Posted on: 02nd Sep, 2009 03:10 pm
I have received several letters lately from the bank that holds the 2nd loan on my property (80/15/5) offering a cash incentive (amount has increased from around 3% of the balance to close to 7% of the balance) to payoff the balance in full. I am current on both loans.
I am not in a position now to pay this balance off; however, it is possible that in the future I might be (especially if the offers keep increasing). I have two questions:
1) Why would the bank offer this?
2) If I have the capital available, are there any ramifications to paying it off? The loan does not have a pre-payment penalty.
Thanks.
I am not in a position now to pay this balance off; however, it is possible that in the future I might be (especially if the offers keep increasing). I have two questions:
1) Why would the bank offer this?
2) If I have the capital available, are there any ramifications to paying it off? The loan does not have a pre-payment penalty.
Thanks.
If the bank is offergint hsi option that ma be due to some of their own situation and since they are offering this then thre shoudl be any penalty
One thign si for sure, this offer may not exisit for logn time
One thign si for sure, this offer may not exisit for logn time