if i have a prepayment penalty on my home loan, do i have to pay it if i sell my home?

Answer 1

Depends on if it is a soft or hard prepay

soft prepay means you can sell without prepay but not refinance

hard means you cannot sell or refinance without paying a penalty

Check your loan doc's and see which one you agreed on.

Answer 2

It depends if it is a hard or soft prepay, and the term of the prepay 1-3 years. Each state has laws in Michigan the max is 1% of loan balance first year & Calif is 6 months interest. So I suggest you contact the lender and ask, then get a second opinion. Some lenders will try to get the moon but only to get Cheese. I don't know your state to tell you, post and I will look back for you. Best.

Answer 3

properly, while the homestead sells, is she entitled to a million/2 of any earnings? if so, sell it and pass on, she eats a million/2 of the penalty additionally. If the home is legally yours and you do not have a compelling reason to prepay and sell, i'd stay placed until 6/09, by way of fact 9K continues to be a particularly stiff kick in the butt. in case you have the money, why no longer placed it in a 5% money industry and extract some money month-to-month to help pay the non-public loan.

Answer 4

Depends on the terms, but likely yes.

As a rule, try not to enter into loans with prepayment penalties.

Answer 5

Yes here is how it works

If its a 3 year prepay ,The 1st year is 3% of your balance , the next year its 2% of your balance , the last year its 1% of your balance ,or as stated in you mortgage. Either way this is how you figure out .

Answer 6

Oh, yeah, the mortage company will figure it in your loan payoff..they will get the extra money.

Answer 7

depends on if its a hard or soft prepay.

Answer 8

Yes, you will need to make good all outstandings.