2 responses to “How can I use lump sum money received to help pay current 15 yr bi monthy payment mortage?”

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  Can't Stand Ignorant Questio March 14th, 2011 at 07:12

  Glenda

  Send the payment to the mortgage co. and mark it
  for “Principle Payment”
  Follow up and be sure it all went to the principle and not tagged to the end of the loan.

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  quizzard123 March 15th, 2011 at 15:33

  Dean

  You can only do this if you have an open mortgage, or a mortgage with prepayment opportunity.

  For instance, a mortgage I had previously gave me the right to prepay up to 10% of the original balance once each year.

  You may also have the right to increase your payment, which will also come directly off the principal.

  You’d have to read your mortgage agreement to find that out.

  If you do not have a right to prepay, you may still be able to do it, but will be penalized the interest the bank loses (making it effectively a pointless exercise).