Reader Questions

Single Mother on Disability Wants to Pay Off Loan Early. – Tonya

41 yr old Single mother, on disability. I live in Tennessee. The house I live in, My ex husband and I paid cash when we first moved in. Then we went and took out a 40,000.00 loan. The loan is a 5 yr refin. balloon payment.

My payments for the house is 326 a month, its time to refinance and I was wondering how much extra each month should I pay to pay the loan off in 5 yrs, before I will have to refinance again?

Tonya




This reader question was submitted for site members to answer.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question. Post your response in the comments section below.

If you have a credit or debt question you’d like to ask just use the online form.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


READ  GAO Takes Closer Look at Home Loan Modification Scams



About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

8 Comments

  • It would be anywhere from $725-$825 depending on the interest rate. I agree with Damon though, if you are refinancing anyway you should get a long term fixed rate loan and just pay it off as quickly as you can. This way you will have the flexablility to make adjustments if anything changes in your financial situation.

  • It would be anywhere from $725-$825 depending on the interest rate. I agree with Damon though, if you are refinancing anyway you should get a long term fixed rate loan and just pay it off as quickly as you can. This way you will have the flexablility to make adjustments if anything changes in your financial situation.

  • Without knowing the interest rate I’d guess that she would have to pay at least $750 to $800 per month at a 5% interest rate. I would suggest if you have the cash pay it off sooner, because if something changes with your income or credit you could lose the home if you can’t refinance.

    The payment is very manageable and you shouldn’t have a problem paying it off even sooner if you focus on it.

Leave a Comment

Scroll to Top