Can I put the $ back that I borrowed from my home and lower the payment again?

Question

The payment went up from borrowing from it. Obviously, I cant afford it for too long.So can i just put it back and lower my payment again?That will give me the loan -to-value cushion again right?

Answer 1

You'd need to refinance again, because the payment does not go down as you repay principal.

Answer 2

It depends on the loan type. If you have a credit line or similar then when you pay down the balance the monthly payment is reduced.

If you have a fixed loan payment loan then reducing the loan balance will not reduce the loan payment. The term of the loan (how long you continue to pay) will decrease.

Check your loan details. Or contact the lender and ask them to tell you what will happen. They should be able to accurately tell you if there will be any significant changes and what will change.

A different option could be to refinance into a loan that has payments you more easily can afford while reducing the balance outstanding

Answer 3

You need someone to look at you original loan and this money you borrowed from your home. Is it a line of credit, was it a refinance. What was the instrument that allowed you to get the money. That document should contain information about repaying the loan.
Without knowing for sure how you got the money any answer you get is only a guess.

Answer 4

You can, IF, big IF here, you have an option to reamortize your loan. If your loan was originally set up that way, you can, for a small fee -- usually $100 -- ask them to reamortize your payments. It still makes sense to put that money toward your mortgage, however; since it will lower your interest payments -- and it will shorten the length of your loan.