Can I make principal only payments on my mortgage every month?
Or, am I still required to make my regular payments, even if I mark extra payments as principal only to lower my balance faster and save thousands in interest?
- BLv 76 months ago
beware of what is in your mortgage agreement which you signed, read it, and also call the bank who provided the mortgage before you make only principal payments
- RichardLv 76 months ago
It depends upon your mortgage loan's conditions. Check with the bank or mortgage company about this: most will permit this.
- EvaLv 76 months ago
You must make at least your regular payment every month. Any additional amount can be marked as an additional principal payment.
- SlumlordLv 76 months ago
Not sure how the bank would handle this if you simply marked every payment as princiapl only but if you didn't, at some point, make your regular payments then you'd get late fees and they would be far greater than the interest you were saving. And of course eventually they'd foreclose on the loan and take the house back.
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- STEVEN FLv 76 months ago
Until your regular payment is credited, NOTHING you pay is principle only. The interest is ALWAYS the first thing paid, regardless of what you say.
- babyboomer1001Lv 76 months ago
READ your contract. If you did, you would know that you are required to make your regular payments. If you want to pay more to shorten the term and get it paid off sooner, you can make double payments. You have to pay the interest that your contract calls for sooner or later so, why mess around telling them that you want to pay more and just apply it to principal? Either make a double payment or don't. Keeping track otherwise could get tricky.
- NeverLv 76 months ago
Sure, just leave a note that says you are philosophically opposed to interest.
- JudyLv 76 months ago
You have to pay the regular payment first. Anything you pay OVER that goes to principal.
- nightLv 66 months ago
It depends on your mortgage, some have a prepayment penalty. You need to make your full payment first each month, anything over that amount can be designated as a principle payment. Once you make that extra principle payment it can't be undone, you still have to make your regular payments each month. Even an extra $25 each month can reduce the interest you pay.
- USAFisnumber1Lv 76 months ago
Yes but it is safer to just bump up your payment a bit each month. Say the amount due is $1233. Bump it up to $1250 or $1300. The interest gets paid, then the escrow and whatever is left goes to the principle automatically.