I keep getting mail that tells me if I can add 1 extra mortgage payment a year that it will reduce my 15 year mortgage down to almost half. Has anyone ever heard of this. I'm wondering if this is possible.
2007-09-22 08:39:20 · 3 answers · asked by sweet 5 in Business & Finance ➔ Renting & Real Estate
Are they trying to sign you up for payment every two weeks program for just a small set up fee of about $300 or $400?
Extra money applied to your principal will reduce the mortgage term but you don't have to set up the every two week thing, nor pay anyone for the privilege
You can add even $10 to your monthly payment, earmarked as principal and that will reduce your mortgage term.
2007-09-22 09:58:47 · answer #1 · answered by bdancer222 7 · 1⤊ 0⤋
It is a fib. If you paid the an extra payment of the SAME AMOUNT, your would cut off about 2 years from your term on a 15 year loan
2007-09-22 08:52:28 · answer #2 · answered by linkus86 7 · 1⤊ 0⤋
$100 extra per month will cut it down by about a third
2007-09-22 08:48:07 · answer #3 · answered by pommell1 1 · 0⤊ 1⤋