Real Estate Forums

San Diego Real Estate · 04-24-2005, 10:39 AM

Ok all you Mortgage Folks,

Here is my take on this subject! Of which I get ask a lot! Yes you can that all depends on the Lender and the Terms of your Note! (Easy to determine by calling customer service of the lender) You may or may not have a Pre-payment Penalty! If so you may be charged a penalty usually six months of interest for early payment! Not to common on fixed rate Mortgages but very common on Arms or loans with teaser rates!

Making one Extra Payment a year is a great way to save on your interest and pay off the Note early! However, you should always check with your lender first and make sure the extra payment is noted as such!

Anyone else?

Las Vegas Homes · 04-24-2005, 07:44 PM

Gosh! I think you covered all most all points on that subject although I know their is a clause that some lending banks require that don't allow the mortgagor to make additional principal payments, not very common.

afm1 · 04-25-2005, 12:52 PM

You are correct. You can pay off your loan early.

Here is a quick way to determine if you have one or not.

Good Credit (aka A paper) almost always does not carry a pre-payment penalty.

Bad Credit (aka B, C, D paper; non-conforming; sub-prime) usually carries a pre-payment penalty.

You can also look at your closing package which everyone should keep in a strong box.

It will be stated on several documents. You should have an addendum to the NOTE or just look at the Truth in Lending.

San Diego Real Estate · 05-01-2005, 02:55 PM

Matt...

Great information...Thanks for sharing...Anyone else?