Paying Down Your Mortgage



When the situation arises that you have a lump sum of cash to pay down your existing mortgage,  there may be different options available.  Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same.

Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and interest payment but leaves the term intact with the same payoff date.

The interest rate on the mortgage will stay the same regardless.  Prepaying principal can be done at any time but may not be applied until the next payment date.  Recasting cannot be done within the first 90-days of a mortgage.

Pre-paying principal is like driving faster on a trip to a specific destination to get you there sooner.  Recasting/Re-amortization gets you to the destination at the same estimated time of arrival but using less fuel.

Most loans allow you to pre-pay principal, but recasting is not allowed on FHA, VA, and GNMA.  If you have a conventional loan, check with your lender to see if it is possible.

Contact your mortgage servicer for specific information on pre-paying or recasting your mortgage before acting.

Comments

  1. Two casinos started using their companies from the primary day and others joined in somewhat quickly. In fact, casinos wanted to add extra tables due to the of} huge recognition that Ezugi games initially had. Live Dealer roulette is identical recreation that you'd find in any retail casino, but simply as with blackjack, all bets and payouts are made digitally, so the action strikes much faster. Bet minimums are typically decrease in Live Dealer roulette than they'd be in a retail casino, sometimes beginning as low as $1. Once a free seat opens up, you’ll be asked if you’d like to join the principle table. Even if you end up} sitting at the table, although, have the ability to|you probably can} nonetheless select to wager 카지노 behind other gamers if you’d like.

    ReplyDelete

Post a Comment

Popular posts from this blog

Your Refund Could be the Difference

Cost of Waiting to Buy in Both Price and Interest Rates

Price of Paradise