Posted on: 10th May, 2011 10:59 am
I am stuck in a 30 year upside down mortgage. I was told by loan officer that if we pay more per month on our mortgage it will be the same as changing it to a 15 year fixed.
Similar. If you look at "http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx" you can input bi weekly payment, add extra payments ect. You will knock off a few years, but the more money you put into it, the faster you will pay it down. You need to verify that you don't have an acceleration clause in your note, basically like a prepayment penalty. Contact your lender and make sure that you can pay extra payments, ask how they are applied, and the best way to document your extra payments.
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Most prepayment penalties deal with someone paying a mortgage loan in full early, but your circumstance of paying an additional sum to principal on a monthly basis would likely mean you're not going to be subject to a penalty, I'd have to surmise.
By all means, check with the lender directly, though, to ensure that there's nothing preventing you from continuing your plan.
As noted above, the greater your principal payment each time, the faster you'll see the benefit of the prepayment. It's a wonderful idea, and you should keep it going.
By all means, check with the lender directly, though, to ensure that there's nothing preventing you from continuing your plan.
As noted above, the greater your principal payment each time, the faster you'll see the benefit of the prepayment. It's a wonderful idea, and you should keep it going.
