Louis2
Recycles dryer sheets
- Joined
- Jan 20, 2014
- Messages
- 58
This is NOT a another question about whether to pay off a mortgage early.
This question is GIVEN a person is going to payoff a mortgage early…
From a finance standpoint (not psychology, etc) is there any difference between these two scenarios? In the first scenario, a person pays $500 extra per month for ten years and pays off their mortage in half the time. In the second scenario, the person stuffs $500 per month in a coffee can and after ten years makes a $60k payment to the lender.
The amortization schedule is fixed, correct? Feels like I'm missing something.
This question is GIVEN a person is going to payoff a mortgage early…
From a finance standpoint (not psychology, etc) is there any difference between these two scenarios? In the first scenario, a person pays $500 extra per month for ten years and pays off their mortage in half the time. In the second scenario, the person stuffs $500 per month in a coffee can and after ten years makes a $60k payment to the lender.
The amortization schedule is fixed, correct? Feels like I'm missing something.