Can my monthly mortgage PMT be recalculated if I apply a significant amt of principal to what I current?
by Mortgage Rates on Sunday, September 19th, 2010 | 4 Comments
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No, that isn’t the way it usually works. Payment remain set by the original mortgage agreement unless modified.
You can ask — before you make the payment.
The only way to reduce your mortgage payment is to refinance for a smaller amount or a lower interest rate.
Lowering your balance by $6000 wouldn’t make much of a difference in the payment anyway unless you have a very high interest rate.
Not normally. That 6000 will either be considered a prepayment of future payments OR can be applied directly to the mortgage principle and it will lessen the length of your note. However a complete recalculation of your monthly payments AFTER the $6000, is technically a refinance.
Call the lender and ask them what it would take to change the PMI. Not only is the loan amount considered, but your credit helps determine the amount you pay. If it’s less than 2 years since you got the mortgage, I wouldn’t expect anything to change no matter how much you pay down the mortgage.