While I understand the second mortgage is forgivable after 5 years, when would a teacher be required to payoff the $7,500 second mortgage?
Payment would be required if any of the following occurs within 5 years of the closing date:
- Ceases to reside in the property
- Prepays or refinances the first mortgage
- Sells, transfers or otherwise disposes of the property
The loan payoff calculation is $166.67 for each full month remaining on the loan term.