Quote:
Originally Posted by Flabbibulin
One last question- is it true that you cant make extra payments or request an increase in your monthly payment if you are on a fixed rate? Or perhaps you can, but there are conditions? ie. has to be a certain minimum amount, can only do it so many times per year etc??
edit- at least this is the understanding I am getting from my contract. A little confusing for the layman though. Perhaps I should ask my mortgage broker to dumb it down for me??
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Brocoli explained it well. Talk to your broker, he should be able to give you more info as to what your prepayment privileges are. They should also be in your mortgage documents. Prepayments are a great way to pay your mortgage down quicker and save interest along the way. Accelerated bi-weekly payments are pretty effective too.