Hey ATOT, I have a question that I'm hoping you guys may help shine some light on.
A few years ago my parents took out a small mortgage on their, then paid-for, house to take care of some unexpected family drama. Recently, my grandfather was able to obtain a fairly substantial amount of $$$ and he would like to pay off a portion of the mortgage loan principle.
That being said, instead of having the length of time that the loan needs to be paid go down, he would like to see the monthly payment go down while the loan term stay the same. Hence, a reamoritization of the loan.
My question is, is this common? If so, does it vary between Mortgage company who allows this and who doesn't? I would think that most loan companies would be agreeable to this as it's their best chance to continue to collect interest on the loan.
Yes, my 'rents will call up the Mortgage company tomorrow to find out for sure, this is more for my personal knowledge.
Thanks!
A few years ago my parents took out a small mortgage on their, then paid-for, house to take care of some unexpected family drama. Recently, my grandfather was able to obtain a fairly substantial amount of $$$ and he would like to pay off a portion of the mortgage loan principle.
That being said, instead of having the length of time that the loan needs to be paid go down, he would like to see the monthly payment go down while the loan term stay the same. Hence, a reamoritization of the loan.
My question is, is this common? If so, does it vary between Mortgage company who allows this and who doesn't? I would think that most loan companies would be agreeable to this as it's their best chance to continue to collect interest on the loan.
Yes, my 'rents will call up the Mortgage company tomorrow to find out for sure, this is more for my personal knowledge.
Thanks!
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