IF You write principal only on every monthly mortgage check on a regular 30 year fixed loan. Do you pay early?

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2 Comments
  1. Reply
    old66
    April 30, 2011 at 1:05 am

    Not going to fly. You are obligated to make monthly payments with interest included over the 30 years. In some cases you can send more than the amount or an extra check with a principal only & you will pay off early & save great amount of interest. If you have a loan around ^ 5 this is the same as gaining this interest on your savings, but no cash flow, could be a bummer.

  2. Reply
    Mudisfun
    April 30, 2011 at 1:23 am

    Take out the loan docs you were given at your signing and find the page that says “NOTE” and read it. It will explain (in more detail than you would ever want to know) the re-payment of your loan. If you look through all of the other documents you’ll find something along the line that sending in a check saying “full and final payment” etc… will have no effect on your loan; the lender can apply your funds however they choose to basically as long as they follow the ground rules obtained in the note.

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