ST Alpha - "sure, but paying the extra principal will drop the interest paid total as well." (Reading a Post)

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In response to "you're still losing ground in the long run because of the higher interest, but you gotta do what you gotta do. -- nm" by znufrii

sure, but paying the extra principal will drop the interest paid total as well.

Posted by groiny (aka groiny) Sep 9 '13, 09:29

when I was not working, I had to drain my savings to keep my house, because refinancing was not an option for me, but if it was, I would still have 15k sitting in my 401 K, instead of 0.

Responses:

it'll help in the long run, sure - znufrii Sep 9, 09:33 7
- best thing to do is to plot out the amortization tables in excel and compare the different scenarios. -- nm - znufrii Sep 9, 09:36 6
  - best thing to do is cover your monthly expenses as best you can. the long run isn't important here. -- nm - amanda hk Sep 9, 09:38 5
    - even in the short run, it's about $150-200 more being spent on interest a month instead of paying down principal to free up $400 a month in cash flow - znufrii Sep 9, 09:47 3
      - the money spent on interest a month is irrelevant for this exercise. - groiny Sep 9, 09:49 2
        
        while your IM may be entirely true, including a discussion of costs in decisions about cash flow are by no means irrelevant. -- nm - znufrii Sep 9, 10:07
        
        right -- nm - Don Homer Sep 9, 09:51
    - yeah, it is no fun stressing for 6 months on how you are going to feed your kids. nm -- nm - groiny Sep 9, 09:39

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sure, but paying the extra principal will drop the interest paid total as well.

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