Foreclosure in Columbus>Question Details

Ronda, Home Buyer in Cols., GA

Can you make your house pymt go down by paying more on your principal or extra interest pymts?

Asked by Ronda, Cols., GA Wed Nov 28, 2007

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Morning Ronda!

No, making additional payments will only pay down the principal on your home. However, if you have Private Mortgage Insurance (PMI) on your loan due to an inital loan amount of over 80% of the value. You can go to your bank if you believe your home's value has increased enough that you own 20% of the properties value. Example, You buy a home at $80,000 on a 100% loan with PMI. Your home is now worth $100,000. They can reappraise your home and possibly remove the PMI.

Also, have you filed for your homestead exemption? If not, FILE TODAY! This can lower your tax payment and if it is included in your mortgage, your mtg. payment will become lower -- probably not until after your 2008 taxes are paid.

If none of this applies and your credit is in a position to refinance, that would be my other suggestion -- especially if you have an ARM or Interest Only loan. If you have a fixed rate, I would not suggest refinancing unless you are able to obtain a lower rate.

Good Luck!
0 votes Thank Flag Link Thu Nov 29, 2007
Ronda,

Extra payments on an INTEREST ONLY mortgage can cause the payments to go down. The best bet is to contact either your mortgage company or a mortgage broker to refinance. Theresa Laine has over 20 years experience and would be happy to walk you through the steps. You can reach her at 770-891-4121.
0 votes Thank Flag Link Thu Nov 29, 2007
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
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May I also suggest JIm Cheeley at 678-527-1150 Ext 24... he is awesome. I also like Suntrust which Diane mentioned. I would contact both and get your options. If you credit score and debt are in check and your income still supports the home you should not have a problem refinancing.

Also, I will tell you that mortgage companies are being more open than even so I would contact your mortgage company if you are not able to refinance about working with you on lowering your interesting and fixing your interest. They really do not want another Foreclosure.

If you are in jeopardy, do not wait until the last minute to seek help in getting it sold. It appears that you are being proactive so please continue to be.
0 votes Thank Flag Link Wed Nov 28, 2007
Dear Ronda,

I would highly suggest contacting a loan officer or the current holder of your mortgage. If you feel like you are going to be in default with any of your payments contact them immediately and try to work with them directly, You would be surprised on what they can do for you. Most people make the mistake of getting in trouble and not contacting them until it is too late, then end up foreclosing.

I work with a wonderful bunch of mortgage reps from SunTrust and you can call any of them and ask for advice. You can ask for Kim King, Cheryl Cloud, Christopher Meek or Anne Atkins @ 770-794-0037

If you are simply looking to lower your mortgage payments you may have to refinance with a lower interest rate. Paying more on your principal will decrease the life of the loan not the monthly payment.

Good Luck!
0 votes Thank Flag Link Wed Nov 28, 2007
This would depend on what type of loan you have on your home. If you have a 30 fixed which includes principal and interest then you would NOT want to pay extra interest payments.. you could pay additional towards your principal; however, this would only lower your balance it would not decrease your future payments.

A interest only loan works similar to a credit card. The lower the balance the lower the payment. If you pay additional money towards principal your next months payment (the mimimum amount do) would be lower.

You would NEVER make an additional interest payment... there is NO benefit.
0 votes Thank Flag Link Wed Nov 28, 2007
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