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...
Tag: payment
WHAT DOES THE CLOSING DISCLOSURE CONTAIN?
The CD also contains the loan amount, interest rate, monthly payment, and amount due at closing. The Closing Disclosure (“CD”) is the latest version of the costs and prepaid expenses on the loan. The numbers on the CD are intended to be the final figures for closing. The CD must be acknowledged (typically by email)...
HOW MUCH OF A DOWN PAYMENT DO I NEED?
How much money should you put down on the purchase of a property? If you just want to put the minimum down, then you are generally looking at 3% down for a primary residence (unless it is a down payment assistance, VA, or USDA loan), 10% down for a second/vacation home, and 20% down for...
REFINANCING CONSIDERATIONS
You may have received a phone call, mailer, or email with the promise of low rates and lower payments. But, is simply reducing your payment the smart thing to do? Below are some thoughts to consider before you refinance. The most basic analysis is to compare the savings to the costs. For example, if the...