Seesus
Active Member
Good Day all, Apologies in advance if this looks like an extremely basic question to some.
I am just trying to understand a scenario a bit better e.g.
1. Say i have a mortgage of 100K for 20 Yr amortization and a term of 2 years
2. Total Principal portion of repayment for this term of 2 years is 20K
So once this 2 year term ends, I can re-negotiate the rate and amortization etc of the mortgage etc however as i have re-paid 20K in 2 years then would i be renegotiating a mortgage of 80 K at that time ?? I am trying to understand that paying down the principal portion does infact bring down the total amount that i need to get the mortgage for at the time of renewal upon conclusion of the term ?
Much appreciate all the help.
I am just trying to understand a scenario a bit better e.g.
1. Say i have a mortgage of 100K for 20 Yr amortization and a term of 2 years
2. Total Principal portion of repayment for this term of 2 years is 20K
So once this 2 year term ends, I can re-negotiate the rate and amortization etc of the mortgage etc however as i have re-paid 20K in 2 years then would i be renegotiating a mortgage of 80 K at that time ?? I am trying to understand that paying down the principal portion does infact bring down the total amount that i need to get the mortgage for at the time of renewal upon conclusion of the term ?
Much appreciate all the help.