I discovered a prepayment penalty clause on my mortgage agreement – what to do?

Unfortunetly there isn't anything you can do, unless you are willing to pay the prepay penalty fee. Are you planning on refinancing or selling your home?

Sorry but your not going to get a magic bullet. Unless prepayment penalties are illegal in your state... you will have to pay it.

Although if you are in financial hardship the lender may be willing to negotiate the penalty with you... not likely though.

Let me know if you have any more questions

other than paying it, your only option is to keep that mortgage in place until such time as the penalty disappears - assuming that there is a lifespan to it (for example, 3-year or 5-year).

Thats true.

But call your bank and see if they can work with you in modifying that clause

yeah....good luck!

Anythign is possible in this economy and market!

Some banks WILL waive the pre-pay penalty if you are selling your home AND you finance the new home with them.