Making your mortgage payment ahead of schedule can be a great way to pay off your mortgage faster and save on interest costs. But how far in advance can you make your mortgage payment? In this article, we’ll provide a step-by-step guide on how to make your mortgage payment ahead of schedule, as well as answer some frequently asked questions about this process.
How to Make Your Mortgage Payment Ahead of Schedule?
- Contact your mortgage lender to find out if they allow advance payments. Some lenders may not accept advance payments, while others may have specific rules or restrictions on how far in advance you can pay.
- If your lender allows advance payments, find out how they prefer to receive them. Some lenders may allow you to make an additional payment through their online portal or mobile app, while others may require you to send a check or money order.
- Make your advance payment according to the instructions provided by your lender. Be sure to include your account number and any other identifying information to ensure that the payment is applied correctly.
- Keep track of your payments and adjust your budget accordingly. If you’re making advance payments, you’ll need to be mindful of your cash flow and make sure you have enough money to cover your regular mortgage payments as well.
Frequently Asked Questions:
How far in advance can I make my mortgage payment?
The amount of time you can make your mortgage payment in advance will depend on your lender’s policies. Some lenders may allow you to make a payment as far as one year in advance, while others may have stricter limits. It’s important to check with your lender to find out what their policies are.
Can I make a partial advance payment?
Some lenders may allow you to make a partial advance payment, while others may require you to make a full payment for the month. It’s important to check with your lender to find out what their policies are.
Will making an advance payment reduce my monthly mortgage payment?
Making an advance payment can reduce your monthly mortgage payment if you have a mortgage with a variable interest rate. By paying more principal upfront, you’ll reduce the amount of interest you’ll owe over the life of the loan. However, if you have a fixed-rate mortgage, your monthly payment will not change.
Conclusion
Making your mortgage payment ahead of schedule can be a great way to pay off your mortgage faster and save on interest costs. However, it’s important to check with your lender to find out if they allow advance payments and, if so, how far in advance you can make them. By following the steps outlined above and staying organized, you can easily make your mortgage payment ahead of schedule and take control of your finances. So, it is always better to plan ahead and make your mortgage payment in advance to save on interest costs.
