Skip to content

Professional construction solutions in Durango, Dgo., Mexico

CDGO construcción

Mortgage Prepayment Savings

1.Current loan balance

$

2.Current terms

%
0%25%
1 year40 years

3.Prepayment plan

$
$
This scenario keeps the estimated regular payment and applies additional contributions directly to principal to shorten the term.

Fixed-rate monthly-payment estimate; review the terms of your loan agreement.

Mortgage strategy

How do mortgage prepayments help?

A payment applied directly to outstanding principal reduces the balance that generates interest. The benefit is often greater in the early years when the regular payment is maintained.

Read the CONDUSEF reference

Frequently asked questions

Are principal prepayments and advance installments the same?

Not always. A principal prepayment reduces the outstanding balance; an advance installment may simply cover future scheduled payments.

Is it better to shorten the term or lower the payment?

Shortening the term usually maximizes interest savings. Lowering the payment can help when freeing monthly cash flow is the priority.

Do all mortgages allow penalty-free prepayments?

Terms vary by contract and lender. Check minimum amounts, application dates, and any fees before transferring funds.