Now let’s pretend after five years you came upon some cash and decided to pay the mortgage balance down to $175,000, despite the amortization of the loan dictating a balance of around $226,000 after 60 payments.Īs mentioned, the monthly payment wouldn’t change just because you made an extra payment. Let’s assume you started out with a $250,000 loan amount on a 30-year fixed mortgage set at 4%. New loan balance: $175,000 (lower but payment doesn’t change without a recast) One point is equal to 1% of the principal amount of the mortgage.In this case, you could benefit from recasting your mortgage to a lower monthly payment. Discount points are charges paid to the lender voluntarily, usually at closing by the borrower or seller, to reduce the interest rate.Contact the VA for the maximum loan guaranty amount for your county and for more information on the funding fee. Maximum loan guaranty amount varies per county. For VA Loans, VA funding fee required and will vary.For ARMS, the APR, interest rate, and monthly payments may increase after the introductory interest rate period.*The annual percentage rate ("APR") calculations on first-lien mortgage loan products in the tables are based on typical prepaid finance charges-actual charges may vary based on the terms of the loan and geographical area. The actual payment obligation will be greater.
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