Allows partial or full payment of the principal at any time, without penalty. A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty. Qualifies you for a mortgage before you start shopping. Voluntary payments in addition to regular mortgage payments. The amount borrowed or still owing on a mortgage loan.
Interest is paid on the principal amount.
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage. Re-negotiation of a mortgage loan at the end of a term for a new term. Usually has a shorter term and higher interest rate than the first mortgage. The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.