ShirlD
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Your mortgage payment stays the same over the life of the loan until paid off or refinanced.
If you pay more than the amount due each month (i.e. 1200 instead of 1100) there will be fewer payments, but not lower payments.
Go to bankrate.com and check out their free mortgage payment calculators. You can change the various inputs, such as payment, interest rate, etc and see how each number affects your payment.
Many online calculators also break down your payments into an amortization schedule which will allow you to see how much of your payment goes to principle vs. interest.
It is a very eye-opening experience. I really recommend it. |
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curmudgeon
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In a conventional mortgage, the payments stay the same. In the beginning more goes toward interest, later on more goes to pay off the actual loan. |
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ditsyquoin
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You need to do some research on how mortgages work and I've included a fine resource in the link below. Follow the link that says pre-payment of principle.
If you in the first years of your loan, you are primarily paying the interest off. Extra payments on the principle will not reduce the monthly payment but will reduce the number of payments you need to make. |
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Allen R
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The note will remain the same but how its applied to the mortgage does change. At the beginning you pay mostly interest close to the end you pay mostly printable. |
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frugernity
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The amount of the monthly payment will stay the same but every month a larger percent of the payment will be applied to principal and a smaller percent will be interest. |
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Floyd B
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The mortgage payment stays the same.
The amount for interest goes down a little after each payment as you owe less.
The amount applied to the principle goes up a little after each payment. |
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dragonrider707
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Not really no. One way to pay a mortage off faster though is to pay it every two weeks instead of every month. There is an extra week paid off every year then and it comes off the principle not the interest like the other payments do. It doesnt seem much but it can knock off 5 years or so from your payments. |
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eddygordo19
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No. It stays the same. As time passes, the interest component will get smaller and the principal will increase. |
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mortgage help
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The payments will stay the same... they are based on the original loan amount you took out, regardless of how much principal you pay down. There are loans available that "re-cast" every time you make a payment. They are typically mta loans and interest only loans. Your payment is based off what your outstanding balance is, and NOT off of your original loan amount.
more info on mta loans, http://www.choicefinance.net/mta-option-arm.htm
more info on interest-only loans, http://www.choicefinance.net/interest-only-loans.htm |
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roguetrader2000
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If it's a fixed 30 year mortgage, your payment never goes down.
If you pay part of it off, more of each payment goes to principal and less to interest, so you will pay it off in less than 30 years.
You will need to refinance to lower your payment. |
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kingstubborn
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No, the amount of interest that makes up your payment decreases and the amount of principal you are paying against increases. |
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szydkids
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Only if you refinance it at some point. Otherwise, the payment stays the same and the maturity date moves up (the loan is fully paid sooner). |
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Kathy C
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You need to look at your Mortgage statement, It will show you how your monthly mortgage payments are broken down, If it's at the beginning of your mortgage, then most of the 1100. will be applied to interest. and about 120, towards your principal, Each month, if you can afford to apply extra cash towards your principal, do it, that will help you to pay your mortgage off quicker. Make sure you note on your payment that the extra cash is to be applied to your principal. |
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