Forgotten Your Password?

Need to Register?

Question Icon

I received an inheretance of 60,000. What would happen if I use it to pay down my mortgage/

Hi,I recently received an inheretence of $60,000. I owe $291,000 on my current home.If I decide to take the $60 K and put it into my mortgage, does that automatically reduce my monthly payment? I like the current interest rate and I don't want to change it by refinancing. I'm not sure what happens when I pay down such a big payment?Help please!Thank you by jesswreight from Des Plaines, Illinois. Jan 20th 2010 Reply


Lori McMahon (ljprops)
#8 ranked lender in Wisconsin - 3 contributions

I don't believe that would automatically reduce it...I would suggest you call your lender and ask them.Lori

Jan 20th 2010
0
0
Rob McAllister (Rob McAllister)
#6 ranked lender in Washington - 48 contributions

some lenders will allow a one time principal reduction and then modify the loan note to adjust the payments downward. This will depend on your loan servicers policies. You should contact your lender and see if they are able to do that or not. If not you would need to do a full refinance. With rates being as low as they are it may still be worth doing. It may also be worth paying down the loan and do a refinance to a shorter term (ie. 30 year fixed to a 15 year fixed) which may not raise your payments and save you a lot of money over the term of your loan.

Jan 20th 2010
0
0
Sean Wheelan (Sean Wheelan)
#2 ranked lender in Rhode Island - 8 contributions

Hello!Your question leads to several others...Your main questions is whether or not your current bank will re-caste your loan. Some do some don't. If they do, typically they'll want to see a significant pay down of 20% or so and the admin fee to get done migt be around $500. The bigger question is, what is the best thing to do with your $60,000??? I would have to know more about your budget, debts, disposable income, etc. Any conversation about this should also have your Financial Advisor involved. This can't simply be answered by a Loan Officer.Let me know if I can help?

Jan 20th 2010
0
0
Subscribe to our news feed.