--- title: 4 Tips to Help You Understand Curtailment in Mortgages description: "Understanding Curtailment in Mortgages: This article provides an overview of mortgage curtailment: what it is, how it works, and when homeowners may consider it. Learn more about this important mortgage term." image: https://pdxdirectrealty.com/hubfs/Imported_Blog_Media/image_160-3.png --- [Skip to content](https://pdxdirectrealty.com/articles/understanding-curtailment-in-mortgages#main-content) [![PDX Direct Realty](https://pdxdirectrealty.com/hs-fs/hubfs/Black%20logo%20-%20no%20background-2.png?width=150&height=147&name=Black%20logo%20-%20no%20background-2.png)](https://pdxdirectrealty.com/) - Services Show submenu for Services - [Listing Services](https://pdxdirectrealty.com/listing-services) - [Buyer Services](https://pdxdirectrealty.com/buyer-services) - [Additional Services](https://pdxdirectrealty.com/additional-services) - [About Us](https://pdxdirectrealty.com/about-us) - [Customer Portal](https://pdxdirectrealty.com/customer-portal) Open main navigation Close main navigation - Services Show submenu for Services - [Listing Services](https://pdxdirectrealty.com/listing-services) - [Buyer Services](https://pdxdirectrealty.com/buyer-services) - [Additional Services](https://pdxdirectrealty.com/additional-services) - [About Us](https://pdxdirectrealty.com/about-us) - [Customer Portal](https://pdxdirectrealty.com/customer-portal) - [Contact Us](https://pdxdirectrealty.com/contact-us) [Contact Us](https://pdxdirectrealty.com/contact-us) [All posts](https://pdxdirectrealty.com/articles/all) December 22, 2023 # Understanding Curtailment in Mortgages By  PDX Direct  ·  1 minute read Understanding Curtailment in Mortgages: This article provides an overview of mortgage curtailment: what it is, how it works, and when homeowners may consider it. Learn more about this important mortgage term. ## Understanding Curtailment in Mortgages Mortgage curtailment is an option available to homeowners who want to either shorten the term of their mortgage or lower their monthly payments on a mortgage. When a homeowner opts for a curtailment, a portion of the outstanding principal balance is paid in a lump sum, resulting in a reduced balance and thus a new payment schedule. It is important to understand that if you are considering a mortgage curtailment, it may involve a refinancing process. This means that you will be required to fill out additional paperwork and may incur loan related fees and penalties that can vary between lenders. When it comes to deciding if you should pursue the option of mortgage curtailment, there are a few things you should consider. For starters, you need to ensure that the upfront cost of the refinancing is not greater than the savings you will receive in the long run. You should also take into account the loans and fees associated with the refinancing, as well as any interest rate changes that may occur. Another factor to keep in mind is that when you do a mortgage curtailment, it will have a positive effect on how much interest you pay over the term of your loan. This is because a lump sum payment at the beginning decreases your loan principal. As your balance decreases, so does the interest you will be paying on the remaining balance. If you are looking to reduce your monthly mortgage payments without extending the length of the loan, a mortgage curtailment could be a suitable option. Before committing to this option, make sure to speak with a mortgage lender to ensure that you understand the associated costs and the long-term effects. This will help you decide if this is the right course of action for you. ## More Articles to Consider Reading [Should I Refinance My Mortgage? A Decision-Making Guide](https://pdxdirectrealty.com/articles/should-i-refinance-my-mortgage-a-decision-making-guide) [Refinance to a 15-Year Mortgage: Pros and Cons](https://pdxdirectrealty.com/articles/refinance-to-a-15-year-mortgage-pros-and-cons) [Average Mortgage Payment: Understanding the Norms](https://pdxdirectrealty.com/articles/average-mortgage-payment-understanding-the-norms) [20-Year Mortgage: Shorting Your Home Loan Term](https://pdxdirectrealty.com/articles/20-year-mortgage-shorting-your-home-loan-term) [Refinance Tax Deductions: Maximizing Your Savings](https://pdxdirectrealty.com/articles/refinance-tax-deductions-maximizing-your-savings) [Refinance Home Equity Loan: Strategies for Financial Flexibility](https://pdxdirectrealty.com/articles/refinance-home-equity-loan-strategies-for-financial-flexibility) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://pdxdirectrealty.com/articles/understanding-curtailment-in-mortgages) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://pdxdirectrealty.com/articles/understanding-curtailment-in-mortgages) [twitter icon](https://twitter.com/intent/tweet?url=https://pdxdirectrealty.com/articles/understanding-curtailment-in-mortgages) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://pdxdirectrealty.com/articles/understanding-curtailment-in-mortgages) [envelope icon](mailto:?body=https://pdxdirectrealty.com/articles/understanding-curtailment-in-mortgages) [![PDX Direct Realty](https://pdxdirectrealty.com/hs-fs/hubfs/Color%20logo%20-%20no%20background.png?width=100&height=98&name=Color%20logo%20-%20no%20background.png "PDX Direct Realty")](http://PDX%20Direct%20Realty) [List@PDXDirectRealty.com](mailto:List@PDXDirectRealty.com) (503) 847-2199 M-F 8am-5pm PST 3225 SW 87th Ave. #25653 Portland, OR 97225 Our Services - [Property Listing Services](https://pdxdirectrealty.com/listing-services) - [Home Buyer Services](https://pdxdirectrealty.com/buyer-services) - [Business Listing Services](https://pdxdirectrealty.com/contact-us) - [Additional Services](https://pdxdirectrealty.com/additional-services) Company Information - [About Us](https://pdxdirectrealty.com/about-us) - [Contact Us](https://pdxdirectrealty.com/contact-us) - [Terms of Service](https://pdxdirectrealty.com/terms-of-service) - [Privacy Policy](https://legal.hubspot.com/privacy-policy) - [Real Estate Articles](https://pdxdirectrealty.com/articles) **Customer Portal** - [Submit Listing Data](https://pdxdirectrealty.com/submission-options) - [Submit Photos](https://pdxdirectrealty.com/photo-submission) - [Submit Changes](https://pdxdirectrealty.com/submit-changes-form) - [Submit Documents](https://pdxdirectrealty.com/document-submission-form) Copyright © 2026, PDX Direct Realty - All Rights Reserved - Licensed in the State of Oregon ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "PDX Direct", "url" : "https://pdxdirectrealty.com/articles/author/pdx-direct" }, "dateModified" : "2023-12-22T19:45:41.307Z", "datePublished" : "2023-06-14T07:00:00.000Z", "headline" : "4 Tips to Help You Understand Curtailment in Mortgages", "image" : [ "https://pdxdirectrealty.com/hubfs/Imported_Blog_Media/image_160-3.png" ], "mainEntityOfPage" : { "@id" : "https://pdxdirectrealty.com/articles/understanding-curtailment-in-mortgages", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://pdxdirectrealty.com/hubfs/Color%20logo%20-%20no%20background.png" }, "name" : "PDX Direct Realty" } } ``` ```json { "@context" : "http://schema.org", "@type" : "Article", "author" : { "@type" : "Person", "name" : [ "PDX Direct" ] }, "datePublished" : "2023-06-14T07:00:00+0000", "description" : "Understanding Curtailment in Mortgages: This article provides an overview of mortgage curtailment: what it is, how it works, and when homeowners may consider it. 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