Is it legal in Illinois to have a prepayment penalty on your mortgage?

Answer 1

I thought they did away with prepayment penalties on mortgages. wow, I just looked on the Internet and they HAVE NOT done away with the penalty.. and it is enforceable. Check your loan papers.. it should state some where in the approximately 48 pages of documentation what the penalty is.. i.e. you can't pay off the loan for 3 years w/5 year limitation. So, if you had your loan for 8 years the prepayment penalty has expired and you have nothing to worry about.

Answer 2

Yes. Any ARM loan can have a prepayment penalty but only fixed rate loans below 8% can have a penalty. Your loan may or may have have a penalty. Read the mortgage note carefully.

Answer 3

Paying the interior maximum loan right down to $one hundred would not help except it is a HELOC type of non-public loan. a classic own loan with a Pre-charge Penalty (PPP) will penalize you each time you pay greater suitable than 20% of the stability. There are 2 kinds of PPP's. gentle and frustrating. verify to make certain which type yours is. no count if it is a gentle penalty you are able to sell the homestead an go through no penalty. no count if it is frustrating, you will pay the penalty in case you sell or refinance. in case you refinance with the comparable enterprise, they gained't waive the penalty. some lenders did this interior the previous, yet now no longer do. Their reasoning is why provide you a greater efficient fee while they have you ever locked on the instant larger fee. in case you do finally end up paying the PPP, verify inclusive of your Tax consultant as this could be a "write-off" for you.

Answer 4

Yes, check your mortgage documents to see if your loan has one.

Answer 5

depends on if you signed an arm or fixed rate, a nd the terms.
Take a look at your note. that will tell you what you agreed too, If you need help orwant to refinance, send me e-mail
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Answer 6

YES