30 year fixed home mortgage paid in 10 years? ?
Hello, if I pay a 30 year mortgage in 10 years by making more payments on the principal, would I need to keep paying interest for 20 years, or would all the interest be gone because I paid the mortgage?
- Common SenseLv 71 month ago
Read your mortgage papers to see if there is a pre payment penalty.
We paid $100.00 more than our monthly mortgage payment for five years in order to have more equity, knowing we were going to increase the size of the house.
Fast forward twenty years...all the while, we still paid more than the monthly mortgage. With just a few years left to pay off the mortgage, we realized we had $24,000.00 left in monthly payments on an $11,000.00 principal balance. So, we just paid off the balance and saved ourselves $13,000.00!
We paid no prepayment penalties.
- Ron AkiaLv 61 month ago
Once the mortgage is paid you will have no further interest payments. However, some mortgages have a prepayment clause stating you cannot prepay. Read the terms of yours.
- 1 month ago
As everyone else has said, you will not have to pay anything else in terms of interest since you have paid off the balance of your mortgage. However, you will want to check the terms of your mortgage, because some mortgages include a pre-payment penalty that you would need to pay if you pay off the principal early.
- LLv 51 month ago
Interest is only added when there is a balance due. If you pay the principal completely off.............which means there is a ZERO balance - then there is NO interest to be paid.
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- SlumlordLv 71 month ago
The interest is caluclated on the remaining balance, so pay off the loan and there is no interest. Pay down the loan and more of your next payment goes towards principal.
- sunshine_melLv 71 month ago
Once you have paid the mortgage, you're done - so if you pay it off early, you won't need to continue making payments to the full term.
Some have early payment penalties, so be clear on this.
- babyboomer1001Lv 71 month ago
It would be gone. You would pay less interest, only for the 10 years it took you to pay off the debt.
- curtisports2Lv 71 month ago
The faster you pay it off, the less interest you pay. If you look at an amortization schedule, it will show what the principal and interest portions of each and every payment are when paid on-schedule. Accelerating principal payments alters that schedule - paying principal ahead of schedule will make the next scheduled principal payment a little larger and the interest portion a little smaller. Do that continuously and you accelerate the pay-off and reduce total interest.
- Jewel LittlenutsLv 61 month ago
They have to cut your interest but check your contract, they get you with early payment charges sometimes, I'd recommend anyone to get or change to a mortgage without the early repayment charges if they can.
- Anonymous1 month ago
If there is no principal. the loan is over. When you make your extra payments, be sure to specify that they should be applied to the principal, not the interest. This will help you pay it off faster.