Lump payment advice?
I'll try to keep this brief and simple..
We are buying/selling. Closing on ours falls after closing on new home, and we're sitting on a decent amount of equity.
We plan to put 100k of that equity into the new VA loan (300k) to bring the loan down to 200k and a lower payment via IRRRL after 6+ months of paying the full amount on the 300k loan.
Question: Would it benefit us to put that money down immediately instead of holding onto it until the time of the 'refinance'?
In my mind, the math works the same as if we had been paying on the loan for years and brought the balance down to 200k, and more is going towards principal instead of just 99% interest (which means more would immediately be going towards principal with the immediate down-payment). Am I right to think this way about it, or will it have no effect on principal/interest in those first 6 months?