Can I buy out my mortgage?

[BILLHOUSE]

I have a loan for 250k( borrowed 250k),30 year loan lets say I am the next Jeopardy 10 week winner and now have $350,000.00  Can I pay off my loan with $250,000.00 ? and not have to pay the interest. I think the payments are for 360 months.

[mynameainttracy]

Of course, however read the fine print in your loan documents. Some throw in a clause that if you pay off the balance in full (like sell your house )within x number of years (for us it said 3) that you would have to pay a penalty.

[StartingOver10]

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@BILLHOUSE wrote:

I have a loan for 250k( borrowed 250k),30 year loan lets say I am the next Jeopardy 10 week winner and now have $350,000.00  Can I pay off my loan with $250,000.00 ? and not have to pay the interest. I think the payments are for 360 months.

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Most mortgages do not have a penalty if you pay them off early.

FHA mortgage do require you to pay the interest for the month that you pay the mortgage off. For example, if you win Jeopardy today and pay off your mortgage tomorrow, then the interest for the month of June is due too.

Some private lenders do have pre-payment penalties on mortgages. A typcial pre-payment penalty with that type of mortgage is 6 months of interest.