# Can 1 extra principle mortgage payment per year reduce a 30 year loan to a 15 year loan?

1 extra mortgage payment..** principal & interest**
can lower your term to about 19 years.

### How much money and time do you save paying an extra monthly payment to principal on a 15 year mortgage?

In general you will reduce the payment by one month for every month's principle you pay ahead. It would take about 8 years. There are many online mortgage amortization calculators available. You will need also the percentage rate.

### Do voluntary mortgage payments get recorded as principle AND interest or principle only?

Not sure about U.S.A. loans, but in Canada, if you pay extra towards your mortgage, the entire payment goes towards the principle only. This is, of course, assuming that your mortgage agreement doesn't state otherwise, and that you are current in your regular required payments.

### Can you pay extra money on the principal of your home mortgage?

With most home mortgages you can make additional payments without a penalty. In fact making one extra payment a year can reduce a 30 year mortgage to around 21 years.

### If you make extra mortgage payments is the extra principle applied to the end of the loan thereby eliminating end-of-the-loan payments?

The principle payment(s) are applied as you make them. Reducing the number of monthly payments. Instead of paying for 180 months you might only pay for 72 months. Your original payment amount stays the same, you just don't pay as long.

### How much does an extra payment a year knock off a 30 year mortgage?

If I send in an extra payment a year or 2 extra payments a year how much time would that knock off my 30 year mortgage?

### What is an extra payment mortgage calculator used for?

In most cases one has the possibility to make extra payment on a loan. By doing so the loan gets paid back earlier and one saves interest payments. An "extra payment mortgage calculator" calculates those savings.

### Can you just make one extra mortgage payment a year?

Yes, but it would be better if you can divided the extra payment into each mortgage payment through the year instead of waiting until the end of the year to make one extra payment because you will be lowering the principal as the year progresses which lowers the interest accrued.

### How can you lower the principal owed on your mortgage?

You can reduce the principal by making extra payments toward the principal each payment cycle. Ask your lender how best to do it and make certain the amount is deducted from the principal. You can reduce the principal by making extra payments toward the principal each payment cycle. Ask your lender how best to do it and make certain the amount is deducted from the principal. You can reduce the principal by making extra payments… Read More

### What is the fastest way to pay off the house mortgage?

Collect your money, make sure you're organized. Having a well-paid job will do you good. Make sure that you are absolutely confident in what you're paying for, and once you've got a good job and have saved up enough, pay. Those are all very good ideas, plans and habits but the way to pay off a mortgage more quickly than normal is to pay extra on the principle with every payment. Make certain the extra… Read More

### Can you reduce the principal amount on a second mortgage?

Anything you pay over your monthly payment goes right to principal. So pay a little extra every month and you will reduce the principal amount. You could also refinance your first and second into one, and pay what you pay between the 2 now assuming your payment would be lower.

### Why is there more interest paid at the beginning of a loan period than at the end?

In a simple interest loan, you are paying interest on the amount of money you have borrowed in each payment period. When you make a payment, a certain amount of it goes to repay the loan, reducing the principle. In the next payment period, your interest is being calculated on a smaller amount borrowed. In the first payment, you are paying interest on the entire amount borrowed. In the next payment, you are paying interest… Read More

### How to make extra mortgage payment to principal?

Include the extra payment to your monthly payment and designate on the payment coupon the amount that is to be applied to principal. If it doesn't have a space for that, it's ok. Any additional amount you pay will be applied to principal.

