Send to a Friend

Dutchess_III's avatar

How does paying extra on my house payment affect my principal and interest?

Asked by Dutchess_III (46863points) May 13th, 2014

My minimum mortgage payment is $950. I’ve been paying a flat $1000 every month. This month is a hard month so I called to see if my minimum payment for this month was reduced by the extra payments. It was. I only owed $150 to keep everything current. I hated to lose all that ground, but I really had no choice.

I have a question that either she couldn’t answer or I couldn’t understand. Hypothetically let’s say that I get to a point where I’m sitting on a credit, and I continue to pay $1000 a month. Let’s say my payoff is $60,000. Does this mean I can pay the house off in 60 months? What about their interest? I know they have to have their interest!

How does this work?

Using Fluther

or

Using Email

Separate multiple emails with commas.
We’ll only use these emails for this message.