Tag: Amortization

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PRINCIPAL PAYMENTS ON LOANS

Typically,​ ​when​ ​you​ ​make​ ​a​ ​large​ ​principal​ ​payment​ ​on​ ​your​ ​loan,​ ​the​ ​monthly​ ​payment​ ​remains the​ ​same,​ ​but​ ​the​ ​term​ ​of​ ​the​ ​loan​ ​shortens.​ ​​ ​However,​ ​if​ ​you​ ​wish​ ​to​ ​lower​ ​the​ ​monthly​ ​payment instead​ ​of​ ​shortening​ ​the​ ​term,​ ​ask​ ​the​ ​lender​ ​if​ ​they​ ​allow​ ​a​ ​recast.​ ​​ ​A​ ​recast​ ​is​ ​where​ ​a​ ​large principal​...

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TO REFINANCE OR NOT TO REFINANCE, THAT IS THE QUESTION

Perhaps a better question is HOW to refinance. This week the Fed (FOMC) stayed the course as advertised, raising their Fed Funds rate another 25 bps, their 8th ¼ point increase since late 2015. This takes Fed Funds to 2.00-2.25% range, and Prime to 5.25%. In their public announcement following the Wednesday meeting they reiterated...