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A Strategy for Cutting Mortgage Payments

Found this article in the NYT this week. 

This article discusses that paying a lump sum of money (> $5,000) and asking the mortgage company to reamortize your loan will decrease your monthly payment for the remaining term.

I say make the extra payments toward the principal and do not ask the bank to recast a loan.  This keeps monthly payments the same but shortens the time it takes to pay off the loan (and less interest you pay on the house).

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January 8, 2011 - Posted by | Uncategorized | , , , , , ,

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