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But most loans today don't have prepayment penalty
To the consumer. Almost all have penalties to the originator.
You don't know with 100% certainty.....you may have a plan or a strong desire, so, do keep it to yourself. It cannot be considered while underwriting the loan and it does nothing to make you more of an attractive risk. It could, OTOH, cost the lender thousands in Early Payoff Penalties.
Continue as planned and without broadcasting it to anyone. Nothing illegal about it and 100% in your best interests to keep it to yourself.
It was my impression that the originator or the lender, not sure which, is looking for you to keep the mortgage for a minimum amount of time (1 year? 2 years?) or they don't want to bother with you because it costs them too much. Maybe someone can put some real mmbers to this for us.
Not trying to solicit just giving a heads up on just one of many lender banks/credit unions.
Now with that said you can google XXX bank and XXX loan and read the terms within that.
check and read your loan contract thoroughly. You can't just "not mention this to them?" because they own your house currently. if you wanted to pay off, you would also need to clarify with them the $ you put in extra is meant for principle and NOT for the next month's payment. If you have all the cash to pay off completely, you would need to consult with them of the total payoff $. Never do things without their knowledge. It is them that provides you the service, which means they have the right to know where the payments go.
To the consumer. Almost all have penalties to the originator.
You don't know with 100% certainty.....you may have a plan or a strong desire, so, do keep it to yourself. It cannot be considered while underwriting the loan and it does nothing to make you more of an attractive risk. It could, OTOH, cost the lender thousands in Early Payoff Penalties.
Continue as planned and without broadcasting it to anyone. Nothing illegal about it and 100% in your best interests to keep it to yourself.
Cool, thanks for the info.
also thanks to everyone else in this thread who answered the question.
check and read your loan contract thoroughly. You can't just "not mention this to them?" because they own your house currently. if you wanted to pay off, you would also need to clarify with them the $ you put in extra is meant for principle and NOT for the next month's payment. If you have all the cash to pay off completely, you would need to consult with them of the total payoff $. Never do things without their knowledge. It is them that provides you the service, which means they have the right to know where the payments go.
I wouldn't pay it off right away, but I would try to make a few extra payments towards the principle a year.
I paid about $60K in rent in 7 years and want to find a small home for about $60k. I know I have the added expenses of mortgage insurance, taxes and home insurance, but I hope to pay it off in 10 years if I can find a roommate to help with the bills. If I do find a roommate, which I'm not so sure I really want, it would pay for most of the mortgage.
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