How can I pay off my mortgage the fastest?

My boyfriend of 5 years and I recently bought a house for 70,000. We put 20% down, so now we will have to make payments on just $56,000 on a 7% ARM for 15 years. I was wondering if it's not too insane to get a loan in my name for 28,000 and have my boyfriend get a loan for 28,000 and pay off the mortgage loan. The reason I thought of this is because less would be going out for interest since it's a smaller amount right and we would be able to pay it off way sooner than 15 years. I just don't like the thought of most of my money going towards interest. If anyone thinks I'm nuts say ';I'; and I'm willing to listen to sound advice. Thanks!How can I pay off my mortgage the fastest?
the interest would be the same if you got the same interest rate, because the loan would be the same just divided. besides you would probably have to pay closing fees again, also new loan fees.


if you want to pay your loan off faster increase your payment, most of the first 5 years of payment goes to interest, by increasing you payment by $5.00 a month you would pay off much faster. by paying half you payment twice a month it would also pay off faster.


I just noticed that you have an adjustable rate mortgage, historically mortgage companies raise the rates as fast as they are allowed to according to the contract, a fixed rate at a half percent more would be much safer, and you need to check to see if there is a prepayment penalty, that is pretty standard.How can I pay off my mortgage the fastest?
The 7% ARM is high, yes. However, you can't get 2 seperate loans in first lien position. You should refinance into 1 new loan at around 6% fixed...not adjustable.





Here is some additional info. Hope this helps.
The ARM part is what scares me. Doesn't that mean that the 7% will go up? If you can each get a 15 or 10 year fixed loan at better than 7% (I guess you would use your house as collateral), then I'd do it.
';I';





Before you start making decisions like that, you need to determine what the interest on separate loans would be. The smarter thing to do is to pay your mortgage bi-weekly or even weekly if you can. If you pay more frequently (like bi-weekly) then your amoritization period (the length of time it's going to take you to pay it off) decreases. They can be smaller payments or larger if you can handle it. Find out what the terms of your mortgage are. I have a mortgage that I can make extra payments on and up to 15% of the original mortgage amount annually. Whenever I have extra money, I throw it on the mortgage. The extra money placed on the mortgage goes directly towards the principle - not the interest.





For my first place, I was single and making less than $40,000/yr. I started with a mortgage of $ 85,000. Every time I got a raise, I increased my mortgage payment. Whatever I increased the payment by went straight to principle - not interest. Within 7 years, when I was ready to sell, I only owed 49,000.





SO - that would be my suggestion to you. Pay it in shorter increments (bi=weekly or weekly) and pay extra when you can.
1st things first - get married tomorrow!


as you stand you have no legal rights to his half of the house should he die or dump you.


he can force sale the house and you get burnt.


you need serious legal advice. with out a will the house could be tied up in probate for years.


2nd - why buy the cow when you get the milk for free? get married tomorrow.


don't worry about the interest fix your legal problems before you get bent.


splitting the loans is not numbers smart you pay more in up front costs than you would save in interest. want to save interest just pay down ';principal only' each mth.


visit daveramsey.com to unlearn what the banks taught - they will not like it.
If you have positive cash flow, the best way to do this is to pay your mortgage with your entire paycheck and use credit cards or a Home equity line of credit to pay for food and bills. Then pay the entire credit card balances with your second paycheck. You will pay off your mortgage a lot faster because mortgage interest is computed on a daily basis. You're basically playing the same game that the banks are playing with you.





Check out this website for more details:


www.normandmike.com





On a side note, make a contract between the two of you stating the terms of your home purchase and include provisions in case one of you dies, wants out or becomes a vegatable and is unable to pay the mortgage. I see so many people's ';partnerships'; break up and cause the house to go into foreclosure because one person either is unable to make the mortgage payments or doesn't pay them out of spite. It is extrememly important to do this if you live in a community property state.





Regards
It won't work the way you describe. Here's why:





When you get the first mortgage for $28,000, you might get a good interest rate in the 6's, but the 2nd mortgage will likely be HIGHER, like 8-9% because 2nd mortgages are not priced as well as 1st mortgages.





So you'd have lower payments on one, and higher payments on the other.





Here's all you have to do: figure out how long until you want to pay off your loan. Say 10 years. Go to a financial calculator, plug in your interest rate, your mortgage balance, and 10 years, and see what your payment will be. Then just start paying that much each month. You can do it yourself, without the refinance charges. Here's a financial calculator you can use: http://www.robhenry.com/calc.htm