Hey guys, got a question for you, and my bank seemed a little unsure, so I thought I'd tap you guys for some knowledge.
Currently have a 15-year fixed 3.5% mortgage that I've been paying ahead on for about a year and a half now - normal monthly payment is around $2,200, and I've been paying $2,500. I've gotten so far ahead that I no longer even receive a monthly statement from the bank, since the computer sees that nothing is owed on a monthly basis at this point.
I've got some big expenses in the next couple of months (disability and life insurance premiums are coming due, truck needs a new radiator, etc.) and was wondering if it'd be ok to skip a mortgage payment to maintain cash flow. It's not something I absolutely need to do, but it'd make me feel better if nothing else. I figure paying ahead has afforded me the flexibility to do this, and the bank seemed to agree, but like I said, the guy didn't seem all that sure - I don't think people paying ahead is something they encounter much! For anybody that knows, I've got some questions -
Will this affect escrow payments, which account for my homeowner's insurance and property taxes?
Will I erase all the progress I've made by paying ahead?
Since interest accrues daily, will I have a ton more in the next month's payment since I didn't pay anything this month?
FYI this is the only debt that I have. Thanks for the info guys!
Currently have a 15-year fixed 3.5% mortgage that I've been paying ahead on for about a year and a half now - normal monthly payment is around $2,200, and I've been paying $2,500. I've gotten so far ahead that I no longer even receive a monthly statement from the bank, since the computer sees that nothing is owed on a monthly basis at this point.
I've got some big expenses in the next couple of months (disability and life insurance premiums are coming due, truck needs a new radiator, etc.) and was wondering if it'd be ok to skip a mortgage payment to maintain cash flow. It's not something I absolutely need to do, but it'd make me feel better if nothing else. I figure paying ahead has afforded me the flexibility to do this, and the bank seemed to agree, but like I said, the guy didn't seem all that sure - I don't think people paying ahead is something they encounter much! For anybody that knows, I've got some questions -
Will this affect escrow payments, which account for my homeowner's insurance and property taxes?
Will I erase all the progress I've made by paying ahead?
Since interest accrues daily, will I have a ton more in the next month's payment since I didn't pay anything this month?
FYI this is the only debt that I have. Thanks for the info guys!
Comment