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View Full Version : They can REDUCE our "principal" balance??



Dirtcrasher
10-02-2008, 09:35 PM
Whats this talk about banks reducing "SOME" mortgages principal balance??

I'm not sure about you, but I myself can't/couldn't put a dent in my principal balance for the first 10yrs of a 30yr note....


How do we all get in on this deal? and what are the requirements??

Do I have to buy an overvalued home, take a home equity loan and abuse too much credit to get this deal??

Someone help me with this please??

Billy Golightly
10-02-2008, 09:39 PM
Whoa, I'd like to hear about this too.

firehart
10-02-2008, 09:50 PM
If the banks don't have to pay their loans, why do we?

Billy Golightly
10-02-2008, 10:04 PM
If the banks don't have to pay their loans, why do we?

Logic like that is normally lost on politicians :p

ATC-Eric
10-02-2008, 10:27 PM
I hate principle! Can I join your gang? lmao

firehart
10-02-2008, 11:10 PM
I was reading a article in the paper yesterday that as we are bailing out their butts they are still refusing to change the way they do business.

ATC-Eric
10-03-2008, 12:18 AM
They shouldnt have been giving loans they KNEW people couldnt pay.


Im glad I wouldnt settle for anything but a fixed rate on my house, and can afford my mortgage payment (well its a large amount, but I survive).

MyMistress86R
10-03-2008, 09:08 AM
I'm not sure about you, but I myself can't/couldn't put a dent in my principal balance for the first 10yrs of a 30yr note....

This is because it takes roughly the first 50% of the life of your note to even reach the point where your payments are balanced between principal and interest. The way banks amortize the payments on your note, they make sure they get the bulk of their profit before actually starting to reduce the amount of your loan. Each and every payment from start to finish is just ever so slightly differently balanced principal vs. interest. Your very first payment was probably in the area of 98% interest and your very last one will be the same towards principal.

As if their policies weren't already too hard to swallow, eh? lol

dickieg89
10-03-2008, 01:07 PM
Banks suck. I was working on a home equity to help work on my place and then all this nonsense happened and the bank accessed my house for far less than i feel i could list it for, well maybe a couple weeks ago, and i said F it and didn't go thru with it.

To reiterate, banks can kiss my hairy cracker *Edited**Edited**Edited**Edited**Edited*.

Howdy
10-03-2008, 08:49 PM
I heard about this last night on Clark Howard. There are soo many strings attatched that it is a bad deal. IMO
Howdy

Tri-Z 250
10-03-2008, 09:24 PM
Look to Country Wide Home Loans...they'll hook you up Dick89. Imagine a rectangle slice it in half from the top left corner to the bottom right. That line represents the payoff line to the bank. The left side of the graph is Start Pay...The right reps the finish pay. The bottom triangle is interest...the top is principal or actual loan payback.....So you never get to a dollar 4 dollar even at the end of the loan. If your payment is say 1200 a month to drop 5-7yrs off the loan pay 1/12th( $100) of a payment more each month...This is a simple way to make 1 extra payment per yr with out really crunching you at the end of the yr. Devalued homeloans will only effect the blighted areas...and the people with 2 home loans with a house that hasn't sold in a flat market.