Anyone scalping the FTSE Futures??

[Sonicscooter]

This part of the world is a 30 year loan.
First 10 years interest only and last 20 years interest and principal.
Idea is to make extra payments in the first 10 years.

But how many do....

 

[barjon]

About 15 years ago i had a mortgage, the company i was with would send a statement once a year, the first week in Jan, it would show the original amount borrowed, the amount paid the off the previous year, the time left and the amount owed including compounded interest.

The compounded total was frightening, so i decided to cut back on luxuries, took a few grand in emergency savings and paid off some of it, increased the monthly payments by a third, and it is honestly amazing how fast it goes to zero, best thing i ever did, mortgage free for 10 years.

Saves a fortune over the term.

Aye. The high inflation times turned the capital owing to small beer pretty quickly but living with 15%+ interest rates was hairy.

 

[12WBT]

But how many do....

I would say a lot of people would remortgage again with another lender before the 10 years are up.
Vicious circle bit like governments and central banks.

 

[Sonicscooter]

I would say a lot of people would remortgage again with another lender before the 10 years are up.
Versus circle bit like governments and central banks.

Just frightens me.......i'd lay a kitten, easiest way to make money is to stop giving it to someone else........

 

[barjon]

I would say a lot of people would remortgage again with another lender before the 10 years are up.
Versus circle bit like governments and central banks.

I got my first mortgage in 1961 - only let you have 2 1/2 times salary (3x if you were lucky) and only basic salary counted (no overtime, bonus, or wife's earnings etc). Only lend you 75% of property value and interest rates 5%+ if I recall.

How things have changed - I read yesterday that banks were going to restrict to 4x total earnings!!

 

[postman]

Just frightens me.......i'd lay a kitten, easiest way to make money is to stop giving it to someone else........

I really MUST stop shorting the Dax then.

 

[Sonicscooter]

I really MUST stop shorting the Dax then.

You know what i've said regarding shares, i keep waiting for it all to go BANG, but me and Mr MARKET don't seem to be reading the same script.........

 

[tar]

I really MUST stop shorting the Dax then.

When you stop it will drop !

 

[2be]

That would be a REPAYMENT mortgage then.
The clue is in the bit where you used the word "repays" in your description. :whistling

Every mortgage is re-payment mortgage, - eventually.
Interest rate only mortgage might provide some advantages, but it has to be repaid.
I my experience there has been times that the extra payments had to wait a bit, lets call it lean years.
Fat years have to cover for the lean years and it allowed me to pay the capital in a way that allows me a bit more control.
In some situation the paid interest is also a tax deductible expenditure, but that is another matter.

 

[kimo'sabby]

anyone on here mind if I post OANDA charts?

 

[Sonicscooter]

anyone on here mind if I post OANDA charts?

LURKER ALERT..............Hello.......

 

[Sonicscooter]

Don't know who's in charge.....Postie i think.........

 

[SlowlyButSurely]

In some situation the paid interest is also a tax deductible expenditure, but that is another matter.

I like the term 'tax efficient'

 

[2be]

This part of the world is a 30 year loan.
First 10 years interest only and last 20 years interest and principal.
Idea is to make extra payments in the first 10 years.

This is an interesting scenario. Can you re mortgage after the fist 10 years to have similar benefits. It is usually the first 10 years that couples have a most expensive and less earning time.
By the third re mortgage when kids are educated and usually earning have increased it might be easier to think to repay the capital borrowed 20 years previous.
Inflation itself would have assisted if the borrowed sum has stayed at that same level, or if any increase in borrowing has been wisely invested, let say in education.

 

[postman]

Every mortgage is re-payment mortgage, - eventually.
Interest rate only mortgage might provide some advantages, but it has to be repaid.
I my experience there has been times that the extra payments had to wait a bit, lets call it lean years.
Fat years have to cover for the lean years and it allowed me to pay the capital in a way that allows me a bit more control.
In some situation the paid interest is also a tax deductible expenditure, but that is another matter.

I think we may be talking at cross purposes.
An interest only mortgage is one where the principal is only repaid at the end of the term (20,25,30 years) if you start paying back ANY of the principal Before the end of the term there are penalties.
They changed the law to stop getting tax relief on mortgage interest a looong time ago.
I will stop cluttering up this thread with mortgage stuff now and carry on cluttering it up with my usual rubbish. :innocent:

 

[2be]

LURKER ALERT..............Hello.......

post and and every chart/s

 

[postman]

The dax gave back 8 points just now how nice of them, I must go long surely.

 

[Sonicscooter]

post and and every chart/s

Have you developed a stuter or you on the booze........

Right back to work....

 

[postman]

Don't know who's in charge.....Postie i think.........

I'm not even in charge of my own dog.

 

[kimo'sabby]

LURKER ALERT..............Hello.......

there shouldn't be an alert on an open forum...all guests welcome in a Christian manner...and all that:|