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Answers (1)
- Chad Melin, "Chad Melin"
- Contributions:113
Did you recieve any incentives from a builder for the purchase? If not, you should be able refinance with no penalty. The reason that your bank says this is that there will probably be a 'recapture fee' that they will have to pay if you refi out of that loan within the first year.
Yes, anything that you pay over the minumum payment will go straight to lowering the principal, hence gaining you equity much faster.
Refi restrictions and equity
Can my mortgage company put a restriction on my loan that I can't refinance for up to a year after the purchase date? I don't have a prepayment penalty so this seems flawed.
Also, when over paying the mortgage payment each month, is it better to put the extra towards principle or equity?
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