- Joined
- Aug 19, 2011
- Messages
- 183
Need to clarify one thing about the monthly mortgage payment amount.
In the mortgage agreement with the lenders, they allow you to pre-paydown the mortgage about 15-20%, which varies from different lender. Say for example, if your current mortgage balance is $500,000, the monthly payment is $1800, you are allowed to pre pay down 20% annually before the end of 2018. Then starting from 2019, your mortgage balance will be $400,000. My question is whether the monthly mortgage payment calculation will be adjusted since now the balance is $400K, instead of $500k. If, they are still the same at $1800, what is the ratio between the principle and interest considering the balance is reduced to $400K.
This question is for lender or mortgage broker, but I asked here in case you know. The purpose of this question is to strategize my cash position, manage the cash flow, and tax planning.
Thank you!
In the mortgage agreement with the lenders, they allow you to pre-paydown the mortgage about 15-20%, which varies from different lender. Say for example, if your current mortgage balance is $500,000, the monthly payment is $1800, you are allowed to pre pay down 20% annually before the end of 2018. Then starting from 2019, your mortgage balance will be $400,000. My question is whether the monthly mortgage payment calculation will be adjusted since now the balance is $400K, instead of $500k. If, they are still the same at $1800, what is the ratio between the principle and interest considering the balance is reduced to $400K.
This question is for lender or mortgage broker, but I asked here in case you know. The purpose of this question is to strategize my cash position, manage the cash flow, and tax planning.
Thank you!