HOW SOON CAN I PAYOFF MY MORTGAGE IF I DOUBLE MY MONTHLY AMORTIZATION? WHAT ARRANGEMENT DO I HAVE TO MAKE WITH THE BANK PRIOR TO STARTING THE ACCELERATION PAYMENT?
Terry Says: Your mortgage lender or servicer can easily give you a new amortization schedule, telling you when the loan will be paid off, depending on how much extra you plan to pay every month. You should pay the same extra amount every month, to keep things simple. And you should let the servicer know that you want the extra amount to be credited toward principal. Or you can refinance your loan to a 15 year fixed rate loan, and likely get a lower rate as well as paying off your loan in a much shorter time.