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Answers (2)
- Ofe Polack, "Ofe Polack"
- Contributions:1418
It would be best for you to discuss this matter with your lender, since we do nor know the type of mortgage you will be securing. Although there may be penalties for early payment of certain mortgages, most of the loans have no penalties. Good luck!
- wayne lancaster, "funds2"
- Contributions:1177
Virtually all loans can be pre paid without penalty. There may be an adjustable rate conventional mortgage that has a pre payment penalty but those are rare and should be avoided obviously. You can prepay monthly, annually or in between and that amount will go towards reducing your principal balance. You can also make a larger payment (typically $5K+) and many lenders will recast the payment based on lower loan amount.
It is always a good idea if you make extra payment at time of regular payment to do so separately from regular payment, and clearly indicate Principal Reduction so it does not wind up in your escrow acct. Keep track of pay off balance from lender at least quarterly to make sure the balance accurately reflects all principal reduction payments.
It is always a good idea if you make extra payment at time of regular payment to do so separately from regular payment, and clearly indicate Principal Reduction so it does not wind up in your escrow acct. Keep track of pay off balance from lender at least quarterly to make sure the balance accurately reflects all principal reduction payments.
If I purchase a home and I would like to have a higher mortgage....
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