2006-08-01 01:35:55 · 8 answers · asked by GARETH L 1 in Business & Finance ➔ Personal Finance
What I mean by exit fees is when my 3 year deal is over my mortgage company they are going to charge me 1 months interest to move to another company which I think is illegal? Can I get around this by claiming this back in the small claims court?
2006-08-01 01:56:05 · update #1
debt consolidation
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is:
http://umgarticles.atspace.com/debt-consolidation.htm
2006-08-01 22:13:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Nope. Penalties for terminating a mortgage early are routine on mortgages which offer an incentive in the first short period but then lock you in for a specified time afterwards. Some lenders may allow you to get round paying the penalty if you take out a further mortgage with them, but otherwise they can and will enforce the early termination penalties.
2006-08-01 01:43:32 · answer #2 · answered by eriverpipe 7 · 0⤊ 0⤋
These are called prepayment penalties and are very common. They range from 1% of the loan to 6 months interest, as the highest I've seen!
The original paperwork you signed will have it in there, but it's likely it wasn't explained to you - this is typical. Look in your paperwork for the page titled "Note" and it should be in there if you read it carefully. If it's not there, sometimes there's a "Prepayment Penalty Rider" which is a separate paper from the Note that explains it.
2006-08-03 18:15:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
All exit fees (or any other names that the lender may use ) will have been notified to you at the time when your loan was taken out and therefore are payable. As one of the other answers pointed out, if you are using the same lender for a new loan any early repayment fees may be waived.
2006-08-01 01:57:17 · answer #4 · answered by Lewis F 1 · 0⤊ 0⤋
"Prepayment Penalties" are illegal and unenforceable. This is for a home mortgage only. Is that what you mean by "mortgage exit fees"?
2006-08-01 01:39:38 · answer #5 · answered by miketorse 5 · 0⤊ 0⤋
Yes they can and do and it is perfectly legal - you should have read the terms of your mortgage offer which would have included an early repayment overhang - this is what you are paying. Sorry hun but it is perfectly legal - although very annoying.
2006-08-01 07:19:26 · answer #6 · answered by MSMORTGAGE 3 · 0⤊ 0⤋
Read your mortgage. It should say in there what they can charge you for.
2006-08-01 06:40:22 · answer #7 · answered by hirebookkeeper 6 · 0⤊ 0⤋
I don't think that they are illegal if they were included in the contract.
2006-08-02 08:03:16 · answer #8 · answered by Veritas 7 · 0⤊ 0⤋