Speeding Up Florida Mortgage Loan Payments: Cutting a 40-Year Mortgage Down to 30

For those wishing to purchase a house, yet having some credit or financial trouble, resources such as a 40-year Florida home mortgage have been quite helpful. These allow the borrower to pay less each month.

However, as Florida mortgage rates have decreased over the last few weeks, many inidividuals that feel into this category may not wish to speed up their payment in order to take advantage of lowered rates. The question, therefore, remains:

1. Is it possible tooffset the interest charge on a 40-year mortgage by paying extra to the principal … to make it act like a 30-year Florida home loan?

The answer is YES - and it’s fairly simple to accomplish. You just make additional principal payments as time goes on. You’ll change the balance between interest expense and principal repayment in your monthly Florida mortgage loan payment through such action.

In the early years of a loan, more of the monthly payment goes toward paying the interest expense. Over time, though, as the principal balance goes lower, less money goes toward interest rates and more goes toward paying down the loan itself.

As a result, additional principal payments change the balance.

Just make sure that there are no prepayment penalties in making the additional payments. Also, keep a record of the additional payments to make sure your lender is properly crediting them to reduce the outstanding loan balance.