What is a fully prepaid mortgage?

In this scenario, the entire years payments, a total of $12,000.00 ($1000 per month x 12 months) have been added to mortgage loan, leaving the borrower payment free for a year. While taking a vacation from your mortgage payments for a year sounds like a great idea, it should really be reserved for situations that absolutely require it.

Sadly, in today’s economy the unexpected seems to happen more often than naught and a lot of people have found themselves out of a job with little to no notice making it hard to keep up with their bills and mortgage obligations. This is where a fully prepaid mortgage can really shine. A prepaid mortgage can help you stay in your home and give you time to seek meaningful employment or get your financial affairs in order.

The best part of a fully prepaid mortgage is that approvals are based on the amount of equity you have in your home and common sense. Credit and income aren’t really a factor because the lenders we deal with understand that bad things happen to good people every day. They understand that just because someone doesn’t have the financial means to pay today doesn’t mean that they won’t rebound.