The great majority of us are in mortgage contracts that contain a prepayment privilege of some sort. “Privilege” being the key word here. Not all mortgage contracts contain such privileges, but that’s a story for another day.
The mortgages that do allow prepayment privileges, usually allow at least 15% of your mortgage to be paid down, interest and penalty free, each year. On a $300,000 mortgage, that is $45,000 that you’re able to put directly towards
We often see ads from the major lenders offering cash back incentives on their Mortgage products.
Gone are the days where a Cash Back Mortgage could be used to facilitate a purchase without the required minimum of a 5% down payment.
Cash Back incentives are now made available for other enticing uses; New Furniture and Appliances, Renovations and the other great hook…..
Apply the cash back portion directly on your Mortgage for a better effective rate! Just a few weeks ago, I was emailed an offer from a major lender who shall remain unnamed;
“NEW PROMO … Cash back for purchases. Effective 5 year Rate as low as 2.62%….”
First off, the Cash Back Mortgages are
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