When you prepay your mortgage you make extra mortgage payments before they are due. Prepaying your mortgage can help you save interest and you can pay off your mortgage sooner. Make sure you find out whether your mortgage has a prepayment penalty before trying to prepay your mortgage.
You'll often hear people ask whether they should prepay their mortgages, and for many it makes sense to prepay. Q: I hear and see so many financial advisors and experts recommending that people pay off their mortgages by making an extra mortgage payment each year. The reality is that it would be easier for the [...]
A homeowner reader asks about making extra mortgage payments and the timeline. Ilyce says making regular extra mortgage payments will save you more money than making one large extra payment at the end of the year. No matter which way you're making extra mortgage payments, you will likely pay off your mortgage sooner and save money.
Today on the Ilyce Glink Show, Ilyce talks about how she feels the stock market is still in gyration mode. Now that we fell below the 11,000 barrier, it could happen again. This might create a once in 30-year opportunity to buy equities, which is what she's doing. Find out how she's reorganizing her investment portfolio to take advantage of changes in the market. She also took questions on selling a home before buying, prenups, writing down of mortgage values, Fannie Mae and Freddie Mac, 529 college savings plans (and the tax deduction associated with them) and how to make sure that mortgage payments made in advance are really being credited to your account properly. For show notes and updates through the week, check out her blog at www.thinkglink.com/blog , and sign up for her free weekly newsletter on the ThinkGlink.com home page. Check out the videos at www.expertrealestatetips.net. And be sure to subscribe to her YouTube channel.
A homeowner asks about prepaying her mortgage loan. She says she has paid extra on her mortgage loan every month and has reduced her loan. Her goal is to pay off her 15-year mortgage loan in five years. What will it take to do that?
A home buyer with a 10-year mortgage loan asks if making extra payments will shorten the mortgage loan. Prepaying a mortgage loan helps more if you have a time frame longer than 10 years. Prepaying brings a bigger savings when you're able to cut more years off of the loan.
The money-merge account is as essential to one's financial planning as a dashboard is to driving. The money-merge account is your financial dashboard. The money-merge account does much more than accelerate your mortgage payment, it helps you manage your finances to the penny, and will track every penny you spend, adjusting your pay-off accordingly.
While prepayment penalties are prohibited by many states, they're permitted by federally-chartered lenders. Who is a federally chartered lender? Any lender that has established its charter not in any one state but as a federal savings bank or under federal laws. Think of your major mortgage lenders, most online lenders, and local banks that have chosen to organize under a federal charter. If you're considering getting a home loan that has a prepayment penalty attached or considering refinancing an existing loan with a prepayment penalty, here's what you need to know.
Always read and understand all your mortgage closing documents. Even if you're not aware that your mortgage has a prepayment penalty, if you sign the loan documents you're responsible to pay it. A prepayment penalty can kick in when you sell your home or when you refinance - whenever you pay off your old mortgage loan.