HOW does the change from monthly to weekly payments reduce the amortization period?
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It reduces the amortization period because you are making your payments early thereby robbing the lending institution of interest on the otherwise remaining balance. As an example, if you have 30 year mortgage on your house, if you make 1/2 payments 2/mo. you will cut off 5+ years of payments on the mortgage. Call your lender to change your schedule of payments. Ask for a print-out of the new amortization schedule to prove it to yourself.
It reduces the amortization period because you are making your payments early thereby robbing the lending institution of interest on the otherwise remaining balance. As an example, if you have 30 year mortgage on your house, if you make 1/2 payments 2/mo. you will cut off 5+ years of payments on the mortgage. Call your lender to change your schedule of payments. Ask for a print-out of the new amortization schedule to prove it to yourself.
dalitiguous1 | Jan 30, 2010 | Reply