 Sam
Site Admin
Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
117.49 Dollars($)
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 Posted: Wed Jan 26, 2005 3:16 am Post subject: Will my monthly payment always be the same? |
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If you have locked in for a fixed rate mortgage your mortgage payments will not change over your term. But if it's an adjustable interest rate that you have opted for, the rate adjusts every month according to the market position.The monthly payment can also change if you opt for any payment method like:
- Interest only mortgage -You may pay only the interest for a set period of time and the principal for that time is carried over to your loan balance.
- loan modification - You can request your lender for a new payment plan. This could be in any of the following ways:
- Change the interest rate - This is calculated by adding 0.125% to the current rate.
- Change the term - The period of time the loan is locked-in for can be increased or decreased with the monthly payments accordingly changed.
- Change the loan type - You can shift to a loan type which suits your present financial parameters.
- A combination of all the above.
Remember every time you refinance request for an amortization schedule. This would give you a better idea about the monthly payments you will encounter. |
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