like to pay it off in the next four years. Our payments are $243.54 per month(30 years!). What would it take to pay it off in four or less years? We don't have any other debt. We could pay about 300.00 - 500.00 more per month to pay it off.

Could someone tell me what would be the best way to do this? I would also like to put $3,000.00 down as a one time payment. I think it's better than sitting in a savings account? Also, is there a calculator on line to run these numbers? I'm not sure how the interest works. Now that's pretty sad!

Thanks for any help.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi,

I have answered your question at http://www.mortgagefit.com/secondloan/extra-payment.html

please have a look at it.

Feel free to ask if you have any further questions.

Best of luck,
Larry

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