Question

For extra money, you decide to invest in your mortgage. Which statement is TRUE about mortgage...

For extra money, you decide to invest in your mortgage. Which statement is TRUE about mortgage prepayments?
    A.   Money you've invested toward mortgage can be taken out anytime you want, like checking account
   B.   The more you invest in mortgage, the less total interest payment that you get to pay
   C.   Both A and B
   D.   None of the above

Homework Answers

Answer #1

In Mortgage prepayment the amount invested can be withdrawn at any point of time. It will protect the interest of investors. Also more amount of money investment in mortgage will resulted in lower interest payment for a period of time.

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