I need advice from any dancers who own their own homes.
I have a question about two mortgages, and I can't ask my broker until Monday...
I am trying to pick a mortgage that will be the most flexable in terms of early re-payment without penalties, and also flexable in terms of being able to deposit chunks of money from work in various amounts at irregualt times.
Here's what I have to choose from:
Mortgage #1 has a "double up" feature and a "pre-payment" feature.
Double Up Payment Feature: you may increase your regular payment amount once each calendar year, to a maximum of 100% over the term of your mortgage.
Prepayment Feature: Prepay up to 15% of the original principal amount of your mortgage without charge each calendar year, in amounts as low as $100 each - at any time.
Mortgage #2 has a "25/25" feature.
25/25 Prepayment Options
The bank gives you two options to pay your mortgage ahead of time. There is no additional interest or fee charged for either of these options.
1. You may increase your mortgage payment (principal and interest) by up to 25% of the initial amount, each calendar year.
2. You may prepay up to 25% of the initial principal amount, each calendar year.
*This bank's web site said that the early 'payments' somehow get put in a reserve account, and if you miss a payment then the reserve covers this. But I don't understand how that is possible if the early payments supposedly go toward the principle balance??
I'm very very intimidated by numbers and I'm having a problem understanding which of these two is best for me.
What do you think is more flexable in terms of depositing random cash towards my mortgage, because I have a big problem holding onto cash for any ammount of time, and having to save up a specific ammount for a specific date (i.e. 20% on the mortgage anniversary) will probabally not work for me.
thanks


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