Is it legal refunding housing loan in advance in the USA?
ie. I get a housing loan from bank for 30,000$, 30 years, but after 5years I pay all 30,000and interest ...is it legal according to USA's law? THX
2006-12-05 23:03:20 · 3 answers · asked by jiusess1987 1 in Business & Finance ➔ Renting & Real Estate
It depends on your "housing loan" contract.
Some contracts allow for penalties for early repayment, others don't. The US law doesn't care one way or the other as long as the contract is followed.
2006-12-05 23:25:52 · answer #1 · answered by Gem 7 · 0⤊ 0⤋
Most of the prepayment agreements are for shorter term then 5 years. Most mortgages could be paid off in 5 years w/o any penalty.
2006-12-06 08:14:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
So long as your loan is not subject to a prepay penalty you can do that.......if there is a prepay, then you would have to pay the penalty in order to to pay off the balance.
2006-12-06 09:46:35 · answer #3 · answered by boston857 5 · 0⤊ 0⤋