I unfortunately have a pre payment penalty set up for 3 years! ouch. I just was made aware. But how does this really effect me? In terms of re-fi or sale? Thank you I do apprecite your time.
2007-04-14 06:14:15 · 3 answers · asked by kd 1 in Business & Finance ➔ Renting & Real Estate
It means you owe all interest due no matter if you pay if off now or through the life of the loan. It makes it hard to refi because of the extra you would need to pay off the interest
2007-04-14 06:19:12 · answer #1 · answered by calired67 4 · 0⤊ 0⤋
That means exactly what is says, if you pay the loan off in less than three years you pay a penalty!!!! Check the conditions because it may not include sales but it would definitely include a re-financing because they want you to pay them whatever their interest rate is, not get a lower one.
2007-04-14 06:19:25 · answer #2 · answered by banananose_89117 7 · 1⤊ 0⤋
A prepayment penalty is a monetary penalty enforced upon a borrower when he or she pays a loan off earlier than was originally agreed.
2007-04-14 15:00:00 · answer #3 · answered by maria isabela l 1 · 0⤊ 0⤋