Posted on: 15th Aug, 2009 03:41 am
If interest is accrued daily. Would paying your monthly mortgage at the beginning of a bill cycle decrease what you are paying in interest monthly?
Thanks for your answer.
Billy H
Thanks for your answer.
Billy H
not necessarily billy. if you are working with a conventional or fha mortgage, you're paying interest in arrears. that means your september 1 2009 payment includes interest that your lender has earned in august of 2009.
if you have a simple interest plan, which is rare in the mortgage industry, you can do what you have noted.
if you have a simple interest plan, which is rare in the mortgage industry, you can do what you have noted.
Hi Billy,
I think it does not make much of a difference if you are making the payments at the beginning of a bill cycle. It does not save you that much of an interest. What is more important is whether you are making the payments on time. If you are making late payments, you will have to pay more in interest. The more late you pay, the more interest that accrues on your mortgage on a daily basis.
I think it does not make much of a difference if you are making the payments at the beginning of a bill cycle. It does not save you that much of an interest. What is more important is whether you are making the payments on time. If you are making late payments, you will have to pay more in interest. The more late you pay, the more interest that accrues on your mortgage on a daily basis.
I THINK WAHT SAVOR IS SAYING IS RIGHT.
I WANT TO ADD ONE THING IN THAT IS AT THE TIME OF PARTPAYMENT LENDER ARE ALSO TAKE THE INTEREST INTO CONSIDERATION.
I WANT TO ADD ONE THING IN THAT IS AT THE TIME OF PARTPAYMENT LENDER ARE ALSO TAKE THE INTEREST INTO CONSIDERATION.
litisham, your post is confusing...i assume "partpayment" means "partial payment" but what do you mean, precisely, by stating that the lender will "take the interest into consideration"?