Posted on: 01st Apr, 2009 07:57 pm
Our question involves a daily simple interest loan..
Our current principle balance is $115,002.53
We have a 5.9% fixed rate on a 30 year loan
Currently our unpaid interest is approximately $27,000
What do we need to do to pay down our principle and interest in order to pay off our loan in the remaining 23 years....
How do we word this to the mortage company in order to get this accomplished?? ie...Should we apply 50% of our over payment to principle and 50% to interest, should we make bi-monthly payments?...We have been doubling our payments, but want to do this the right way.....
any help you could offer will be greatly appreciated.
Our current principle balance is $115,002.53
We have a 5.9% fixed rate on a 30 year loan
Currently our unpaid interest is approximately $27,000
What do we need to do to pay down our principle and interest in order to pay off our loan in the remaining 23 years....
How do we word this to the mortage company in order to get this accomplished?? ie...Should we apply 50% of our over payment to principle and 50% to interest, should we make bi-monthly payments?...We have been doubling our payments, but want to do this the right way.....
any help you could offer will be greatly appreciated.
Hi bobomoz,
You can start making some payments towards the principle balance. This will help you in reducing the principle balance and paying off the mortgage quickly. Moreover, I think bi-weekly payments are also a good option in your case. Biweekly payments would help you to pay half of the monthly mortgage payment every 2 weeks. This would result in faster payoff and lower overall interest costs.
Thanks
You can start making some payments towards the principle balance. This will help you in reducing the principle balance and paying off the mortgage quickly. Moreover, I think bi-weekly payments are also a good option in your case. Biweekly payments would help you to pay half of the monthly mortgage payment every 2 weeks. This would result in faster payoff and lower overall interest costs.
Thanks