Are most mortgages callable or non-callable. I heard after the depression there is a loaw that say mortgage are not callable unless certain parameters are broken.Can a bank call my mortgage due for no reason?
Most mortgages are not call loans.
To see why, imagine the situation that is going to emerge as interest rates continue to rise with so many ultra-low-interest fixed-rate loans outstanding (many as low as 5.25%).
If mortgages were callable without cause, banks would be foolish _not_ to call them under those circumstances - they could be getting more money by effectively forcing mortgage holders to refinance at new, higher rates.
No comments:
Post a Comment