Los Angeles, CA (PRWEB) May 20, 2013
Many home owners in the Los Angeles real estate market seek to pay off their mortgages before the end of their loan terms. As experienced real estate professionals like Red Blue Realty’s team know, the two simplest ways to pay off a mortgage early are through automatic payments via bank account or lender’s website. The question for borrowers is not how to make these payments - a relatively simple process - but how much they feel comfortable making in order to reduce the term of their mortgage, and build up equity in the home more quickly.
A skilled Los Angeles real estate agent can explain that the timing of these payments can be made automatically, monthly, twice a month, or every week - whatever the borrower’s preference.
Additional funds can be paid in other fashions besides direct deposits, too: by simply adding an additional amount to a scheduled payment, mailing an additional amount between payments, or even by arranging a transaction with a teller at the lender’s bank.
This extra payment is for money applied to a principal amount, and should be noted as such. This is referred to as “curtailment.”
Borrowers can apply these extra amounts to their principal any time they wish, just as long as their scheduled payments are up to date. If a regular payment is late or missed, the extra funds are applied to that instead. If impound account payments such as insurance or home owners association fees are not paid, curtailment amounts are not utilized for this purpose. Naturally, it’s important to stay current on all payments.
While borrowers don’t need to inform lenders when they are making an extra payment, clearly marking the intent to pay extra principal on payment coupons by mail or on line is key when paying down principal on Los Angeles homes for sale. Otherwise, lenders could become confused if a payment is close to the amount of a scheduled payment, or made close to the date of a scheduled payment without clarification.
Should a borrower send in too much money by mistake, the error can be corrected if the lender is contacted within thirty days. However, borrowers seeking to retrieve curtailment payments accrued over a longer period of time, even due to financial hardship, may find this an impossible task. In short: borrowers should be absolutely certain of the curtailment amount they wish to pay before making it. Additional amounts paid toward principal are the lenders once paid, they are not reserve funds to be utilized when necessity strikes.
Also, there are limits to curtailment payments on line. A lender or a Los Angeles real estate agent can explain that how much can be paid on line, as the limits are set to prevent fraud or error.
If a borrower wishes to make a full payoff, rather than paying down the mortgage itself, that amount should be discussed with the lender, as with interest shifts, the full figure may change rapidly.
Phone Number: 1-(855) 66-RBREALTY or 1-(855) 667-2732