Anonymous
Anonymous asked in Business & FinancePersonal Finance · 6 months ago

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?

14 Answers

Relevance
  • B
    Lv 7
    6 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

  • 6 months ago

    It depends upon your mortgage loan's conditions. Check with the bank or mortgage company about this: most will permit this.

  • Eva
    Lv 7
    6 months ago

    You must make at least your regular payment every month. Any additional amount can be marked as an additional principal payment.

  • 6 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.

  • How do you think about the answers? You can sign in to vote the answer.
  • 6 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.

  • 6 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.

  • Never
    Lv 7
    6 months ago

    Sure, just leave a note that says you are philosophically opposed to interest.

  • Judy
    Lv 7
    6 months ago

    You have to pay the regular payment first. Anything you pay OVER that goes to principal.

  • night
    Lv 6
    6 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.

  • 6 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.

Still have questions? Get your answers by asking now.