Question by SYSMatrix: Will mortgage advance payment lower current payment schedule?
I am thinking for refinance now. The mortgage loan agent says whenever I do mortgage advance payment, my next month’s mortgage will be recaculated based on the new princial (old prinicial – the total of advance payment)
Is that true?
Answer by Steve
YES IT IS,AN ADDITIONAL PAYMENT ONCE A YEAR CAN CUT YOUR LOAN’S LIFE BY 8 YEARS.ONLY IF YOU HAVE A FIXED LOAN AND IS NOT INTEREST ONLY. TRY TO PAY 13 PAYMENTS EVERY YEAR AND YOU WILL SAVE SO MUCH AT THE END.
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