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| *Loan,banking and credit>>>mortgage loan |
MythBusterPlease! Is it true that if, you make a double payment in December to a 15yr mortgage/property loan.? |
every year you can get out of it in 11 yrs. If so how does that work out. That sounds about right. When you make a double payment, your second payment goes directly toward the principal. So, year by year, you're lowering the amount of the principal. By the same note, you can do the same thing on a 30 year mortgage. That lessens your 30 year to about 23, I think. It's a great thing to do. Hi there, Put it another way: If you double your monthly payment, a 25-year mortgage will be paid in ~6 years. This is because in the early years, your payment consists mostly of interest and very little Principal. By doubling your payment, the extra gets applied to the Principal. Interest is charged on an ever-declining Principal amount. OK? yeah it looks like it. there's a full explanation on this page: http://www.insiderreports.com/storypage.... I haven't read the article in-depth (yet) but I think it looks legit. you're paying your regular monthly payments and once a year (e.g. in December) pay twice the usual amount. I would imagine it could be true... you are making 13 payments a year instead of 12, and with each payment you pay down your principal balance, and with a lower principal balance, you will have less interest to pay... with a mortgage, each payment you make is part principal and part interest, and with each payment you are paying more principal and less interest so by making extra payments you will increase the amount of principal you are paying faster than if you only made 12 payments a year |
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