Bank won’t let us pay down the principal on our mortgage. Can they do this?

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Pull out your mortgage documents and start reading what terms you agreed to when you bought the house.


if they are, re-fi immediately to someone else that won’t have this restriction. if you are overpaying even a bit you’ll save money by paying off early


This would be covered by a prepayment penalty clause. If your Final Closing Disclosure says that there IS a penalty for prepayment, then the lender is probably in the right. If it says there is NO penalty for early payment, then you need to have the bank explain the discrepancy. If that isn’t satisfactory, you can file a complaint with the CFPB and let them make a determination.


The terms of your contract should tell you what’s allowable and what’s not.