### How can you pay your mortgage off early?

By reducing the interest you pay. The only way to do this safely is to pay extra toward your principle. There are many schemes being sold to pay your loan off early, but no one ever seems to know anyone who ever made them work. The most successful homeowners trying to pay their loans early either simply send extra payments or pay the loans every two weeks. Mortgage payments are due monthly but most people… Read More

### What would be preferable to retire a loan towards the end of its term or much before?

The earlier you can retire a loan, the more money you will save in interest. Assusming it's simple interest, in the first years very little of the payment is going to reduce the principle. Toward the end of the loan term, most of the payment is going to principle and very little to interest, so the benefit of paying it off early at that point is limited. On a long term loan like a home… Read More

### A bi weekly mortgage reduces the term of a thirty year mortgage to how many years?

By making half of a monthly mortgage payment every two weeks, homeowners can save a substantial amount of money over the term of a mortgage loan. Typically, if a homeowner pays half of their monthly mortgage payment every other week, they will reduce a 30-year fixed-rate mortgage by approximately seven years. The reason is simple: instead of making 12 monthly payments, homeowners are making half a payment every two weeks, resulting in 26 half payments… Read More

### What is forebearance in a mortgage?

Forebearance is a payment plan that allows you to catch up on money you owe your lender. You must be able to make your normal mortgage payment in addition to the extra amount that you and your lender agree upon.

### What methods are there to shorten the length of mortgage payments?

Paying extra money to the mortgage at each payment will shorten the length. Consulting the mortgage lender for more information is important, as some apply penalties if too much extra money is paid.

### Does making one extra principal payment a year to your mortgage greatly reduce the length of the loan?

Yes, this is GURANTEED SAVINGS of time and money. For example, I know of a family who were in their mid-forties. They decided to make the incremental equivalent of an extra payment per year, to principal only, by increasing their monthly mortgage payment by 1/12th--a mere $153 in their case. Their discipline saved them $114,837 in interest and 85 payments! NOTE: You save more time and money when you reduce your principal balance earlier in… Read More

### Does making two extra principal payments a year to your mortgage greatly reduce the length of the loan?

Yes it would but if you pay just R100 extra each month,it will reduce you bond with a few years

### Does it benefit you if you have an interest only loan to pay extra toward your principle?

Yes. The interest only loan is simply that. You are only paying the interest on your loan. None of your payment is going toward the principle loan amount. The main advantage of an interest only loan is the drastically low monthly payment that you make compared to a traditional mortgage. Most of the interest only loans are based on a 10yr. term and MUST be paid off at that time. Most borrowers refinance at the… Read More

### What does one need to do to pay off their mortgage early?

To pay off one's mortgage early, it can be just as simple as making a little bit of an extra payment. If one's payment is $1450 a month, rounding it up to $1500 can save a few extra months on a 30 year mortgage. For a specific example, a 200,000 mortgage at 5% for 30 years, paying just $100 extra per month reduces the number of monthly payments by 62, or 5.17 years, and reduces… Read More

### How can I pay off mortgage fast?

You can pay off your mortgage fast by making large extra payments or paying a large extra amount with your mortgage payment. For example, a $150,000 mortgage at 5% for 30 years, paying $300 extra per month reduces the number of monthly payments by 159, or 13.25 years, and reduces the interest and total paid by $68,321.30. If you want it paid off sooner, paying $600 extra per month reduces the number of monthly payments… Read More

### If you make extra mortgage payments in a given year can you then write off the additional interest against that year's taxes?

No. The extra mortgage payments, over and above your normal monthly payment, are generally directly applied to Principal only. It is entirely allowable to make your January payment in late Dec.....and as tax essentially uses the cash basis, if this 13th payment is received by the Lender in year "X", you may get a 13th interest deduction on your 1099 Mortgage statement. While most mortgages allow prepayment without penalty, that prepayment is entirely principal, basically… Read More

### What does extra mortgage payments do?

Do you mean paying MORE than your minimum payment? Paying more than your minimum payment is a good idea on your mortgage, if you can afford it. It will decrease the amount of time you have your mortgage and lower the overall amount of money you end up paying towards interest. Paying extra on your loan creates more savings the earlier you do it. Example: On a 300,000 loan at 5% for 30 years, paying… Read More

### Which is the fastest way to pay off a loan?

The more money you pay to principle, the less interest you pay on the remaining amount. So, you want to add a few dollars to each payment against the principle. Make sure that the lender is applying the extra amount correctly. Other than that, try to reduce expenses in any areas where the bills aren't fixed amounts and send that money toward what is owed.

