Paying off a loan quicker?
by Mortgage Rates on Tuesday, November 16th, 2010 | 5 Comments
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depends on your loan. look at the details because some have early pay penalties but some dont.
not at all
When you pay more on your mortgage, it goes towards your principal, and that definitely will pay off your mortgage faster. My mortgage is only $472 a month, and I pay $550 every month. I am saving thousands of dollars by paying off the mortgage faster. When your mortgage is new, most of the money you pay goes towards the interest. By paying extra each month, it helps the principal go down too, which is how you will save a lot of money.
Yes you can unless there is a clause in the contract that says you can’t.
You can usually pay off any loan that way, so if you have credit card debt pay off the highest interest one off first. It will save you the most money in the end.
If you have an open end contract which most mortgages are, you can pay it down without being penalized. You should call your mortgage co and request an amortization which will give you a complete break down between interest/principal. If you have a 30 years mortgage, you pay about 70% on the first 15 years on the mortgage. That’s how the banks make their money.