Posted on: 26th Sep, 2009 03:34 am
I was wondering. if I have a 30 year fixed mortgage with a minim payment of let's say $ 1000, paying more than that every month will reduce also my minimum payment over the months like an auto loan or will only let me repay early?
no it does not reduce your monthly payment requirement. it saves you money and time.
your monthly payment will remain same until you are not paying your mortgage completely.
By paying extra, you do not need to pay for 30 yrs. Mortgage Tenure wil go down but it depends upon extra amount that you will be paying.
Forget one point. Check your deed as well. Your Mortgage lender may charge some penalty in case of prepayment.
By paying extra, you do not need to pay for 30 yrs. Mortgage Tenure wil go down but it depends upon extra amount that you will be paying.
Forget one point. Check your deed as well. Your Mortgage lender may charge some penalty in case of prepayment.
the likelihood of a prepayment penalty being in place when you are adding extra to your regular payment is infinitesimal.
go ahead and check your documents, but please don't worry.
go ahead and check your documents, but please don't worry.
It will reduce your terms of the payment, but your monthly payment remains the same
But You cna reduce yoru monthly payment by refinancing at the same rate after makign soem extra payment
But You cna reduce yoru monthly payment by refinancing at the same rate after makign soem extra payment
Your payment will be reduced if your mortgage is an Interest Only loan and If your loan is a traditional 30yr. Fixed then you will be just reducing the principle and the payoff, the monthly payment will stay the same.
That is a good addition