Wednesday, November 23, 2011

Will a bank give a discount to pay-off a mortgage ahead of schedule?

It seems possible since everything financially is in turmoil.Will a bank give a discount to pay-off a mortgage ahead of schedule?
You need to check your mortgage agreement but most banks will not charge you for paying the loan off earlier but they will not give you aa discount either. But you will save a lot of interest.Will a bank give a discount to pay-off a mortgage ahead of schedule?
I don't know of any that are doing that at present. Years ago when interest rates had gone up to 10% or more, they would give you a discount if you paid extra payments if you had an older loan at 6% or less.


If the present mess leads to hyper inflation and high interest rates, the same thing will occur again, but it hasn't happened yet.
Unlikely, they lent you the money on the expectation that they were going to get 25 years interest on it, so if you pay it off early I would think that they will charge you at least 3 months interest.
The answer is no. If you have a 30 year fixed rate mortgage, and you were half way done, you paid about 70% in interest. That's how most banks or mortgage cos. make their money.
normally they will charge you for foreclosure of the accpunt!!

No comments:

Post a Comment