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

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Due to the number of rule-breaking comments this post was receiving, especially low-quality and off-topic comments, the moderation team has locked the post from future comments. This post broke no rules and received a number of helpful and on-topic responses initially, but it unfortunately became the target of many unhelpful comments.

IndexBot

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

gooberfaced

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

Dredly

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.

PDQBachWasGreat

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

Coco_Bueno