PREPAYMENT PRIVILEGES
Prepayment privileges are voluntary payments in addition to your regular
mortgage payments. The money is applied directly against the principal owing,
so you'll pay off your mortgage more quickly. You'll also significantly
reduce the total amount of interest you would otherwise have paid.
Some examples of possible options available:
1) You can increase your regular principal and interest mortgage payment
by as much as 100%.
2) You can pay up to 15% of the original principal balance in a lump-sum
once annually or on the anniversary date.
Taking advantage of prepayment privilege is a good way to reduce the life
of your mortgage.
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