Quote:
Originally Posted by fotze
10% pricple is really low, is it not? Those sound like they are on the low end of pre-payment options.
|
Just do the math.
10 years, 10%.
5 years, 20%.
When the bank enters into the contract they'd like to know they're going to have a decent mortgage balance (at least something) each of the years of the term. If you could pay 20% on the 10-year the bank would have a less than $80k mortgage for the 6-10th years, then $62k, $50, $40, $32.