New answers tagged down-payment
2
This may depend on where you are and what type of mortgage you have, because most of the answers so far contract my direct experience!
I have a pretty standard repayment mortgage with a building society in the UK. When I made a big overpayment, I was told that they'd automatically reduce my monthly payments to keep the term the same; but I could (and did) ...
1
This needs to be negotiated with the lender.
Consider this: you get one 10000 USD loan with 200 USD monthly payment and another 40000 USD loan with 800 USD monthly payment with equal lengths. Then if you pay 10000 USD for the 10000 USD loan, obviously it will vanish so your monthly payments do really get reduced by 200 USD.
However, if you have only one ...
2
This answer applies to the US. This may be different in other countries.
Like the other answers have mentioned, over a typical fixed mortgage, the payment amount stays the same for the life of the loan.
In a normal fixed rate mortgage, if you make a large payment towards your mortgage, you are shortening the amount of time you will make payments and this ...
1
Unless you refinance, making a large lump sum pre-payment won't alter the monthly payment amount. The effect it will have is to shorten the term, so the mortgage gets paid off sooner. Because the pre-payment goes directly to principal, the interest portion of each payment will go down (less principal to attract interest each month), so the principal portion ...
3
Generally it depends. At least in europe bank offer 2 types of credits and mortgages:
Fixed payment
Fixed return on capital.
In the first, the absolute payment is fixed and over time more and more of the capital goes towards paying back the principal.
In the second, the rturn on principal is fixed and over time the monthyl payment (which includes return ...
6
Generally no.
Mortgage loans are typically amortized up front, with a fixed payment every month. The proportion of that payment that applies to interest vs principal changes every month (more interest at first, when there is more outstanding balance) but the payment stays the same every month.
If you pay "extra" and it is applied to principal, the lender ...
22
The typical home mortgage is amortized to give you a consistent payment amount through the duration of the loan. What you'll see is that each month a greater portion of your payment goes to principal rather than interest. When looking at loan calculators look for ones that show the full amortization schedule to get a good picture of how the variables ...
7
Not typically. The payment amount on a mortgage is typically fixed until the principal balance is paid off. If you make extra payments after origination, that payment reduces the amount of principal remaining, which reduces the amount of interest that is charged, which means that more of the fixed payment goes to principal, paying off the loan sooner.
You ...
4
I think in most situations, the seller of the home will be unconcerned about the source of the money and how much is a loan, as the money will pass through a bank anyway.
You are incorrect in this assumption. The quality of the buyer is very important to the seller. You, as a 50% down buyer, look far more attractive as a buyer that is putting 10% or less ...
Top 50 recent answers are included
