How can I change how much money goes towards my principal, & how much goes to interest on my mortgage payment?

Answer 1

Pay more than what your monthly payment is supposed to be, but make sure that you tell your lender to apply the excess to the principal. Your other choice is to refinance, but with rates having risen, there's no guarantee that you'd get a new mortgage at a lower rate.

Answer 2

The only way to do what you are suggesting is to increase the amount of your monthly payment over the required payment. Mortgages follow a mathematical amortization schedule, and any and all lenders will allocate your payments to principal and interest according to the schedule.

If you add extra money on top of the payment, that amount will go fully to principal reduction.

Answer 3

You can't typically reduce the amount you pay for interest on a mortgage payment but you can always pay more towards the principal if you can afford a few extra bucks.

You can make one time additional principal payments or do it each time a payment is made. Often you can do it online with your mortgage provider, or you may have to call them to arrange it.

Each dollar you pay extra on the principal each month can save you an amazing amount of money over thirty years with interest.

ALSO: Ask your mortgage lender about paying each week or bi-weekly to coincide with yout paycheck. Interest is compounded daily and each dollar you pay off earlier by paying more frequently actually helps reduce a lot of interest over thirty years...even if you pay the same overall amount as you did monthly!

Answer 4

There are 2 ways.

1. This is the easy way: Just make a larger payment than required. Include a note telling them to apply the excess to principal. (If you don't include the note, many lenders or mortgage servicing companies will just dump it into your impound account where it won't do any good.)

2. This is the tougher way: Refinance the mortgage for a lower rate, shorter term, or both.

Answer 5

If you are making the minimum payment ("payment amount due") you don't get to change the amount going towards principal.

Only if you put additional money in with your monthly payment, can you pay down the principal faster.

Btw, make sure you instruct the bank to take that extra money and place it towards your principal. Some banks will "play dumb" and put the extra cash into your escrow if you don't say one way or the other.

Answer 6

If you pay more than the minimum amount more will go to the principal However, every payment you make first goes to all the interest outstanding and then the principal, so you always have to pay all the interest.

Answer 7

You can't change it but if you pay more than your scheduled payment it usually goes toward principal.

Answer 8

You can't unless you refinance your house.