25 votes

Is it possible to pay the remaining monthly payments of a mortgage instead of cancelling the mortgage and paying the early repayment fee?

Short answer: Ask your bank. In the United States, most mortgages do not have a prepayment fee. Contact the bank and ask them for the payoff amount. This should be the remaining principle plus ...
  • 21.5k
11 votes

Adjustable Rate Mortgage (ARM) in 2022?

they say that interest rates are very high right now and are likely to come down in the next 10 years, at which point I can refinance with a fixed rate. Or not. And then what? Is the rate difference ...
  • 137k
8 votes

Is it possible to pay the remaining monthly payments of a mortgage instead of cancelling the mortgage and paying the early repayment fee?

If a mortgaged property is sold, is it possible to pay the remaining monthly payments of a mortgage instead of cancelling the mortgage and paying the early repayment fee? When you get a mortgage the ...
6 votes

Adjustable Rate Mortgage (ARM) in 2022?

From a risk assessment point of view, an ARM reduces lenders risk and increases the borrowers risk. Any plan to avoid the increase by refinancing is foolish. Typical ARM loans are less than 1% “...
  • 1,317
6 votes

Adjustable Rate Mortgage (ARM) in 2022?

The advantage of an ARM is that the initial interest rate may be lower than what you would have to pay for a fixed rate. Suppose the bank calculates that, under present market conditions, they could ...
  • 21.5k
5 votes

Is it possible to pay the remaining monthly payments of a mortgage instead of cancelling the mortgage and paying the early repayment fee?

The remaining monthly payments include both the remaining principal, and the interest on that principal for the remainder of the mortgage. When a mortgage has a "prepayment penalty", that ...
4 votes

Should I repay my student loan to free up £800 in cash flow?

Wanting more "cash flow" doesn't make sense; if you need £800/month, you could just take it out of that extra £12k you have. And given that you also have a mortgage with a higher interest ...
3 votes

Is it possible to pay the remaining monthly payments of a mortgage instead of cancelling the mortgage and paying the early repayment fee?

If a mortgaged property is sold, is it possible to pay the remaining monthly payments of a mortgage instead of cancelling the mortgage and paying the early repayment fee? TL;DR: maybe, but you ...
3 votes

Is it possible to pay the remaining monthly payments of a mortgage instead of cancelling the mortgage and paying the early repayment fee?

You need to read the terms of your mortgage and call your lender to verify your understanding of the terms. However, I offer some generalizations below: Most mortgages have no penalty for early ...
  • 7,571
3 votes

Should I repay my student loan to free up £800 in cash flow?

There are two important questions here: How much money should you leave yourself for emergencies? What is the best use for your extra money? Many people in the US suggest ~6 months worth of expenses ...
  • 66.6k
2 votes
Accepted

Do banks waive early mortgage payment charges if interest rates change?

Banks typically fund fixed-rate mortgages from the wholesale interest rate swaps market, so it's unlikely that they're actively losing money on your loan. That said, if you do overpay it they would ...
2 votes

Should I repay my student loan to free up £800 in cash flow?

Always pay down your highest-interest-rate loan first, unless there are specific reasons not to (for example, if you're expecting the government to forgive some or all of your student loan, you might ...
  • 33.2k
2 votes

How do I buy a life insurance policy as a collateral?

I have no idea what the life insurance thing is about. (See edit below.) Keeping the old house only makes sense if you are going to use that house for something that is worth continuing to pay ...
  • 33.2k
2 votes

How do I buy a life insurance policy as a collateral?

It's very common to buy a house, and then sometime later sell this house and use the equity as a down payment on a bigger house. For example, you buy a house that costs $100,000. Over some period of ...
  • 21.5k

Only top scored, non community-wiki answers of a minimum length are eligible