Posted on: 27th Mar, 2010 07:35 am
I have a 5%, 15-year loan with outstanding balance of $130,285. Monthly payment is $1,075.48. What will be a result if I pay down the balance with a one-time principal payment of $10,000?
You would have an extra 10,000 in equity and you would have less money to owe on the house. It would also be 10,000 less dollars that your interest rate wouldn't apply to. If you have the extra money i'd put it on the house.