### I have 12 years left on a 15 yr mortgage. I have been paying extra each month that is the total of 1 principle payment per year. How much should this reduce the term of my loan?

It depends on your interest rate. If your rate is 5% the loan will be paid off 1.5 years sooner tahn the 15 year term, so term is reduced by 18 months, assuming you have been doing this from the beginning of the loan. If interst rate is 7% term is reduced by about 22 months; at 4% by 17 months.

### Will paying extra on mortgage principal lower monthly payment?

Generally no. If you pay extra on the principal you will pay off the loan earlier, but your monthly payment will stay the same. If you want to lower the payment, you will need to refinance. But paying extra will help you payoff your loan faster and can save significantly on the interest paid. For example, a 300,000 loan at 5% for 30 years, paying just $200 extra per month reduces the number of monthly… Read More

### How do you pay yoru mortgage off in 7 years?

First, check to see if there will be a penalty for paying off the mortgage early. Then, visit your bank and ask them to figure out how much extra you would need to add to your payment each month in order to pay the debt in 7 years. Make certain you keep a good record of your payments attached to each monthly payment.

### What is surplus disbursement?

Good question. I just got a $5,000 dollar check in the mail and not sure if I should cash it. Its titled as a "surplus disbursement". The problem is its coming from my home mortgage company. Why would they have extra money? wouldn't any extra just be applied to the principle?

### Is it better to pay off the interest or the prinicipal on a loan first?

Make your payments on time and pay as much extra on the principle. That will drop your interest as well. On most payment plans, you are paying the interest first and nothing on the principle. Put as much as you can into it and get it paid off quicker and cheaper.

### How can you reduce your car loan?

If you mean how can you reduce your monthly payments, you can refinance at a better interest rate or refinance for a longer term. If you mean how to amortize your loan over a shorter period, pay an extra amount on top of your standard loan payment. Beware of early payment penalties if you pay off your loan early. Check with your lender to be sure there is no prepayment penalty.

### How soon can you put money on the principal if you just bought a home?

You will add money to the principal in your first payment. It will be a small amount, but that is when you start. Your statement should show how much the bank puts toward principal and how much goes toward interest. Over time, more money will be applied to the principal. You can also make an extra payment or payments during the year; you just have to specify that you want it applied to the principal… Read More

### If a double principal is paid on a mortgage will it be paid off quicker?

If you plan to stay in the home for a long time extra payments toward the principal can reduce the payback time by years depending on how much you pay.

### Why do interest payments decrease each month and the principal payment increases?

Mortgages are typically "front-loaded." That means the interest is paid more aggressively in the beginning of the life of the loan than the principal. As the loan matures, less of your payment is devoted to paying the interest on the loan and more is applied to your principal balance. It is important to mark extra payments as being toward the principal, otherwise your mortgage servicer may apply any extra payments as an additional monthly payment… Read More

### Is it better to pay additional principal or additional interest on a home mortgage?

I'm not sure it's possible to pay additional interest on a mortgage, unless your mortgage company made a mistake and charged you too much. Your interest payment is calculated by your loan servicer, and you technically can't pay EXTRA interest. Any excess money you pay on your loan will go towards the principal, which is always a good idea, if you can afford it.

### How much down payment one should pay 20 percent 40 percent or 60 percent of the purchase price of home?

It depends on where you live and how much you can afford. In general, it's a good idea to pay down your mortgage as quickly as you can. Current mortgage rates are at about 6.5%. Some people will advise you to invest that money in the stock market instead, given the historical returns of about 10%. However, if the housing market collapses, then you'll be out of both your home AND all your money. Put… Read More

### Can the bank come after me for money if I have forclosed already?

Yes, DEFINITELY, the banks will come after you if you default on the mortgage payments. Even I'm upside down with my current home value but I'm trying to work with my lender where they have agree to reduce my interest rate. Now I'm going to put this house on rent and generate some extra income out of it to pay my mortgage.

