Posted on: 25th Nov, 2013 12:40 am
If I refinance my loan in to a different loan, then will I have to pay a pre-payment penalty?
Hi BBC,
If you refinance the loan before the pre-payment penalty period gets over, then you will have to pay the pre-payment penalty.
Take care
If you refinance the loan before the pre-payment penalty period gets over, then you will have to pay the pre-payment penalty.
Take care
You may not have a pre-payment penalty at all. Most loans that were originated with pre-payment penalties were originated in 2007 or earlier. Check your closing paperwork to see if there is a "pre-payment penalty rider" in it. The longest ones lasted for like 5 years max. Most were for 2/3 years.
Most loans do not have a prepayment penalty, but, some do.
Either check your paperwork or simply call the lender and ask if there is any prepayment penalty if you refinance now.
Why look for and try to read a bunch of mortgage papers when all it takes is a simple 5 minute phone call. That is why lenders/servicers have a Customer Service telephone number--so you can call and ask questions. They get paid to answer your questions.,
Either check your paperwork or simply call the lender and ask if there is any prepayment penalty if you refinance now.
Why look for and try to read a bunch of mortgage papers when all it takes is a simple 5 minute phone call. That is why lenders/servicers have a Customer Service telephone number--so you can call and ask questions. They get paid to answer your questions.,
