Do you know the Downsides regarding an early Financial Rewards?

• Death of exchangeability: You are fundamentally to find a fraction of your house sooner than scheduled. The money that you apply to settle the borrowed funds loses their exchangeability, not, you can however play with good HELOC or upcoming refinance to access that it collateral. For many who stick to new frequently scheduled payments, you continue to very own your home and the lender just uses it guarantee. Ergo, and work out early money doesn’t enable you to individual your residence sooner or later as well as your dollars might be tied into the an illiquid resource. (more…)