Pay off mortgage early to reduce interest?

In: Mortgage Payment

27 Jul 2010

Suppose you get a mortgage for, say, 30 years old, and you make monthly payments (principal and interest) for say 4 years. Then in year 5 you inherit a lot of money to a family member. Can you pay the remaining capital to prevent the bank that paid the remainder of the interest? Or if you get a mortgage, you have to pay 15 or 30 years interest rates?

Depending on the loan you made origianlly.
If you have loans, such as:
ARMS, options, interest only, 5.5 or 1.5 ’s, and the mortgage scammy style, you have committed an advance payment of any kind.
They have the advantage of low interest rates – banks are not there, you can get promotional gifts.

If you regularly 15 or 30 years fixed rate – so you can pay for your capital as much as you want.
Always contact the lender and ask if you need additional payments of principal and can ensure that they go to the principal and not to stop as regular payments only for payment on your loan.

Many, many people have paid their mortgage early.
This is something everyone should try.
Write two checks. One for the regular payment, and another with a note “for” only the capital.



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