Can I pay more than what the bank asks for on my mortgage? For example the banks said my dues were $1500. Can I pay like 2000 when I have more money or is that illegal on a fixed rate loan.
2007-04-03 18:16:05 · 10 answers · asked by John 2 in Business & Finance ➔ Renting & Real Estate
You may want to find out first if there is a prepayment penalty. If there is not, feel free to pay the extra money. Make sure to clearly state that the additional funds are to be applied to the principle of the loan.
2007-04-03 18:20:20 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Usually you can pay extra. Check your mortgage agreement. Sometimes there are restrictions on paying extra.
If you pay extra the money goes toward the principal. Especially fairly early in the loan, this can really shorten the total time you'll be paying.
2007-04-04 02:04:26 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
I'm a mortgage broker from Edmonton, Alberta and in Canada all mortgages have whats called pre-payment privileges. This will be usually be that you can put up to 20% of your mortgage amount each year without penalty and that you can increase your payments by a certain amount. Look at your mortgage commitment it will tell you.
2007-04-04 02:46:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, you can pay more...there should be a box on the statement showing principal you can put an amount in that space and it will go towards the principal and not the interest if you pay 500 more per month you will pay off your house much sooner...Great idea...
2007-04-04 01:21:13 · answer #4 · answered by Vonda J 3 · 0⤊ 0⤋
It would actually be a good idea to pay more if you can afford it. It will significantly shorten your total mortgage term. Make sure you designate the overage to go to your principal, not the interest.
2007-04-04 01:20:53 · answer #5 · answered by lyllyan 6 · 0⤊ 0⤋
It will be stated on your loan. Just call the company and ask if you are not sure.
Pre-payment penalties are referring to refinancing. Paying more on your principle is usually OK.
2007-04-04 06:56:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Of course you can pay more on your mortgage. Anything over what you owe would be paid on principal.
2007-04-04 01:20:48 · answer #7 · answered by dewkisses02 4 · 0⤊ 0⤋
You should be able to pay more..but u have to specify where u want the extra money to go..like to the principal or escrow acct..
2007-04-04 01:20:37 · answer #8 · answered by Nancy S 3 · 0⤊ 0⤋
depends where you live i know you can in california and can not in nz
2007-04-04 02:38:23 · answer #9 · answered by Anonymous · 0⤊ 0⤋
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2007-04-04 01:23:49 · answer #10 · answered by Anonymous · 0⤊ 4⤋