What if I get 30 y amortization but I pay the payment equal to the 25 y amortization ? Will I pay the mortgage in 25 y ? The answer is yes, so 30 y is great option that gives you lower payment at the beginning which can be increased and you can pay of your mortage sooner.
However, banks are not stupid, they want stable cashflow to pay off their debt which refers to the distribution/interests of the invesemtns/savings people buy from them. So, there is a prepayment penalty or every speculator can take advantage of that.
Great video, do you think the government will increase amortization for convention mortgages too?
I doubt and I don’t think they should.
Thanks for watching!
What if I get 30 y amortization but I pay the payment equal to the 25 y amortization ? Will I pay the mortgage in 25 y ? The answer is yes, so 30 y is great option that gives you lower payment at the beginning which can be increased and you can pay of your mortage sooner.
However, banks are not stupid, they want stable cashflow to pay off their debt which refers to the distribution/interests of the invesemtns/savings people buy from them. So, there is a prepayment penalty or every speculator can take advantage of that.