Posted on: 12th Aug, 2009 12:18 pm
Is it true that i can lower my mortgage balance by paying extra to my principal?
That is true. If you have extra monies remaining at the end of every month or every few months, you may apply additional dollars to your principal balance. Note on the check that this amount will be applied toward your principal balance. With just an extra payment or 2 a year you will reduce the years your holding this loan significantly. I hope this helps...
and there's no need to wait until the end of the year or anything like that. if you begin immediately prepaying the principal balance, you'll see substantial savings. add any amount each month, but try to make at least one extra full monthly payment every year. you could shave a 30 year loan down to 19 or 20 years.
janetnurse
If your allows, you cna make extra monthly payment and star reduceing yoru principal and also in the logn term you will pay less in intrest.
Indirectly you are building equity in the house ( If the vavlue of property does not go down due to makrket conditions)
Good luck and feel free to ask
If your allows, you cna make extra monthly payment and star reduceing yoru principal and also in the logn term you will pay less in intrest.
Indirectly you are building equity in the house ( If the vavlue of property does not go down due to makrket conditions)
Good luck and feel free to ask
You can do part payment to reduce the principal amount.
In that there are two scinarios-
1) you can reduce tenuare-(number os years)
2) you can reduce EMI amount- (monthly amount)
In that there are two scinarios-
1) you can reduce tenuare-(number os years)
2) you can reduce EMI amount- (monthly amount)
Actually while in this present recession the interest rates are coming down its advisible to reduce princlipal amount it will be getting long term benefit.
ok
incredible....
