6 month offset for Down payment funds

[Rocky]

Guys,

My pre-construction condo final installment before occupancy is due July 2010, with that i would have completed 70K payment for a preconstruction condo which totally costs me around 300K and hence would be looking for a mortgage of 230 K

However i will have some 30K extra become available to me in 6 months after occupancy. If i could have had 30K at the time of occupancy i would have paid it right there and reduced my mortgage to 200K

However under the given conditions -what would be the best course of action ? Should i take 230 K mortgage and then pay 30 K as soon as i get it. IS there a penalty to it ? any other idea or advise from experts is welcome.

thanks

 

[cdr108]

some FI will allow you to pay down up to 15% annually, at anytime, without penalty.
review your mortgage contract and ask your FI to confirm.

 

[Rocky]

some FI will allow you to pay down up to 15% annually, at anytime, without penalty.
review your mortgage contract and ask your FI to confirm.

Thank You CDR, I will check with my FI, excuse my stupid question but i would assume that should reduce my monthly mortgage payment accordingly as well correct? as the bowrrowed amount gets reduced ?

 

[cdr108]

Thank You CDR, I will check with my FI, excuse my stupid question but i would assume that should reduce my monthly mortgage payment accordingly as well correct? as the bowrrowed amount gets reduced ?

it would; however, i recommend that you continue paying the same monthly amount if you can manage financially.

accelerating payments will reduce your total term and interest paid over the mortgage.