Quote:
Originally Posted by ranchlandsselling
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.
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I don't have time to calc it all out, but your math doesn't work. If you can pay 10% a year, that is in addition to the normal mortgage payments that you are paying. On a $100 000 mortgage at 3.99 percent with 10k lump sum payments you will pay off the entire mortgage in about 7 years.