qhenn22 asked:
Is there any calculations or formulas I can use to reduce the interest on my house note?
Is there any calculations or formulas I can use to reduce the interest on my house note?
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How can i reduce the debt on my house note when a small percentage is actually going towards the principle?4 comments to How can i reduce the debt on my house note when a small percentage is actually going towards the principle?You must be logged in to post a comment. |
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Unless you can refinance to a lower interest rate, there is one formula that works:
Spend less money on other stuff, and put it toward paying the house.
It could be as simple as getting rid of steak-night, and going beans rice instead.
Pay extra principal each month.
Yes, its called make extra payments. If your mortgage is $1,000 a month, send in a few extra hundred. Call your bank and tell than that you want the extra money to go to the principle. there is no way to have more go to your principle by only making your regular scheduled payments. There is no magic calculation or formula that will apply it ANY differently. You ONLY other option is to refinance into a mortgage with the same reaming term as your current lease, but at a lower interest rate.
You can directly pay down the principle amount a little each month. In order to do this you MUST write a separate check to the lender and write apply to principle only in the memo section and the space on the back of the check where it will be signed/stamped. If you don’t do this, only a small portion will be applied to the principle.