MELISA ORTEGA asked:


My interest rate changed and monthly payments.
How is my intererst charged after it’s earned? How can i save my money?

KELLY

2 Responses to “How can I save in my morgage service?”

1. sortaclarksville on December 18th, 2009 7:33 am

   I’m sorry. I don’t think I really understand your question.

   Interest is charged based on your balance that month. As you pay down your mortgage, less goes toward interest and more toward principle (since your payments stay the same and your interest drops because your balance drops).

   The only way to save money is to refinance it to a lower rate, or pay additional on the principle.

2. 5_for_fighting on December 19th, 2009 2:04 am

   Since it sounds like you have an adjustable rate mortgage, the very first thing I would do is refinance the house with a fixed rate mortgage. Interest rates aren’t likely to go down significantly, but there is a real good chance you will see a significant rate increase in the very near future. That means you will have a higher house payment as time goes on.

   Get rid of the ARM ASAP.

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