Comments on: Paying off that mortgage

By: James

James — Sat, 28 Feb 2009 20:45:38 +0000

Nice article.

By: Alisha D Herron

Alisha D Herron — Tue, 03 Feb 2009 22:10:07 +0000

nice article! nice site. you're in my rss feed now
keep it up

By: loan modification guy

loan modification guy — Wed, 21 Jan 2009 02:48:42 +0000

ust a warning: I’m now going into sales-pitch mode. I do not work for the One Account but I think it’s brilliant (well, brilliant for me, I take no responsibility if you listen to me and end up huge great hole of debt). ———————————– nice heads up dude!

By: Mortgage Site

Mortgage Site — Wed, 10 Dec 2008 20:08:16 +0000

Once the amount of savings you accrue is equal to the remaining balance
pay the balance off in full. I'd be interested to do a Braines-style
spreadsheet to work out which approach is more beneficial
good one

By: Mortgage Site

Mortgage Site — Wed, 10 Dec 2008 15:08:16 +0000

By: Graham White

Graham White — Fri, 25 Jul 2008 14:50:43 +0000

Correct. If you're prepared to do it manually, however, you benefit from a lower mortgage interest rate and a higher savings rate. Overpay on your mortgage each month, saving the remainder. Once the amount of savings you accrue is equal to the remaining balance pay the balance off in full. I'd be interested to do a Braines-style spreadsheet to work out which approach is more beneficial. I suspect it would depend on just how quickly you're capable of paying off the balance though, I would expect there to be a cross-over at some point as to which is most efficient.

By: garethj

garethj — Fri, 25 Jul 2008 12:46:08 +0000

If you compare the rate of the One Account to a standard mortgage it's gonna be a lot higher. However, if you have the ability to pay it off in 4 years as opposed to 20 then that higher interest rate is a lot less significant.

By: Graham White

Graham White — Fri, 25 Jul 2008 10:50:43 +0000

Correct. If you’re prepared to do it manually, however, you benefit from a lower mortgage interest rate and a higher savings rate. Overpay on your mortgage each month, saving the remainder. Once the amount of savings you accrue is equal to the remaining balance pay the balance off in full. I’d be interested to do a Braines-style spreadsheet to work out which approach is more beneficial. I suspect it would depend on just how quickly you’re capable of paying off the balance though, I would expect there to be a cross-over at some point as to which is most efficient.

By: garethj

garethj — Fri, 25 Jul 2008 08:46:08 +0000

If you compare the rate of the One Account to a standard mortgage it’s gonna be a lot higher. However, if you have the ability to pay it off in 4 years as opposed to 20 then that higher interest rate is a lot less significant.

By: Graham White

Graham White — Thu, 24 Jul 2008 23:59:46 +0000

Nice idea! We do a similar thing, but manually offsetting our savings against our mortgage so effectively our savings ear the interest charged by our mortgage so we're able to concentrate on paying it off. It's much more manual doing it that way though, these properly off-set mortgages are a great idea if you can get one at a decent rate!