Reply #55: no prepayment penalty is a good one [View All]

[pitohui]

when i bought my house, "no prepayment penalty" was a standard even though interest rates were much higher, it surprised me a bit when i asked that they didn't want to protect their income but "no prepayment penalty" was already in the contract

always worth checking

our loan was from a federal program that allowed us to make a v. minimal down payment but we were able to pay off our house in less than a decade by sending extra $$$ toward the principal and noting it on the house note form any time we had a "windfall"

the last payment we overpaid and they ended up sending us back a check with the letter letting us know that we had paid in full

what a great feeling!

we could not have rented for all these years, for the same price as what we paid even when you include taxes, insurance, maintanance -- which i guess is logical, rents today shock me, but obviously rent has to cover all these costs plus provide a profit to someone so it's logical that rents would be higher in the long run