Posted by Rod Speed on February 8, 2010, 1:18 pm
Bill wrote:
> If a mortgage payment is due on the 30th of each month, is there any advantage
to paying it on the 1st of each month?
> (Pay earlier than the due date each month)
Depends on how the interest is calculated, there is with some loans.
Posted by Malcom \"Mal\" Reynolds on February 8, 2010, 2:02 pm
In article
wrote:
> If a mortgage payment is due on the 30th of each month, is there any
> advantage to paying it on the 1st of each month?
>
> (Pay earlier than the due date each month)
The best that can happen is that over
the term of the mortgage you would save
approximately 29 days of interest. The
rest of the time you will still be
paying about 30 days of interest every
month.
If you want to save money and the
mortgage will allow it, pay half your
monthly payment every 2 weeks which will
be the equiv of 13 monthly payments
which can amount to a significant
earlier payoff.
Or just pay an additional sum each month
to "principal only"
Posted by Stan Brown on February 9, 2010, 1:27 am
Mon, 8 Feb 2010 09:04:11 -0800 from Bill
>
> If a mortgage payment is due on the 30th of each month, is there any
> advantage to paying it on the 1st of each month?
>
> (Pay earlier than the due date each month)
It depends on the mortgage. The mortgage on my first house computed
interest based on the actual dates payments were received, so there
was an advantage to paying early. The mortgage on my present house
computes interest on the date the payment is due, regardless of when
it is received,(*) so there is no advantage to paying early.
(*) There's a late fee for paying late, and presumably interest
starts accruing again if the payment is very late, but I don't know
the details.
--
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com
Shikata ga nai...
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