When refinancing or selling is it in the law?
2006-09-26 10:09:34 · 3 answers · asked by nicholas v 1 in Business & Finance ➔ Renting & Real Estate
prepayment penalties generally apply to sub-prime loans.
2006-09-26 10:23:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Pre-payment penalties are charged by each bank specifically. You should never take a Prime loan with a prepayment penalty. Those are usually reserved for suc-prime loans (loans for people with bad credit or too little income). Each state dictates the maximum prepayment penalty...never more than 5% and never more than 5 years
2006-09-26 17:35:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Some states do not allow a prepayment penalty on a principal residence loan unless you are a federally chartered institution. You might want to go and check the links provided by our research department for the answer.
LAWS: http://www.rilin.state.ri.us/scripts/search/search.asp?SearchWhere=/Statutes/ go to the property law sections and financial institutions
STATE’S WEB SITE: http://www.ri.gov/ check the financial institutions divisions of your state.
Buena Suerte
2006-09-26 18:06:17 · answer #3 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