Real Estate and Home Mortgages - Paying extra on mortgage

I want to know what the advantages and disadvantages would be to paying extra on my morgage pament. My wife and I got a sizable tax refund and I wanted to put it all toward our morgage. If our loan will let us do this, will this reduce my monthly payments or educe the #of payment on the back end.

Paying extra on the principal won't change your monthly payment any but it will allow you to pay off the mortgage earlier.

Mark's right - this advances the end of the mortgage, it doesn't change your payments

But it CAN save you a significant amount of interest. If you do some web surfing you should be able to find some websites that will let you input numbers and play what-if.

Thanks for the responses guys. I just tried real quick and was not able to come up with any site for inputing possible #'s. If you have any suggestions I would love to hear them.

Thnaks again.

Try here:
http://www.bankrate.com/brm/mortgage-calculator.asp

This will let you put in extra payments and show how much sooner your mortgage will be paid off.

Some others:

http://mortgages.interest.com/content/calculators/mortgage_calculator.asp

http://www.yourmoneycounts.com/ymc/tools/calculators/DebtAccel.html

http://www.vertex42.com/ExcelTemplates/extra-payments.html

It does save sizable amounts of money over the long term, but don't discount the fact that you're mortgage rate is pretty low when you factor in the tax deduction for mortgage interest. Depending on your time span, it might be better to put the extra funds in a mutual fund.

Also, your mortgage interest rate is probably lower than a car loan rate or credit card rate. Use the extra money to pay down those first. Unless you are lucky enough to have neither! :D

sorry i have no nay knowledge about advantage and disadvantage of the Mortgages ,i know that Mortgage is the pledging of a property to a lender as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.
for more information try to click on [URL="http://www.noads.com[/URL]

sorry i have no nay knowledge about advantage and disadvantage of the Mortgages ,i know that Mortgage is the pledging of a property to a lender as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.
for more information try to click on [URL="http://www.noads.com[/URL]

what is your point? you dont make sense

petrick wasn't trying to answer a question :eek: his main purpose for posting was advertising - which got him banned!