Discussion in 'Bullion Investing' started by Soiled, Apr 1, 2016.
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"Control" being the key word there.
Up to you. It could go back up to twenty, or linger in the lower teens for another decade.
Yup. Now if were something of value to the corporate folks, it would soar in value (at least initially). It it were of value as a product of labor though, well it would stay forever low. Profit exponential. Labor minimal. It's all in there. You decide.
Clicked on it briefly. Yeah, I've kinda always thought that about silver. Somehow the raiders keep it safely irrelevant though. I think when the smoke and mirrors go away though, it'll have to have some value despite their best efforts to stifle it.
on another note swinging back to this topic from before - "recasting" or "reamortizing" a mortgage. I just completed another one and my monthly payment went down by $74.
FYI, recast/reamortizing is not a new mortgage. It's using the existing mortgage terms (so your APR & terms don't change) and they recalculate the payments based on previous payments above minimum and add'l principal only payments to reduce the loan $ and ultimately to really pay it off quicker.
For example. Let's say your mortgage is $600 a month for 30 years. If you pay the $600 Plus an additional $200 to principal on avg think of how this impacts (a) shortening the actual term of the loan and (b) reducing the future interest payments.
In the old days banks used to recast each year for you automatically (at least mine did). Now they require you to ask. If you don't ask even if you make additional payments they do not recalc the (b) monthly interest to be paid and just follow the original calculated schedule. So you end up losing out by paying additional interest on a principal balance that is no longer valid.
So recasting "resets" the payment (principal + interest) term schedule to the current principal amount. Which saves you on your monthly payment and the interest payment. If you don't change your payment amounts you'll also lessen the time to pay it off.
So now, my 30 yr loan (6 years into it) is actually more like a 12 yr due to my overpayments and recasting (saving a ton on interest payments) and ultimately, more money for coins or bullion or other real investments.
Of course, I'm not lowering my monthly payments as next year I'll recast again (my credit union only allows one to recast once a year). But each year it goes down, my interest payment goes down in relation to the real principal balance.
I heard on the radio that with the Chrysler recalls on catalytic converters that they will need 77,000 ounces of a Palladium for replacement parts. ouch.
so ... that's gonna be expensive ....
My mortgage interest is calculated each month based on current principal balance. So I guess they are recasting automatically every month.
I guess some banks went to the dogs, which in this case, is a good thing.
what bank/credit union is doing that ??
^^^ This right here is mine too.
I believe it's illegal to charge interest on an erroneous principal balance.
Well there's a lot of illegality going out there then.
So if you made a $10,000 payment (say above a $1k normal payment), your next month is automatically recalculated based on that? and not just the normal principal goes up/interest goes down each month based upon a precalculated payment schedule.
Yes, the interest charges the month following the $10k principal payment would reflect the lower principal balance.
I've pre-paid my principal every month from day one. I printed out my own amortization schedule based on my additional payments to compare to the lenders monthly statement and its been spot on.
You should check your mortgage papers. Find out if your loan has a prepayment penalty. What you're describing leads me to think your mortgage is saddled with a prepayment penalty, if what you're saying is accurate.
I track my payments, etc too and mine weren't balancing out. So I emailed my CU several years ago and they told me I had to request a recast/reamort, max once a year. So I do that now.
You'll see if you scroll back another CT member now does the same thing for once a year. My first house a few decades ago they would recalc each year and send new payment coupons.
No prepayment penalty on my mortgage.
No fee recasting either.
Typically, FHA and VA loans cannot be recasted from what I understand. Mine is neither, and also not resold.
I'm still curious on your lender or what lender(s) recalcs each month.
I've had several lenders and they have all done it this way and @masterswimmer 's experience is exactly same as mine. Wells Fargo, Countrywide, Nationstar, even BoA have all had my mortgage at some point in time.
Suggestion: don't recommend your CU to anyone looking to finance a home purchase.
Their lending practices are not ethical IMO. If your principal is lowered by additional payments and they don't apply those additions to your next month's principal/interest split then you are not benefiting from your additional principal payments.
I would set up an interest bearing bank account to deposit your additional principal payments into on a monthly basis. At the end of the year take that money and make one principal payment and recast your mortgage after that. The extra interest can be applied to the mortgage as well.
That's what I do. Roll add'l $ to a high yield savings account and roll it back down each year and make a lump recast payment.
I don't have a small CU. They offer the lowest fees around. I haven't found a mortgage instrument like yours (unless it is a variable or adjustable) and from an investor standpoint it's not a fixed loan.
Recasting is nothing new for fixed term mortgages. If you google it you find out a lot of lenders offer it as long as it's not a FHA/VA note. you'll find articles galore about it even on realtor sites
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