Mortgage Principal?

Question

If I would send in 10 dollas a week on my Principal will that knock my Interest down weekly or should I just add the 40 dollas every month on my Principal. What is the best way to not have to pay the whole 30yr. Mortgage.

P.S.

New Home

Answer 1

weekly-the faster the money is applied the fastr the principal is reduced, thus reducing interest.

Answer 2

There is a method that you can use if you are financially disciplined enough and are able to control yourself with an open line of credit. This method originated in Australia and has now come to the US as a means to payoff you mortgage in as little as a third of the time without having to make extra payments.

The basic concept behind it involves shifting funds between a HELOC and mortgage balance. It can also be done with a modest savings account for those who don't qualify for a HELOC. The program can reduce the daily balance on your loan which will lower the interest and accelerate your payoff date up to as little as a third of the time.

There is a free video you can watch about how the system works here. It's actually a pretty simple concept and it works real well if you are looking to payoff your mortgage in the fastest time possible. Check out more about it at this website here: http://www.mortgagemagicsoftware.com

Answer 3

http://www.u1stfinancial.net/frizzell

Answer 4

Just send in with your monthly payment. If you make 1 extra mortgage a payment year directly towards your principle balance it will knock off 6-7 years off the mortgage. Or you can enroll in a bi-weekly where they will debit half your payment every 2 weeks which will knock the same amount of time off, you can also add additional principal to that in order to pay it down even quicker.

If you want a bi-weekly program let me know. I have a company that does it for a lifetime, so if you refinance 5 times all you do is tell them the new lender and they will send the payment to them....alot of companies will make you pay for another program.

You can shoot me an email at my yahoo account

Answer 5

It used to be, years ago, that if you wanted money to go toward the principle, you had to send a separate check.

Federal lending laws have changed that about 15 to 20 years ago.

Anytime you pay money more than the current mortgage due, as long as you have no outstanding fees or escrow shortfalls, the money MUST be applied to principle.

Answer 6

Prepaying the principal doesn't decrease your interest rate or decrease your required monthly payment.  It will pay off the loan sooner.