Posted on: 26th May, 2010 02:25 pm
We bought our house at a low price for the area we live in,but the equity has dropped $10,000 below what we own on our home.
We have $12,000 cash to put towards our house.
Is there a way to lower our Monthly payments, using this cash?
We currently have fixed 30 apr at 5.5%
We have $12,000 cash to put towards our house.
Is there a way to lower our Monthly payments, using this cash?
We currently have fixed 30 apr at 5.5%
Welcome maliski,
You can pay the cash that you have in hand towards your mortgage. This will help you in paying down a part of the loan and build some equity. As far as the lowering of the interest rates are concerned, that will be the lender's discretion.
You can pay the cash that you have in hand towards your mortgage. This will help you in paying down a part of the loan and build some equity. As far as the lowering of the interest rates are concerned, that will be the lender's discretion.
maliski, the likelihood that a lender would modify your loan to reduce payments is pretty slim. what would actually end up happening is that you'd simply be able to pay the entire debt off earlier by making this large payment. you could, perhaps, refinance the existing loan in order to reduce your payments, but that's another transaction entirely.
