0
Do voluntary mortgage payments get recorded as principle AND interest or principle only?
Drveverka
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.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is one potential effect of an increase in mortgage interest rates?
Increased mortgage rates for a homeowner mean their mortgage payments increase. Additionally, less money will go towards reducing the principle with an increased interest rate.
Is mortgage an example of annuities due?
No, mortgage payments are due in the beginning of the month like rent; however, the mortgage payment covers the previous month's interest and principle on the mortgage loan. Rent is an "annuity due" because it is paid in adavance to cover the next 30 days to follow.
Why would you want an interest only mortgage?
An interest-only mortgage calculator can help you determine how much money you'll save by getting a shorter-term mortgage, refinancing your mortgage and/or making additional payments on your mortgage.
What are the terms of an interest only mortgage Is it equivalent to a 30-year fixed with additional principal payments?
With an interest only mortgage, the borrower pays only the interest due on the money that is borrowed. There is no money allotted in the payment amount that is reducing the principle. Interest only mortgages therefore have much lower payments but can result in negative amortization. 30-year fixed rate mortgages have money (albeit a very small amount to begin with) figured into the payment which is paying off the principle from the very first payment. Making additional payments toward the principle not only reduces the total amount of the loan, but also the amount of the total interest that will be paid to the lender. The amount of the payment may be much higher, but the result is equity (ownership). An interest only loan never leads to equity other than appreciation.
Why are home Mortgages usually a wise for of debt for consumers?
The mortgage payments are sometimes lower than rent payments. Mortgage interest is tax deductible. That makes some people think carrying a mortgage is the smart thing to do.
What does an interest only loan mortgage accomplish?
An interest only loan mortgage accomplished a few things. These 'things' consist of a very small principle payment, or even just interest only payments.
What is one potential effect of an increase in mortgage interest rates?
Increased mortgage rates for a homeowner mean their mortgage payments increase. Additionally, less money will go towards reducing the principle with an increased interest rate.
Can you claim mortgage interest with quit claim deed if you are not on the mortgage?
You must be making the payments to claim the interest. However, if you are not on the mortgage there could be an issue.
What does aggregate lease payments mean?
The sum of all payments including principle and interest.
Is mortgage an example of annuities due?
No, mortgage payments are due in the beginning of the month like rent; however, the mortgage payment covers the previous month's interest and principle on the mortgage loan. Rent is an "annuity due" because it is paid in adavance to cover the next 30 days to follow.
How can i calculate value of mortgage interest deduction?
On the mortgage documents is a list of the interest payments for each year. If they are by month, you add them up. You get the year's interest payments. When you fill out your income tax forms, you put mortgage interest in the proper blank. Then you follow directions. If you use a computer program, it is even easier.
Why would you want an interest only mortgage?
An interest-only mortgage calculator can help you determine how much money you'll save by getting a shorter-term mortgage, refinancing your mortgage and/or making additional payments on your mortgage.
How can I pay my mortgage off quickly?
The best way to pay of your mortgage earlier is to make additional payments soley towards the principle of your loan. Also you could shave off years of payments by making bimonthly payments.
What are the terms of an interest only mortgage Is it equivalent to a 30-year fixed with additional principal payments?
With an interest only mortgage, the borrower pays only the interest due on the money that is borrowed. There is no money allotted in the payment amount that is reducing the principle. Interest only mortgages therefore have much lower payments but can result in negative amortization. 30-year fixed rate mortgages have money (albeit a very small amount to begin with) figured into the payment which is paying off the principle from the very first payment. Making additional payments toward the principle not only reduces the total amount of the loan, but also the amount of the total interest that will be paid to the lender. The amount of the payment may be much higher, but the result is equity (ownership). An interest only loan never leads to equity other than appreciation.
Why are home mortgages a wise form of debt for consumers?
The mortgage payments are sometimes lower than rent payments. Mortgage interest is tax deductible. That makes some people think carrying a mortgage is the smart thing to do.
Why are home Mortgages usually a wise for of debt for consumers?
The mortgage payments are sometimes lower than rent payments. Mortgage interest is tax deductible. That makes some people think carrying a mortgage is the smart thing to do.
Can a lender take your principal and interest payments for your mortgage and pay property taxes?
You need to review your mortgage documents that you signed at your closing.
