Question marks
Skip Navigation Links Home > My Mortgage > FAQ's >Principal Reduction Options FAQ's

Principal Reduction Options FAQ's

Principal Reduction Information

Is there a fee involved in doing a Principal Reduction Modification?

Effective March 2002, the standard fee for a Principal Reduction Modification is $500-$1,000, which is subject to change. The fee must be submitted up front, and is non-refundable.

To find out if your loan is eligible for a Principal Reduction Modification, call us at 1-800-822-5626 and ask for our Special Loans Department. Please note, your loan must be at least 6 months old before being considered for a Modification.

BackToTop

Is it possible to lower my monthly mortgage payment after applying a large sum of money to the principal of my loan?

If applicable, a Principal Reduction Modification can be executed within 12 months from the time a borrower applies a lump sum of $10,000 or more to the principal balance of their loan. The interest rate and term of the loan will remain the same. The loan is reamortized or 'recast' based on the lower balance. The loan must have investor approval before this transaction can be completed. Most private investors will not allow a modification to the loan.

BackToTop

How do I initiate a Principal Reduction Modification?

A letter of request must be submitted stating that you would like to have your monthly payment reamortized. The letter and the fee should be mailed to: 

PNC Mortgage
Attn: Special Loans/Modifications
P.O. Box 1820
Dayton OH 45401-1820

The lump sum principal payment is usually included, but can be made at any PNC Bank, if preferred. Once the principal balance has been reduced, a Loan Modification Agreement is prepared and sent to you for your signature. Once we receive the signed document, we update our database with your new payment amount, and send you new payment coupons.

To find out if your loan is eligible for a Principal Reduction Modification, call us at 1-800-822-5626 and ask for our Special Loans Department. Please note, your loan must be at least 6 months old to be considered for a Modification.

BackToTop

When does my lower payment go into effect after the Principal Reduction Modification has been completed?

There is a six to eight week processing time before the new payment becomes effective. However, you will have the benefit of paying less interest immediately, so any payments made after the principal has been reduced and before the new payment amount becomes effective, results in more of the funds going to the principal balance of your loan.

BackToTop

Equal Housing Lender logo Member FDIC logo
© 2014 The PNC Financial Services Group, Inc. All rights reserved. Bank deposit products and services provided by PNC Bank, National Association, Member FDIC. PNC is a registered service mark of The PNC Financial Services Group, Inc ("PNC"). PNC Mortgage is a division of PNC Bank, National Association, a subsidiary of PNC. All loans are provided by PNC Bank, National Association and are subject to credit approval and property appraisal. Terms and conditions of the offer subject to change without notice.

Investments and Insurance: Not FDIC Insured. No Bank or Federal Government Guarantee. May Lose Value.