Posted on: 22nd Dec, 2008 11:52 am
I am in a bad loan and trying to refi with a better bank. My current mortgage company wants 6 months of my payments, totaling over $8000.
hi meistro,
if a pre-penalty clause has been mentioned in your mortgage docs, then i don't think it can be dismissed. you will have to pay the pre-penalty if you want to refinance the mortgage now.
you can check with your present lender whether they will charge the pre-penalty if you refinanced the mortgage with them. if they are giving you good terms and conditions and not charging the pre-penalty charges if you refinanced with them, then you should go ahead and refinance with them.
thanks
if a pre-penalty clause has been mentioned in your mortgage docs, then i don't think it can be dismissed. you will have to pay the pre-penalty if you want to refinance the mortgage now.
you can check with your present lender whether they will charge the pre-penalty if you refinanced the mortgage with them. if they are giving you good terms and conditions and not charging the pre-penalty charges if you refinanced with them, then you should go ahead and refinance with them.
thanks
a prepayment penalty is potentially negotiable. by all means, ask if it can be waived; and, as jameshogg has also suggested, see if you can obtain a refinance with that lender and ask for waiver of the penalty also.
If my loan was sold to another company after a year, does the pre-payment penalty still apply?
Yes it does.
