Yahoo Answers is shutting down on 4 May 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Need a Mortgage for 20k bank wont do less than 40k. Can I...?
I have most of the cash for the home, but am short 20k. The bank wont do mortgages for less than $40k, for what ever silly reason. Can I take out the loan for $40k and then write them a check for $20k of the money they just gave me? Or do they have rules against that sort of thing because they want to collect interest on all 40k?
3 Answers
- Anonymous1 decade agoFavourite answer
You need to read the rules on the mortgage they are offering you carefully. As long as there are no prepayment, early payment, or balloon payment penalties, you can do exactly what you are asking.
However, I would advice you to wait at least 90 days after closing just to make sure all of their ducks are in a row. Plus, I would recommend that you make a small "additional principal payment" ($500, for example) first. Make sure that they process everything correctly and to your satisfaction.
Banks are notorious for messing things like this up. Credit unions are a little better.
BTW the reason they don't like to make small loans is that they can't make any money on them. It is a giant pain for a tiny little interest payment. Doesn't make sense to the bottom line. I'm a little surprised your limit is $40k. Many areas have a minimum of $75,000 or higher.
