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| alicia gist |
 Posted: Thu Feb 24, 2005 1:10 pm Post subject: prepayment penalty |
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Investing Sr. Associate
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| Is there a way you can get out of a prepayment penalty? We have a 5% prepayment penalty on our 2nd mortgage. I would love to refinance, but I don't want to eat a prepayment penalty. |
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| eyesandearsjami |
| Posted: Thu Feb 24, 2005 3:20 pm Post subject: |
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Member Of The Month! February
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Alicia,
I work with a lot of clients who refinance their mortgages. I hate to say this but you'll probably have to eat the fee if you refinance. But make sure to read the fine print. Most of the prepayment penalties I've seen are only for the first 3 - 5 years. Also, these penalties usually go down each year. For example year 1 it might be 5%, year 2 4%, and etc.
Just recheck your mortgage documents and make sure this prepayment penalty hasn't already been released due to the length of time you've held the loan.
Hope this helps,
Jami |
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| JoiseyFamily |
| Posted: Fri Feb 25, 2005 5:38 pm Post subject: |
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Investing Associate
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| Ouch, I think you are going to have to eat the difference. If you do refinance, just remember, next time don't take a loan that has pre-payments. |
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| paula0000 |
| Posted: Sat Feb 26, 2005 3:01 am Post subject: |
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Investing Manager
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| I guess you need to balance the penalty with the money you will save in the long run. |
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| mrsboz |
| Posted: Sat Feb 26, 2005 10:03 am Post subject: |
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Investing Sr. Associate
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| Sorry but I think that you are stuck. That is one of the first things that I always ask. I guess a good lesson learned. We actually just bought furniture and I asked if there was a penalty for early payment. I always ask now. At least next time you'll know. I wonder though if the interest would be more or the penalty if you paid it off early. If you pay it off ten years early, say or the penalty which would be more? Something to think about. |
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| alicia gist |
| Posted: Thu Mar 03, 2005 1:51 pm Post subject: |
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Investing Sr. Associate
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