Hi all,
If you feel strange though, can I repay mortgage faster than I originally planned?
I am young and didnt have experience buying property.
I am trying my best to save as much as to pay for downpayment and thinking getting mortgage a lot. Then, the interest is so high.
After I buy a property, can I repay it quickly so that I can reduce interest?
Thank you in advance.
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07-10-2011, 11:49 PM #1
Can I repay mortgage quickly?
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08-10-2011, 07:13 AM #2
Yes you can always repay the mortgage, but depending on the deal you sign there may be a penalty for doing so within the first 1 or 2 years.
And at 2.x% mortgage interest rates are really not high!
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08-10-2011, 09:24 AM #3
As you get older and you gain more experience with finances, you will realize that debt is not all bad. For example, if your mortgage rate is low relative to inflation or existing lending rates, or you can get a better return with the money that you would use to pay down the debt. Many different factors to consider...
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08-10-2011, 09:49 AM #4
thank you
Thank you so much for your kind replies.
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08-10-2011, 10:50 AM #5
You think current interest rates are high? My first property, interest rates were 9% when I took out my mortgage, spent some years at 12% and hit (I think) 18% for a little while. Never had a mortgage at less than 6% (don't have one here; paid them all off and now we own outright). Debt can be a way to make money but it's always a risk. Not everyone is suited to taking that risk.
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