We can help you decode your mortgage’s pre-payment privileges and penalties to make the best decision for your payments.
Buying a home is a complex process that usually involves a lot of specialized finance and real estate terminology. Because of the specialized knowledge in play, it’s always a wise idea to work with a professional who can explain these terms to you and go over your options so that you don’t face any surprises during the process. One of the things a professional mortgage broker can tell you that might not be obvious to someone outside the field is whether a given loan has pre-payment privileges and penalties in its mortgage terms. At Centum Mortgage Store, Ltd., we are here to go over more about what these privileges and penalties are and how they can affect your loans.
To put it simply, pre-payment privileges and penalties concern what happens if you want to pay off your mortgage sooner than laid out in the original terms of the agreement. Some lenders may not allow pre-payment at all, but those who do grant pre-payment privileges include terms on what ways you can make additional payments. For instance, you may be able to make bi-weekly rather than monthly payments, meaning you’ll pay off a larger sum in a year, or the lender may allow lump sum payments up to a certain percentage of the principal. On the other hand, there may also be pre-payment penalties involved, such as an increased interest rate or a fee, which are designed to ensure that the lender makes money on the loan. If this sounds confusing or you want to make sure you fully understand all the angles, you can consult with us at Centum Mortgage Store,Ltd. We’ll give you the thorough explanation you need to make informed decisions about the pre-payment privileges and penalties of your mortgage.
AtCentum Mortgage Store, Ltd., we are proud to serve the Kelowna, British Columbia community, and we want to help you make the best decisions when it comes to your mortgage, so give us a call if you want to know more about any pre-payment privileges and penalties attached to your loan.