my loan adjustment is 2 years and my prepayment penalty is 3 years; is this possible
2006-11-24 10:18:37 · 3 answers · asked by sgreat 1 in Business & Finance ➔ Personal Finance
Yes, it happens all the time. I always insist the penalty period match the fixed rate period when originating mortgages.
It helps avoid costly payment increases while being trapped by a hefty prepay penalty.
In most cases, it makes financial sense to ride it out if at all possible. Think of it as a bigger tax deduction.
2006-11-25 08:56:13 · answer #1 · answered by jenay672001 3 · 0⤊ 0⤋
The prepayment penalty period and the loan adjustment period are two separate items of your contract. The 3 years for the prepay will continue regardless of the loan adjustments.
2006-11-24 10:22:36 · answer #2 · answered by oakhill 6 · 0⤊ 0⤋
Yes, it is possible. You may need to just pay the prepayment penatly and take advantage of the lower rate. You will make it up on the back with your tax credits for having a mortgage.
2006-11-24 10:21:36 · answer #3 · answered by ShacklesOff.com 3 · 0⤊ 0⤋