#lending-practices

#lending-practices

As the name suggests, overpaying your mortgage is when you pay more than your contracted or agreed monthly payments. Why do this? Well, it's not just about getting the entire thing paid off quicker; it's also about reducing the overall interest you're due to pay. "Most mortgages are on an annuity basis, so you're paying capital and interest," says Hennessy. "Every month, the interest hits the capital balance that's outstanding on your mortgage, and it calculates in that mortgage repayment how much is interest.

The 2023 final rule aimed to modernize enforcement of the 1977 anti-redlining law, requiring U.S. banks to support community development and lend to low-income borrowers.