Posted on: 04th Mar, 2013 01:20 am
Will paying a good amount toward the principle would decrease the interest rate?
Hi BenZu,
Paying a good amount toward the principal won't decrease your mortgage interest rate. However, it may help you eliminate the PMI and, of course, reduce total interest paid through the life of the loan.
Thanks,
Jerry
Paying a good amount toward the principal won't decrease your mortgage interest rate. However, it may help you eliminate the PMI and, of course, reduce total interest paid through the life of the loan.
Thanks,
Jerry
hi benzu!
welcome to the forums!
i agree with jerry that paying a good amount toward your principal amount won't decrease your mortgage interest rate. if you wish to lower your mortgage interest rate, then you will have to refinance your mortgage.
feel free to ask if you've further queries.
sussane
welcome to the forums!
i agree with jerry that paying a good amount toward your principal amount won't decrease your mortgage interest rate. if you wish to lower your mortgage interest rate, then you will have to refinance your mortgage.
feel free to ask if you've further queries.
sussane
If you pay more towards principal, the interest rate on the loan may not be reduced, but your monthly mortgage payment may be lower.