reduce the number of months that I have to pay? I’d like to lower my monthly payment to a comfortable level by paying off $10,000 cash I am hoarding. What effect will it have? Thanks.
you’ll have to refinance to lower your payments, all paying that money will do is shorten the length of time you pay, NOT lower your payments!
If I pay more than my monthly mortgage payment due, will it reduce my future monthly payments or…?
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you’ll have to refinance to lower your payments, all paying that money will do is shorten the length of time you pay, NOT lower your payments!
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No, it won’t effect your monthly payment… It will just be taken directly off of your pricipal balance.
It will shorten the number of payments you have to make, but you will still need to make the same monthly payment.
If you want to reduce your montyly payment, you can refinance… but that wouldn’t do much because it’ll cost you several thousand dollars to do so. The only time it is wise to refinance is to lower your interest rate, which saves you a ton of money in the long run.
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None, you can reduce the amount of the principle loan, however in order to get more affordable payment, you will have to refinance the loan.
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It will help to lower the principle amount owed on your mortgage loan. I would definitely recommend doing this as it will help you to pay off your mortgage faster, and reduce the amount of interest you pay throughout the loan. You can pay off your mortgage faster by continuing to make the same payments, just add in the 1x 10k payment as well.
In regards to lowering the monthly payment I’m not too sure.
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Probably not, with the exception of an adjustable rate mortgage where I’m pretty sure it would reduce the monthly payments the next time the rate adjusts.
You might be able to tell the bank you are making the next X monthly payments with this money, that way if you have financial problems later you already made advance payments and won’t be behind. Before doing this, you have to make sure that the interest charged each month is going to be based on the reduced balance. You probably have to check the terms of your mortgage contract. I wouldn’t trust what anyone in the bank tells you because those people are usually morons. I did this once on a car loan and they didn’t reduce the interest (even though it was supposed to under the loan agreement), so I had to write a letter to someone higher up to have it corrected.
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