### Does making extra principal payments to your mortgage have any affect on your credit rating?

Yes, it will shorten the time in which the mortgage is on your credit report.

### Where can one find a mortgage calculator that allows extra payments to be made?

Your money page dot com is one of many places you can find a mortgage calculator online to calculate extra payments. Another place to check is mortgage calculator dot info. There are many choices online to pick from.

### How do you pay off your mortgage faster?

You can pay off your mortgage faster by paying extra to the principal typically through making extra payments or paying extra each month. For example, a $200,000 mortgage at 5% for 30 years, paying $200 extra per month reduces the number of monthly payments by 104, or 8.67 years, and reduces the interest and total paid by $61,160.51. On the same loan, paying $300 extra per month reduces the number of monthly payments by 135… Read More

### How do you avoid mortgage insurance?

Avoiding mortgage insurance usually requires having sufficient equity so the lender doesn't require it. Mortgage insurance comes in two major forms. Private mortgage insurance, or PMI, is provided by private companies on conventional mortgage loans with balances over 80 percent of the home's value. Mortgage insurance premium, or MIP, is required on FHA loans. FHA requires both up-front MIP and monthly MIP. Mortgage insurance may be tax-deductible, just like mortgage interest is. Sponsored Link American… Read More

### Where can one find a free mortgage calculator online?

Free mortgage calculators can be found on the following websites: "Bankrate", "Right Move", "Money Extra", "Scotia Bank", as well as "Mortgage Calculator".

### When you pay your mortgage payment there is alway extra added to it why is this?

Any extra charges should be identified on your bill. It may be an escrow amount that will go toward insurance and property taxes. Any extra charges should be identified on your bill. It may be an escrow amount that will go toward insurance and property taxes. Any extra charges should be identified on your bill. It may be an escrow amount that will go toward insurance and property taxes. Any extra charges should be identified… Read More

### Is the extra payment always applied toward principal?

No, it isn't, you need to make it clear either by phone, or on the payment, that you want the extra to go towards your principal, and not towards interest, or any other packages you may have in your loan. It's best to make a phone call to make sure they allow you to do this, and to get it in your file. Then each time you pay the extra show it on the payment… Read More

### How much of mortgage payments goes to principal?

Amortized mortgages follow a sliding scale of interest versus principal. During the early years of a loan, a large percentage of your payment goes to paying down the interest amount, and a very small amount, sometimes only a few dollars, goes to lowering the principal. As the loan ages, the proportion changes the other direction, so in the last few years, virtually every dollar you pay goes to pay off the principal balance. Of course… Read More

### Would you pay extra for mortgage or put in a bank?

If you have no other debts and you have a comfortable cushion in your savings I would definitely pay extra to your mortgage because overtime it can save you a lot of money. Example: 300,000 mortgage at 4.5% and 30 year term, paying just $200 extra per month reduces the number of monthly payments by 76, or 6.33 years, and reduces the interest and total paid by $59,436.41. That is a huge savings for only… Read More

### If I pay about 6 months worth of mortgage payments so I can be ahead what will happen if my house was to get destroyed Would I be out of all 6 months worth of money?

It sounds like you would be expecting a refund. You owe your mortgage payments even if your house gets destroyed. If you paid six months ahead your money is gone. You won't get it back but it would reduce what you own on your mortgage. However, if you have a mortgage then it is likely you have homeowner's insurance that would restore/repair your dwelling. You may also be expected to make your monthly payments. If… Read More

### How much does it cost to take your name off a joint mortgage?

Probably can be done for half of the remainder of mortgage cost (And a little bit extra for costs)