Definition: The term "mortgage with extra payments" refers to a situation where a borrower takes out a mortgage loan, but they add extra payments to it. The extra payments are generally made during the initial terms or months of the loan, rather than at the end of each payment period. For example, if you take out a home equity loan, you may pay an extra monthly amount to keep your account balance above a certain threshold before applying for a new mortgage with a higher interest rate. This is called "extra payments" because it adds additional cost or risk to the loan. In some cases, this extra payment may be made on a regular basis, such as every six months or annually. It can be a way for borrowers to negotiate lower monthly payments or get their loan terms adjusted in exchange for lower monthly payments. The term "extra payments" is often used with respect to loans that are used to purchase a home, particularly if the borrower is trying to finance a large down payment on a house. In this case, the extra payments may be made by the borrower after making their first mortgage payment or at the end of each month for a set period. It's important to note that these terms and conditions can vary depending on the specific lender and loan program. If you're unsure about your options, it's always best to seek advice from a financial professional who can provide you with detailed information about the terms of your mortgage or any other loan you are considering.
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