Re: Mortgage prepayment question

In article 
<28859472-dad5-4d2d-aafb-409c52ef5f8f@[EMAIL PROTECTED]
>,
 Mike <mike@[EMAIL PROTECTED]
> wrote:

> > Yes.  That's 6 months worth of principal.  You could knock
> > off the entirety of your remaining mortgage payments by
> > paying off *all* the remaining principal.  Same idea.

> Okay, I just wanted to make sure I understood the concept right... it
> seemed right, but it seemed too easy.

It isn't as easy as it might seem.  That money you avoid paying
is not a savings.  In fact, if you can invest your prepayment
amount in something that returns more, like the stock market
over time, prepaying can actually cost you far more than what
you save.  You also give up some of the tax deduction.

-john-

-- 
====================================================================== 
John A. Weeks III           612-720-2854            john@[EMAIL PROTECTED]
 
Newave Communications                         http://www.johnweeks.com

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