can you pay extra mortgage payment and apply only to principal?
Even paying $20 or $50 extra each month can help you to pay down your mortgage faster. For example, if you have a 30-year $250,000 mortgage with a 5 percent interest rate, you will pay $1,342.05 each month in principal and interest alone.You will pay $233,133.89 in interest over the course of the loan.f you take out a 30 year loan for $250,000.00 with a 5.000% interest rate, for example, your monthly payment (interest and principal only) will be $1,342.05. By the time the 30 year time period is complete, you will have paid $483,133.89 for your home.
Once that monthly interest is paid, anything additional can be applied to the principal, and this will lessen the amount of future interest you will pay on the loan.At the same time, any payments that you make will always pay the current interest due first. Hereâs an example :. I donât believe you can make a âprincipal onlyâ payment, call your servicer to find out for sure. However, as long as you are making the contracted principle and interest payment, most contracts allow for prepayments without penalty.