Posted on: 24th Oct, 2013 01:51 am
I have received an inheritance. I now want to use the money to pay down my principal mortgage balance. Is there a limit to principal mortgage balance payment?
Hi Korya,
I haven't heard of any annual or monthly limit regarding principal balance payment. But when you make the payments, you should inform the lender that the payments should go toward the principal balance.
Thanks,
Jerry
I haven't heard of any annual or monthly limit regarding principal balance payment. But when you make the payments, you should inform the lender that the payments should go toward the principal balance.
Thanks,
Jerry
Welcome Korya,
I, too, haven't heard of any such limit. You should sign an agreement with the lender and make sure that the payment goes toward the principal amount and not toward the interest payments. This will help you lower your mortgage balance and you will be able to pay off the mortgage ASAP.
I, too, haven't heard of any such limit. You should sign an agreement with the lender and make sure that the payment goes toward the principal amount and not toward the interest payments. This will help you lower your mortgage balance and you will be able to pay off the mortgage ASAP.
Yes, you can pay back as much principal balance as possible, but make sure that there is no penalty for doing so. It is therefore advisable that you go through your loan agreement before making any such payment.