payment is now around 1200 a month. I am assuming that the payment amount is based on the principle and interest at the current time, so that if I make a one time payment towards principle of x amount it should make the current principle that I am making payments on lower, thus lowering the amount of money due over the same number of periods...is this correct
2007-01-26 10:39:13 · 7 answers · asked by stupid question 2 in Business & Finance ➔ Renting & Real Estate
WoW Quick answers!!! Thank you for your answers
2007-01-26 10:52:32 · update #1
No. If you make an extra payment against the principal, the term of the loan will be shortened but the required monthly payments will not change.
2007-01-26 10:42:58 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
It can, but you have to do it the right way. If you just send in a larger payment, even marking it "for principal", your monthly payment will stay the same, though your balance will be lower.
The bank that holds my mortgage, and I am sure many others, will allow a large payment to be made and then they will refigure the monthly payments. I forget what they call this, I am sure there is a banking name for this transaction. Some may also charge a small fee, though mine is free.
Bottom line- call and talk to a real person at your mortgage company, don't just send the money into the payment center.
2007-01-26 10:50:04 · answer #2 · answered by Dee 2 · 0⤊ 0⤋
All these answers are good ones. The only exception is if your "mortgage" falls under the classification of a simple interest loan. Frequently this is true of interest only (I/O0 loans. In this case, your monthly I/O payment will go down. As always, read your product guidelines to ensure that this holds true in your particular case.
2007-01-26 10:47:12 · answer #3 · answered by David 3 · 0⤊ 0⤋
one million. fairness is the quantity of money your place is worth in case you sell it now, minus what you owe on it. in case you need to sell for one hundred fifty, and owe a hundred, then 50 is your fairness. you will get 2d mortgages against your fairness as long as you have some - yet now you need to pay your first and 2d loan to maintain your place. you do no longer ought to strengthen the homestead to have fairness, as long as housing costs upward push. 2. residing house is something you report along with your state or county. You get a harm on your components taxes in case you reside interior the homestead particularly than having it as a condominium. If the home is your residing house (the place you reside) lenders think of you would be greater probable to pay returned the be conscious. 3. Refinancing is what you do to get a decrease cost - often because of the fact the expenses of pastime have dropped from once you got your place, or because of the fact which you have paid for an prolonged time and want a decrease cost, and are prepared to pay yet another two decades particularly than pay off in 15 such as you're able to in any different case. 4. lenders purchase and sell mortgages all of the time. i think of thrice in 14 months is a lot, yet all it variations is who you're making the check out to.
2016-11-27 20:45:35 · answer #4 · answered by vannostrand 4 · 0⤊ 0⤋
No, you would need to refinance to get the payment lower.
2007-01-26 10:43:56 · answer #5 · answered by BMW BFD 5 · 0⤊ 0⤋
The answer is YES if it is in conjunction with a refinance of the home.
2007-01-26 11:23:12 · answer #6 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
no you will just pay it off faster
2007-01-26 10:43:00 · answer #7 · answered by nbatch2006 3 · 0⤊ 0⤋