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From: scott@opus.UUCP (Scott Wiesner)
Newsgroups: net.invest
Subject: Mortgage payments question
Message-ID: <760@opus.UUCP>
Date: Thu, 30-Aug-84 14:05:21 EDT
Article-I.D.: opus.760
Posted: Thu Aug 30 14:05:21 1984
Date-Received: Thu, 6-Sep-84 03:02:20 EDT
Distribution: net
Organization: NBI, Boulder
Lines: 22

I'm buying a condo.  It's my first home, and I've got a question
about the payments I'll be making.  The early payments will be 
mainly interest. (I've printed an amortization table for my payments).
I know I get to deduct those interest payments, but I assume it's
better to not have to pay them at all.  Now, if I throw in an extra
$100 or $200/mo on my early payments (say, for the first 10 or so)
I'll be paying off the principle with that extra money, so I'll sort
of get to "cross out" several of my payments, and start with the 
following ones.  This way, a larger portion of my money (per payment)
is going toward principle and less toward interest.  This is sort
of equivalent to making a bigger downpayment and getting a shorter
term loan.  Is making larger payments like this a good idea in the 
early part of the loan?  The advice I have heard in the past says you
want to put as little money as possible into investment properties,
but you want to put as much money as possible into your home.

Now, I realize I might not have explained this as clearly as I should 
have, but I think you get the idea.
-- 

Scott Wiesner
{allegra, ucbvax, cornell}!nbires!scott