If you have a lump sum of money (typically, $10,000.00 or more) and would like to apply it toward the mortgage, consider asking the lender for a “recast.” if the lender agrees, your reduced principal balance will be recast (re-amortized) over the remaining life of the loan. This will reduce the amount of your monthly principal and interest payments going forward. The amount of the payment reduction depends upon the amount prepaid, interest rate, and the remaining loan term. It will certainly help the monthly household budget going forward!
Mitch
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