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re: Trying to make twice a month mortgage payments
Posted on 3/12/16 at 12:25 pm to Oenophile Brah
Posted on 3/12/16 at 12:25 pm to Oenophile Brah
quote:
I think you would have to pay ahead one month before they would allow you to make 1/2 payments. If you're due March 30, they're not going to accept 1/2 on the 15th and 1/2 on the 30th.
In my experience.
I don't believe that process would speed your interest pay-down anyway.
Thanks for the response.
Can you explain why it wouldn't help pay down more of the interest over time? I have read some things saying it would help.
1
Posted on 3/12/16 at 1:33 pm to Stingray
quote:
Can you explain why it wouldn't help pay down more of the interest over time?
1. Technically you don't 'pay down' interest as interest is always accruing as long as there is a principle balance.
2. Paying down any principle faster than your regularly scheduled 360 payments (assuming a 30 year term) will decrease the amount of interest accrued, thus lowering the amount of interest you would pay over the life of the loan (again vs. if you made your regularly scheduled 360 monthly payments).
3. Interest will always accrue at the same rate as laid out in the note, the only difference is the amount of principle that the interest is accruing on.
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