Common Sense Club

Or who the rules of American life are written for

Или о том, для кого написаны правила, по которым живет Америка

Или о том, для кого написаны правила, по которым живет Америка

We have already looked at different ways of paying off mortgage (articles #2 and #3) by making additional payments (prepayment). However, mortgage was not supposed to be paid off in 30 years only. Mortgage is an important part of the budget, and its pay off term should be determined by the budget, no matter what kind of mortgage had been chosen by you at the time of home purchase.

Для большинства в нашей стра­не Mortgage (М) – это что-то типа «священной коровы» в Индии или знакомой из прошлой жиз­ни таблички: «Не влезай - убьёт». По этой причине самым популярным ви­дом М является 30-тилетний, который выбирает подавляющее большинство покупателей недвижимости. Поэтому доминирует практика: «выбить» хоро­ший М. и забыть о нём до того как .... прокукарекaет «жареный петух».

Many people in this country see mortgage as something similar to a sacred cow in India. Many of us associate mortgage with a familiar sign ‘Beware! Danger!’ This is the reason why most homebuyers tend to pick a 30-year mortgage, the most popular one, especially with the first- time buyers.

When we were getting a mortgage on our first house very few of us had a realistic plan of paying off the loan before retirement. However, the time went by, and at a certain point we came to a realization that we only have 10 years left before retirement while paying off the mortgage will take 15-20 years. We are faced with the dilemma: is there a possibility to pay off the mortgage sooner? And how to do, that if we can’t afford higher monthly mortgage payments?