Updated about 11 years ago on .
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Owner financing
How can you do a 15 year loan to ensure your home is paid off in the 15 years? Higher interest rate and/or more money down?
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Paying extra principal each month will retire the note faster but do not assume the lender will apply your extra payment the way you want them to. Some lenders will apply your extra payment to the interest if you do not provide any instructions. This will not have close to the impact of paying down the principal. Include a note every time you make an extra payment instructing the lender to apply the extra payment to the principal. Check to make sure your instructions were followed.