- Posted by HomeHow
- On November 20, 2018
- 0 Comments
A no-frills mortgage is mortgage with minimum or no flexibility to change the mortgage terms or even bail out the mortgage before the mortgage term expires. A few examples are:
If you go into a 5 year term mortgage, within the next 5 years you cannot:
- break the mortgage until you sell the house.
- you still have to pay an expensive penalty when you break your mortgage.
- you cannot increase payment to your house (even you have won a lottery!)
- you cannot borrow more (do a refinance) from your house.
When you see a mortgage advertisement with a rate that is the lowest amongst all other banks/ lenders have offered, it is likely a no-frills mortgage.« Back to Glossary Index