Posted on: 05th Sep, 2013 12:12 am
Hello everyone... I want to know what will happen if I pay off/return the mortgage in full. If I buy a house for $400,000 and take out a loan of $350,000 (rest of the amount is down payment). After around a year, I get a gift of $500,000 and I decide to pay off the loan. Will the lender allow it and will it lower my mortgage interest rate?
You can pay off the mortgage in full if you have the whole amount but you should always remember about the pre-payment penalty. If a pre-payment penalty is mentioned in your loan docs, then you will have to pay that penalty for pre-paying the loan.
Before making payments, make sure you ask your mortgage lender whether or not there is any prepayment penalties for paying your mortgage early.
Hi Guest,
To know all about pre-payment penalty, you can check out the given page: http://www.mortgagefit.com/prepayment-penalty.html .
Thanks
To know all about pre-payment penalty, you can check out the given page: http://www.mortgagefit.com/prepayment-penalty.html .
Thanks