Agent

Early payoff cuts real estate loan costs

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

DEAR BOB: The loan papers for my recently refinanced home mortgage say there is no penalty for paying off the mortgage early. However, it says no part of the finance charge will be refunded. Does this mean I will save no money at all for paying off my mortgage early? – Laurie K. DEAR LAURIE: Congratulations! You wisely obtained a mortgage with no prepayment penalty. That means if you pay off the current lender after winning the lotto or refinancing with another lender, you won't incur any penalty for early repayment. Purchase Bob Bruss reports online. Millions of homeowners elect to make extra mortgage payments each month to prepay their home loans earlier than the 15-, 20-, 25- or 30-year term. The result is huge interest savings due to early payoff. Whether you prepay your mortgage gradually, such as an extra $100 per month toward principal reduction, or you prepay the entire amount, you won't incur any penalty. Many mortgages, where allowed by state law, have prepayment pe...