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Updated about 4 years ago on . Most recent reply

User Stats

922
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Jim Goebel
  • Real Estate Investor
  • Des Moines, IA
533
Votes |
922
Posts

Does pre paying on Mortgage increase our rates?

Jim Goebel
  • Real Estate Investor
  • Des Moines, IA
Posted

I just came across this video on WSJ.

What stopped me was seeing that a PRE PAYMENT on a mortgage actually reduces the value of a note/mortgage to the investor on the secondary market.

If this is the case, wouldn't it follow that we need to pay higher rates to compensate an investor for that lower value?

Our rates aren't terrible but they've crept up compared to what we used to get, and we've been paying down notes pretty aggressively at times.  

Any note investors out there care to weigh in?

Here's the WSJ article in question ---- it's a video and the content is around 2:10 and on.

https://www.wsj.com/video/how-...

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