2006-11-22 08:04:24 · 14 answers · asked by thinguyen27 1 in Business & Finance ➔ Renting & Real Estate
NO.....usually there is no fee for "prepayment" of a mortgage. Read your mortgage doc, it will be stated in plain language like....No prepayment penalty.
Mike
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2006-11-22 08:09:12 · answer #1 · answered by MN-Mike 4 · 0⤊ 0⤋
Every lender is different. This is why it is so important to read the fine print before signing. Check your Security Agreement/Note for a clause relating to "early termination/payoff/prepayment penalties". Some lenders will require you to pay a "penalty/fee" for paying your mortgage off early. Many do this in exchange for covering/reducing closing costs/fees associated with getting the loan. It also may have helped to you obtain a lower interest rate... The fee for payoff could also be pro rated interest accrual through the date of payof quoted on your payoff statement. Sometimes, if you refinance with the same lender, they will discount or waive the penalty, more likely than not. You should call the customer service department of your bank/mortgage company if you have any questions on interpreting the verbiage in your promissory note/agreement.
2006-11-22 08:38:20 · answer #2 · answered by asweetangelseyes 2 · 0⤊ 0⤋
I honestly don't recall that we had to pay a fee like that. Maybe some pro-rated something or another...but not an actual 'fee' to close it out. And I'm the one that did all of it. But I tell you what...if it means paying your house off...go for it! But yes, I would read the fine print, etc.
2006-11-22 08:18:33 · answer #3 · answered by TexasRose 6 · 0⤊ 0⤋
If you are paying your mortgage off too early, you must pay a fee. Or if you were ever late(even a day or so) you will have to pay that current interest.
2006-11-22 08:07:20 · answer #4 · answered by spool 3 · 0⤊ 1⤋
Some loans have prepayment penalties, others don't.
Some loans, like HELOC's used as purchase money, have clauses that you will pay certain costs if you have the loan for less than a year.
No one here has a copy of your loan documents ... but you do. Read them and find out.
2006-11-23 09:24:00 · answer #5 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
If you are paying out your mortgage early, there certainatley can be early termination fees
2006-11-22 08:07:33 · answer #6 · answered by kjay 6 · 0⤊ 0⤋
Sounds standard to me. It's a processing fee.
2006-11-22 08:06:05 · answer #7 · answered by Anonymous · 0⤊ 1⤋
It's probably a prepayment penalty. Check your loan docs for it.
2006-11-22 08:24:32 · answer #8 · answered by togashiyokuni2001 6 · 0⤊ 0⤋
Yea it sound right , for them to try a suck every last dime out of you they can.
2006-11-22 16:34:06 · answer #9 · answered by Anonymous · 0⤊ 0⤋
check your original agreement...sometimes there is an early pay-off penalty?!
2006-11-22 08:10:53 · answer #10 · answered by Becky 4 · 0⤊ 0⤋