Community Chat

[Kachina624]

I have an idea... Call your mortgage company and ask! 

[VaBelle35]

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@missy1 wrote:

I didn't think you could do that. It would just be a very huge payment for that month.

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I've done it with a car payment, paying 3 payments at a time.

You just have to make sure it goes toward your monthly payment and not principle.

When I look at my mortgage online it shows this statement:

"You have an existing automatic payment scheduled for Aug 01, 2017. Any additional payments are applied as principal only to your loan and will not affect your amount due"

[pitdakota]

Our house is paid off and has been for a while.  But I would think if he could pay a year's worth of mortgage at once, he would be better off making other payments through the year. 

We made double payments at times and paid the house off early.  It is worth it in the end due to the amount of interest it takes off the back side of the loan. 

[VaBelle35]

I specifically did that with my car payment because I have concerns about losing my job, so I didn't want to use all cash for the car.  I got a ridiculous credit union loan of 0.9% for 60 months and just made between 2-4 payments every month.

Online, I was able to pay the next cycle as soon as I made the payment, so I just waited a day between transactions.

[JillyMarie]

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@proudlyfromNJ wrote:

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@Annabellethecat66 wrote:

I paid my house off years ago.  If you live in a house long enough, you'd pay it off.

My daughter and her husband refinanced their house to a 12 year mortage and just paid it off.

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Yes, but can you pay a year in advance and not make another payment for a year?

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Your friend most likely made special arrangements with the bank.  Making a partial  lump sum payment does not excuse you from making monthly payments unless other arrangements have been made.

[grandma2pkmh]

@Zhills Yes you can make 12 full payments all at one time. You do need to let the mortgage company know what you are doing or they will apply the extra 11 payments to principal only. I worked in the mortgage business for 35 years and we did have a couple of home owners who did this due to sporadic income if they were self employed or worked on commission.

[esmeraldagooch]

My husband's paper mill went on strike a lot in the 70's-80's   I paid a double payment and sent two coupons till I got payed ahead.  

[KathyPet]

IT depends on the mortgage company and how they choose to apply the extra 12 months of payment.  IF they apply it as a reduction to,principal and do not advance your due date you still will owe a payment the following month.  I would never do this without checking with my mortgage holder to see if they will update my due date to 12 months from the day I made the lump sum payment.

[Nightowlz]

Probably so since we could do that on the car loan that was paid off in May. Mortgage is already paid off. When I paid off my car I did not have a payment due until Jan 2020. I asked the credit union if that meant we did not have to make a payment until Jan 2020 they said yes. That just means more interest for them. 

[Mominohio]

I pay ahead by four months, but the way it works for me, is that our payment is taken out of an account (checking) automatically, with the bank that finances the loan (they required it for a lower interest rate). I use that account only for the deduction of the house payment, and keep the equivalent of four payments in there at all times. I'm slowly working up to a 5th, and hopefully in another year, will have enough to keep 6 months worth of payments in there.

I've never borrowed out of that account, always deposit enough for at least one full payment every month. It really does give some peace of mind to know that should something happen with my husband's job, that money is set aside strictly for the house payment, right with the institution that will be taking it out of the account. If I mixed it into a general emergency fund, I'd be afraid it would get taken up with some other issue.