Saving On 15-Year Loan

Expert, localized Los Angeles answers provided by Heather Roy

Saving On 15-Year Loan
	Dear Edith, I have a question concerning a 15- year conventional mortgage. You ave stated that you can pay down a thirty year mortgage by paying an extra full payment a year, thus shortening the length of said mortgage. My question, is it possible to do the same for a 15- year mortgage? If so is it done in the same way?

	Assuming yours is a fixed-rate mortgage, making one extra payment a year, clearly marked “to be applied entirely to principal”, will cut a 15-years mortgage down to about 12 years. With an adjustable-rate loan, the original time period will remain the same, but payments will be smaller and the borrower will still save on interest expense.
	Edith Originally published on October 16, 2005

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