4 Thoughts on Can a homeowner cancel interest on a 30yr mortgage and Pay off a 30yr in 10yrs?
  1. Reply
    EmeraldIsle
    April 13, 2013 at 3:45 am

    No and no.

  2. Reply
    lette
    April 13, 2013 at 4:18 am

    I know you can pay your mortgage company bi-weekly instead of monthly and shave off about 15 years. So if your monthly payment is $ 1,000 send them 500.00 every two weeks. Make sure your mortgage company allows this, or the extra money will be taken off interest instead of principle. Research this on the internet to explain.

  3. Reply
    stan c
    April 13, 2013 at 5:08 am

    If you have an open end mortgage, you can pay it down any time , The best way to keep record how much extra you’re paying monthly is to request an amortization from your mortgage co. On the first half of a 30 year mortgage you usually pay 70% in interest. That’s how they make their money.

  4. Reply
    !!!
    April 13, 2013 at 5:48 am

    1. Get an amortization schedule from your lender. If the payments are monthly then the schedule should have 360 lines to it.
    2. Make sure the mortgage doesn’t have a prepayment penalty.
    3. Each line is broken down by Principal, Interest, anything else.
    4. Let’s assume you are going to make the very first payment on the mortgage. Write out a check for the first payment (PITI).
    Go to the second payment line and look at the principal amount only. Write a check for
    the principal portion of the monthly payment. In the memo section of your check write “principal reduction”. record the check#’s on the respective lines of the amortization schedule. Mail the payments. The reason for writing “principal reduction” on the check is to tell the lender the extra payment is NOT for tax escrow.

    You can make as many principal reductions as you feel comfortable with. However a regular monthly payment(PITI) is still due. If this was done regularly a 30 year loan could be paid off in 15 years. If 2 extra principal payments were made a 30 year loan would be paid off in 10 years.

    Leave a reply

    Register New Account
    Reset Password