Can You Pay off a Variable-Rate Mortgage Early?
Potential homeowners and borrowers who are researching the various home loan product offerings available to them may want to learn if they can pay off a variable-rate mortgage early. Yes, borrowers have the potential of paying off their variable-rate mortgages early.
A variable-rate mortgage is a type of home loan product with an interest-rate that fluctuates over the life of the loan. Variable-rate loans pose a risk to both the borrower and mortgage provider due to the fluctuating interest rates.
Because variable-rate loans pose risks to the borrower and mortgage provider, mortgage providers will oftentimes allow their borrowers to pay off a variable-rate mortgage early without incurring any penalties or being required to fund various fees or charges for paying the mortgage off before the end of it’s terms because of the risks posed.
Borrowers and homeowners with variable-rate mortgages can benefit greatly from the flexibility of the loan as well as the decreased rate at the beginning of the loan’s terms.
Making additional mortgage repayments during the decreased rate at the beginning of the loan’s terms can result in the borrower saving money over the life of the loan.
Potential borrowers and homeowners who are interested in learning more about variable-rate home loans should reach out to the professional Mortgage House team of mortgage providers for further information as well as specialized assistance and advice throughout the loan application process.