U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 06-28-2013, 12:04 PM
 
26 posts, read 16,529 times
Reputation: 19

Advertisements

Thanks in advance for any helpful feedback to my question. I was recently pre-approved for a mortgage. The loan amount is not too large. With a 30 year mortgage, the monthly payments would be low. I like this because my job future is somewhat tenuous, and low monthly payments should protect me from foreclosure. I would like to pay off the loan quickly. Do lenders generally allow a borrower to make large extra monthly payments on a mortgage, or do they compel the borrower to change the specifics of the loan? I imagine the lender loses a lot of money through lost interest payments if I pay off the loan quickly.
Reply With Quote Quick reply to this message

 
Old 06-28-2013, 12:14 PM
 
2,091 posts, read 5,964,892 times
Reputation: 2145
Its written in the loan documents. Ask before you sign.
Reply With Quote Quick reply to this message
 
Old 06-28-2013, 12:26 PM
 
Location: Phoenix, AZ > Raleigh, NC
14,327 posts, read 17,545,228 times
Reputation: 22170
If you are getting a low that does not allow pre-payment of the principle, you need to find a new mortgage broker. Then you can make those pre-payments, but be sure to write a separate check, and mark the check "apply to principle."

Another thing to keep in mind: Don't pay the mortgage balance down until you have stashed an emergency fund for at least 6-8 months of living expenses. And personally, with interest rates as cheap as they are, I'd be putting money into an IRA or 40k or Roth LONG before I'd pay off the mortgage quickly.
Reply With Quote Quick reply to this message
 
Old 06-28-2013, 12:45 PM
 
3,322 posts, read 7,267,064 times
Reputation: 4106
Prepayment penalties, for the most part, do not exist any more. Your GFE has a box that will confirm yes or no for you.

As far as extra payments, yes you can accelerate payoff. Try this website: Mortgagesaver
Reply With Quote Quick reply to this message
 
Old 06-28-2013, 01:30 PM
 
34 posts, read 59,336 times
Reputation: 60
Quote:
Originally Posted by gvanderende View Post
Thanks in advance for any helpful feedback to my question. I was recently pre-approved for a mortgage. The loan amount is not too large. With a 30 year mortgage, the monthly payments would be low. I like this because my job future is somewhat tenuous, and low monthly payments should protect me from foreclosure. I would like to pay off the loan quickly. Do lenders generally allow a borrower to make large extra monthly payments on a mortgage, or do they compel the borrower to change the specifics of the loan? I imagine the lender loses a lot of money through lost interest payments if I pay off the loan quickly.
I was previously through Chase and now through Flagstar. Niether of those banks had a prepayment penalty. I've always paid extra principle since I bought my home in 2008. Now since I refinanced late last year with a much lower rate I've been making double payments. Although my new refinanced loan is supposed to be into paid in full in 2042, I'll have it paid off in less than 10 years at the rate I'm paying now.
Reply With Quote Quick reply to this message
 
Old 06-28-2013, 01:39 PM
 
34 posts, read 59,336 times
Reputation: 60
Quote:
Originally Posted by Pfhtex View Post
As far as extra payments, yes you can accelerate payoff. Try this website: Mortgagesaver
That's a biweekly amortization calculator. Might want to try this one.
Reply With Quote Quick reply to this message
 
Old 06-28-2013, 06:08 PM
 
3,322 posts, read 7,267,064 times
Reputation: 4106
It also incorporates extra $$ payments.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top