Mortgage loans and Amortization payments…Someone told me this…what do you think?
This guy who bought and sold real estate told me this…mortgage payments are numbered 1-360, right (on 30yr note)? Amortization table looks like this, for example:
payment 1 = $ 800 $ 200
payment 2 – $ 799 $ 201
payment 3 = $ 798 $ 202
and so on…
He said you make an interest and principle payment every month. BUT, if you make payment 1, plus make a separate payment for “payment 2” of only the principle and state on your check that it is for payment 2 principle, which is $ 201, it will nullify the $ 799 interest, and your next payment will be payment 3.
Is this true? Says banks don’t want you to know this, cause they lose a lot of money in interest, which is true.