Prepayment Penalties – Prepayment Penalty Provisions in the Contract
Always ask where the prepayment penalty provision is in the contract. One mistake many borrowers make before they close the mortgage is not reading the provisions of the contract they have with the...
View ArticlePrepayment Penalties – Prepayment Penalties in Prime Loans
Prepayment penalties can be advantageous in prime loans. If you are prime borrower, you can negotiate for lower interest rates on your mortgage if you take on a prepayment penalty. Many lenders are...
View ArticlePrepayment Penalties – Negotiating the Terms of Your Prepayment Penalty
You can negotiate the terms of your prepayment penalty. Prepayment penalties are common among subprime mortgage loans because borrowers who avail of them have a higher chance of refinancing when their...
View ArticlePrepayment Penalties – Prepayment Penalty and its Benefits to the Borrower
Prepayment penalties should always hold a benefit to the borrower. When you decide to include a prepayment penalty in your mortgage, you must always think about the benefit that you can derive from it....
View ArticlePrepayment Penalties – The States on Prepayment Penalties
There are some mortgage loans and some states that do not require or have outlawed prepayment penalties. FHA loans, VA loans, and USDA loans do not have prepayment penalties. This is a big plus for...
View ArticlePrepayment Penalties – 20 Percent Advanced Prepayments Without a Penalty
Lenders usually allow up to 20 percent advanced prepayments without a penalty. This is standard practice among most lenders. You can make partial payments of up to 20 percent of the loan balance each...
View ArticlePrepayment Penalties – How to Get Rid of Prepayment Penalties
It is nearly impossible to get rid of the prepayment penalty once the loan closes. Rarely will you be able to waive the prepayment penalty once you have closed the loan and you only “discovered” it...
View ArticlePrepayment Penalties and Other Loan Features in the Good Faith Estimate
Prepayment penalties and other loan features are clearly presented in the Good Faith Estimate. Before, prepayment penalties and other required disclosures of the Truth in Lending law were not made...
View ArticleRefinancing Unveiling the Mystery – When Refinancing is not a Wise Option
When Refinancing is not a Wise Option There are times, however, when refinancing will mean being on the losing end of the bargain. One of these times is when you are already well-advanced into your...
View ArticleTen Things to Avoid when Getting a Mortgage – Avoid Prepayment Penalties
Avoid prepayment penalties as much as possible. Prepayment penalties are provisions in the contract with a lender that states that borrowers will pay a penalty in case the entire loan is paid off...
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