As per laws in Virginia, for a first mortgage loan a 2% prepayment charge of the amount of the prepayment can be imposed by the lender.
In addition it is required that the home should be occupied by the borrower for this law to be effective.
Colin
katie Guest
Posted: Wed Nov 22, 2006 9:51 pm Post subject: prepayment penalty on home loans in virginia
In Virginia, prepayment penalty is charged on for a loan secured by a mortgage or a deed of trust on a home which is already occupied or will be occupied. The penalty shall not exceed 2% of the amount repaid as the prepayment
Posted: Wed Nov 22, 2006 10:49 pm Post subject: RE:
Hi Guest,
No lender can collect prepayment penalty on loans which are secured by real property having 1 to 4 family residential dwelling units. But this law is applicable only when the prepayment results from the enforcement of the lender's right to call the loan due on account of the sale of the property against which the loan is taken.
Thanks,
Sara
sharon Guest
Posted: Wed Feb 11, 2009 8:46 pm Post subject: prepayment penalty fha loan
can a prepayment penalty be over the life(30 years) of the loan?
colin
