Posted on: 05th Jul, 2011 12:21 am
Hello there. I have taken out a mortgage recently and am due for the first payments. However, my lender has given me an option to skip my first payment. I want to do this as it would help our cash flow. Will it be a good option to skip the first mortgage payment?
As far as I know, the option of missing the first payment is not a very good option.The interest that you do not pay for the month will be added to the loan. The borrower, i.e. you, will be liable for paying the interest on that amount for the life of the loan. Thus, your interest payments will get increased.
Grace, there must have been a deeper explanation given to you about this skipping of your first payment. Have you any details in that regard? Obviously, that'll benefit you in making this decision.
I can't disagree with Niicss' assessment of the situation - that it'll cost you additional interest over time, which is counter-productive in the long run. Nevertheless, I see your point in seeking a benefit to your cash flow.
Get more information from the lender if you need to and use that to make your decision.
I can't disagree with Niicss' assessment of the situation - that it'll cost you additional interest over time, which is counter-productive in the long run. Nevertheless, I see your point in seeking a benefit to your cash flow.
Get more information from the lender if you need to and use that to make your decision.
Thank you George and Niicss! I will definitely have a word with my lender.
You're most welcome, Grace.