- posted 10 years ago
We have a 30yr fixed mortgage on which we have been paying an extra $300 a month on principal, for years now. We have almost no consumer debt and live pretty frugally. Recently we ordered a new car, modest in nature, and will pay cash for it. We've decided to charge ourselves 3.5% for the loan and would like, in addition to making the scheduled payments to ourselves, take the $300 extra off the mortgage and apply it to our car loan to "retire" that faster. Then apply it again to the mortgage.
My question: After so many years of paying the extra on the mortgage, will its sudden absence be a red flag to the mortgage company? I could call them and ask but I wondered if just asking would be a red flag. Any wisdom here?