Question by MTERA: Will my monthly mortgage lower, without refinancing, if I pay in lump-some?
If I have a loan of 200k started say last month and my monthly mortgage is 700, and I pay off 50k in one lumpsome amount next month, will my mortgage be lower than 700 automatically without refinancing?
Is it different for any of the mortgage programs, 30 yr fixed, 7/1 ARM.
Answer by banananose_89117
First thing is you need to check and see if there is an early buy-out clause!!!!
When you pay extra, you must tell the mortgage company you want that money to go toward the principle. Do not presume it will automatically.
And you mortgage does not change with the lump sum unless you refinance.
What do you think? Answer below!