Home arrow Mortgage Forums arrow Loan Talk for First Time Home Buyers arrow

What is the max prepayment penalty on a mortgage

Author Message
Icon Mini Profile marklavender1





Joined: 13 Sep 2009

Posts: 120

-0.14 Dollars($)
Post Posted: Mon Sep 28, 2009 12:46 am    Post subject: What is the max prepayment penalty on a mortgage
Like 0
Dislike 0

What is the max prepayment penalty on a mortgage
Icon Mini Profile Niicss
Niicss




Joined: 03 Oct 2005

Posts: 4770
Location: New Jersey
499.28 Dollars($)
Post Posted: Mon Sep 28, 2009 1:40 am    Post subject:
Like 0
Dislike 0

The maximum pre-payment penalty would depend upon the clause as mentioned in your mortgage doc. The mortgage documents would specify as to what type of pre-payment penalty the lender may charge you.
_________________
Good is the Enemy of Great.
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12346
Location: bloomfield, ct
53.01 Dollars($)
Post Posted: Mon Sep 28, 2009 8:31 am    Post subject:
Like 0
Dislike 0

no such thing as "maximum"...a lender and a borrower can negotiate whatever terms they wish when agreeing on a mortgage loan.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
Icon Mini Profile annyb27





Joined: 07 Jul 2009

Posts: 144

-1.08 Dollars($)
Post Posted: Thu Oct 01, 2009 12:34 pm    Post subject:
Like 0
Dislike 0

I think prepayment penalty differs as per region(location)
Icon Mini Profile jveenstra
jveenstra
Community Expert
Community Expert

best lender badge

Joined: 10 Nov 2008

Posts: 1256
Location: River Edge, New Jersey
264.15 Dollars($)
Post Posted: Thu Oct 01, 2009 2:17 pm    Post subject: Prepayment Penalty
Like 0
Dislike 0

Each state has its own maximums for prepayment penalties. Those state laws probably just cover lenders who are regulated/chartered by the state.

The states ask Federally chartered lenders to abide by their regulations, but, a state has no authority over any federal institution.

The federal government just established some prepayment penalty regulations:
1. Can not have any prepayment penalty that lasts longer than two years
2. If refinance with the same lender, no penalty
3. The payment of principal and interest can not change over the first four years of the loan.

These are new regulations and not clear yet what it controls--maybe only primary residences--owner occupied properties, and maybe only hich cost loans.

_________________
John Veenstra, Sr Mortgage Consultant
Approved Funding Corp
Licensed NJ NY CT PA
201-833-0123x278
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.076 seconds.