fbpx
Paying Down Your Mortgage
When the situation arises that you have a lump sum of cash to pay down your existing mortgage, there may be different options available. Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same. Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and […]
Paying Down Your Mortgage
When the situation arises that you have a lump sum of cash to pay down your existing mortgage, there may be different options available. Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same. Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and […]

97881365-a4d5-4fd1-bea8-e9dec639da05.jpg

When the situation arises that you have a lump sum of cash to pay down your existing mortgage, there may be different options available. Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same.

Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and interest payment but leaves the term intact with the same payoff date.

The interest rate on the mortgage will stay the same regardless. Prepaying principal can be done at any time but may not be applied until the next payment date. Recasting cannot be done within the first 90-days of a mortgage.

Pre-paying principal is like driving faster on a trip to a specific destination to get you there sooner. Recasting/Re-amortization gets you to the destination at the same estimated time of arrival but using less fuel.

Most loans allow you to pre-pay principal, but recasting is not allowed on FHA, VA, and GNMA. If you have a conventional loan, check with your lender to see if it is possible.

Contact your mortgage servicer for specific information on pre-paying or recasting your mortgage before acting.

LIST OF BLOGS

What You Don’t Know About Real Estate Buying (3 )

What You Don't Know About Real Estate Buying Being in the market to buy genuine estate can make you feel a bit susceptible and baffled. Listed below you will discover some of the finest pointers out there! One crucial idea when it concerns realty, is to follow your...

Tips to Avoid Pitfalls in Owning Investment Rental Property

Tips to Avoid Pitfalls in Owning Investment Rental Property Operating and owning financial investment rental home can offer a variety of essential benefits. There are prospective drawbacks to owning rental home; nevertheless, you can assist to lessen possible risks by...

What Is A Rental Property Tax Deduction

What Is A Rental Property Tax Deduction A rental home tax reduction is any expenditure that develops from owning a rental home. Some other home tax reductions that the majority of individuals forget about are charges for an accounting professional, costs for an...

Property buyer’s Loan Guide

Property buyer's Loan Guide If you are a very first time property buyer, there are a couple of points on a loan for property buyers that you must keep in mind. The tips to a loan for property buyers are:1) Work out your cost and the payment that would develop up...

Dealing with a1031 Exchange

Dealing with a1031 Exchange There are numerous methods to benefit off of owning home and being associated with realty. Not just does this originated from discovering the ideal residential or commercial property, individuals and loans to deal with, however likewise...

Purchasing A House After Bankruptcy – Things To Consider

Purchasing A House After Bankruptcy - Things To Consider Insolvency can make getting any sort of funding far more challenging. It's not difficult any longer to get funding, even a couple of days after the discharge of an insolvency. Is getting a loan quickly after an...

Adapting to Life’s New Chapters

All of us encounter major life events and they have the possibility of disrupting our lives temporarily, if not permanently. The homes we live in may have met our needs originally but due to a change in our life, it may no longer be adequate or the best fit for us,...

My spouse and I are rather conservative in our beliefs

My partner and I are rather conservative in our beliefs We were amazed when our child came home from college and revealed that she was going to take the inheritance that she got from her godmother and purchase a home. She stated that she saw a home for sale close to...

Rental Property Investment Offers Numerous Advantages

Rental Property Investment Offers Numerous Advantages More and more individuals are ending up being interested in investing in rental residential or commercial property due to the big number of benefits provided by owning rental residential or commercial property. One...

RECENT POSTS

ABOUT  TWENTY
THREE HOMES

The Twenty Three Homes are one of the premiere real estate groups locally, nationally and internationally, specifically dealing with high-end properties and exclusive clientele. Partner with Keller Williams Twenty Three Homes are full service real estate experts whose clients benefit from the custom tailored, hands on service while receiving all the exclusive amenities and resources of one of the most established and respected firms in the business.

GET IN TOUCH