Скачать или смотреть 4 Reasons Your Mortgage Principal Myth Is Wrong 🏠💡

🏠💡 Debunking the mortgage principal myth: recast vs prepay and when smart money wins.

One-page summary:
The article explains that for standard fixed-rate mortgages, making a large lump-sum payment toward the principal does not reduce the next minimum monthly payment. Instead, such prepayments accelerate amortization, lowering the daily interest accrual and enabling you to pay off the loan earlier, which can save substantial interest over the life of the loan. The minimum payment remains the same unless you take action like a loan recast. A recast recalculates the payment based on the new, lower balance and the remaining term, potentially lowering the monthly obligation. However, recasting is not automatic, often carries a fee, and many lenders do not offer it. Always confirm your lender's policy before expecting a lower bill from a large prepayment.

A key strategic consideration is opportunity cost: compare your mortgage interest rate to potential investment returns. If your rate is very low, investing the extra cash may yield greater long-term wealth than simply speeding up debt payoff. Liquidity matters: tying up cash in the mortgage reduces financial flexibility, so you should analyze whether a lower payment through recasting or other options makes sense for your goals.

Actionable takeaways:
Verify your lender's recast policy and fees.
Assess whether a large prepayment makes sense given your rate and investment alternatives.
Understand that prepaying reduces total interest and term, but does not automatically shrink the monthly payment unless a recast is granted.

Tags: mortgage, homeownership, financialplanning, recast, prepayment, amortization, fixed-rate, investing, opportunitycost, wealthbuilding, debtmanagement, realestate, personalfinance


00:00 Intro
00:34 Agenda
01:08 Myth
01:32 Fixed Pay
02:10 Recast
02:41 Steps
03:16 Timeline
03:42 Compare
04:21 Example
05:16 Pie Chart
05:49 Mindmap
06:38 Quiz 1
07:07 Answer 1
07:22 Quiz 2
07:47 Answer 2
08:01 Caution
08:39 Disclaimer
08:59 Takeaways
09:34 Wrap
10:04 Thanks