Dave Dodson wrote:
> On Mar 19, 2:59 pm, dapperdobbs <George...@[EMAIL PROTECTED]
> wrote:
>
>>I think the lender will recompute your payments, but NOT the length of
>>the mortgage (you would have to refinance into a shorter-term mortgage
>>for that)
>
>
> Of course it would depend on the particular loan documents, but my
> experience has been that prepaying reduces the term of the mortgage,
> not the monthly payment. So I think you are wrong here.
I think you are right, Dave. A fixed rate mortgage will not see the
payment required adjust due to prepayments. On the other hand, I found
that variables do work that way. When adjustment time came, the new
balance, time remaining, and new rate were used to calculate the
payment, so prepayments effectively reduced the payment at the next reset.
Joe
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators
strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM
THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on
the
Newsgroup.
|
