Prepayment Penalty? Want to pay loan off in 5 Yrs.
Hi! Well I'm ready for an investment property and I'm working with a gentleman who wants to start another phase of his life and is selling off some of his residential rental properties. There are renters in place that want to stay. These properties all list for around $40k each. I will be obtaining a conventional loan and I would be purchasing 1 property to start with.
My question is: I would like to pay the loan off ENTIRELY within 5 years, by making more then the minimum required mortgage payment each month, can I do that? I know the bank wants their interest (over the long haul), but if there's no prepayment penalty, are there any other reasons why I couldn't pay off this residential loan that early?
Thanks in advance!
Sue