can i pay 50k to my mortgage loan and ask bank to reduce monthly premium?

[raccharambola]

I am on mortgage loan since 2.5 years, can i now pay 50k to my mortgage loan and ask bank to reduce monthly premium? 

 

please throw some light.

[Vaaampire]

Nope. Only refinance will change the monthly payment. But unfortunately with current interest rates, refinancing is not an option 

[JackSeal]

Just now, raccharambola said:

I am on mortgage loan since 2.5 years, can i now pay 50k to my mortgage loan and ask bank to reduce monthly premium? 

 

please throw some light.

Yes you can do... call them and say you want to recast mortgage. Some lenders wont allow recasting.

[neneno1]

Nope. Refinance is the only option

[JackSeal]

Just now, Vaaampire said:

Nope. Only refinance will change the monthly payment. But unfortunately with current interest rates, refinancing is not an option 

Mortgage recasting will reduce monthly payment if you pay lumpsum without impacting your old interest rates. I did that last year.

[Pahelwan2]

3 minutes ago, raccharambola said:

I am on mortgage loan since 2.5 years, can i now pay 50k to my mortgage loan and ask bank to reduce monthly premium? 

 

please throw some light.

With that money buy another property vayya. 

[SaradaChinnodu]

I don't think it works that way (since you would have been on fixed interest rate and changing monthly payment will mess up lot of things) unless you refinance which is not a good time for.

 

You could pay that 50K towards principal which could help with interest quotient and helps clear your mortgage early. When the interest rates, go down, you can refinance and it would help with monthly payment greatly because the loan amount would have been low with this 50K going towards principal.

[Vaaampire]

21 minutes ago, JackSeal said:

Mortgage recasting will reduce monthly payment if you pay lumpsum without impacting your old interest rates. I did that last year.

 Nice to know. Bofa/citi aithey allow cheyyaledhu. I will take back my generalized statement.

 

but with current high interest rates, banks stand could have changed. 

[JackSeal]

14 minutes ago, Vaaampire said:

 Nice to know. Bofa/citi aithey allow cheyyaledhu. I will take back my generalized statement.

 

but with current high interest rates, banks stand could have changed. 

I did with Chase

[Thokkalee]

If your loan is at a low rate, don’t bother prepaying the loan.. invest that amount somewhere else.. 

[hunkyfunky2]

46 minutes ago, raccharambola said:

I am on mortgage loan since 2.5 years, can i now pay 50k to my mortgage loan and ask bank to reduce monthly premium? 

 

please throw some light.

If you have 2 loans, make sure you pay the loan with highest interest rate 

You can do it... There is usually no prepayment penalty on new loans 

[gilakkai]

with certain banks/lenders you can do recasting, I once did with US bank. There is recasting fee of $250 or something

[pittagoda]

1 hour ago, raccharambola said:

I am on mortgage loan since 2.5 years, can i now pay 50k to my mortgage loan and ask bank to reduce monthly premium? 

 

please throw some light.

Depending upon the bank you can do recast. I am saving for 18 months to pay off 350k and cost of recast is 500. Sep ki kadtha. Better to pay more during recast.  They only allow once. Same 3% but they will recalculate for 30 years and my monthly will go from 5250 to 3950. 

[Spartan]

instead invest those 50K somewhere else. dont pay off

[chicagoafdb]

9 hours ago, Spartan said:

instead invest those 50K somewhere else. dont pay off

With current market paying 6% mortgage is better or using funds else where is better..another investment is stocks or investment home ?