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    privone2001's Avatar
    privone2001 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 24, 2010, 07:32 AM
    Lower monthly payments by paying lump sum on mortgage
    If I pay 20,000 on a mortgage of 130,000.00, can I lower my monthly payments? I am about to lose my job and have to cash in my retirement fund because I have not found a job yet and am definitely going to take a 20,000 a year pay cut. I realize I will have to pay the 10% penalty and takes on the retirement account.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Oct 24, 2010, 07:35 AM

    No. Even if you paid a lump sum you are still required to make the same monthly payments. You would have to refinance to change your monthly payments.

    Are you talking about a 401(K) ACCOUNT?
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