Topic Page: Prepayment Penalty
If you make a prepayment, or if you payoff the loan early, the lender loses the money it would have made in the future. With that in mind, many lenders protect themselves from early prepayments on loans by forcing the homeowner to pay a penalty if he or she decides to pay off the loan before the end of the loan term. These penalties are known as prepayment penalties. Learn more here about prepayment and prepayment penalties.
Mortgage Prepayment May Not Be The Best Idea
Mortgage Prepayment May Not Be The Best Idea. For some people, making a mortgage prepayment can be just fine. For others, prepaying a mortgage in full can add stress if money is needed in the future. And for others, there may be a balance between a partial mortgage prepayment and keeping sufficient cash on hand for expenses that may come up in the future.
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Sep 10, 2009
Seller Closing Costs Updated
Seller closing costs generally come as a surprise to home sellers, particularly when home sellers find out that they’ll have to pay anywhere between 2 to 7 percent of the sales price in fees and costs. Here's an updated list of closing costs you may incur when you sell a house.
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Jun 24, 2009
HUD Secretary Shaun Donovan Speaks To National Association Of Real Estate Editors
Secretary of Housing and Urban Development Shaun Donovan spoke at the National Association of Real Estate Editors Annual Conference. Secretary Donovan spoke about how HUD is involved in President Obama's plans for the economic crisis and the Making Home Affordable act, FHA reform and how that will affect the housing markets, consumer protection, and building more sustainable communities. The transcript of the speech is below. [See the blog for more details from Ilyce at the National Association of Real Estate Editors conference.](http://www.thinkglink.com/blog)
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Jun 18, 2009
Prepaying Mortgages With Low Interest Rates
Interest rates are at record lows. Does it make sense to prepay your mortgage when you have a really low interest rate? What's the best way to prepay a mortgage loan with a low interest rate? How can you ensure that the mortgage lender knows when you are sending in prepayments to your mortgage loan? It's up to you to track your mortgage loan prepayments and it's easiest if you prepay the same amount every month.
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May 28, 2009
Mortgage Industry Group Calls For Regulation
Perhaps they saw the writing on the wall. The Mortgage Bankers Association is calling for federal regulation of the mortgage lending industry. And not only do they want it, they're offering bullet points for what Congress should include in the legislation!
Is it a conflict of interest? MBA is…
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Posted on:
Mar 24, 2009
Making Homes Affordable: Refinance
Along with the launch of the MakingHomesAffordable.gov website, the White House released an updated FAQ about the refinancing and modification programs. Here's the refinance FAQ. I'll post the modification FAQ next.
BORROWER FREQUENTLY ASKED QUESTIONS UPDATED MARCH 18, 2009
What is “Making Home…
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Mar 20, 2009
Mortgage Lending Reform Testimony
Sandra F. Braunstein, Director, Division of Consumer and Community Affairs, Federal Reserve
Mortgage lending reform
Before the Subcommittee on Financial Institutions and Consumer Credit, Committee on Financial Services,
U.S House of Representatives, Washington, D.C.
March 11, 2009
Chairman Gutierrez…
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Mar 11, 2009
Prepayment Penalty Laws Depend On State
When a homeowner buys a home or refinances his or her mortgage, the homeowner will borrow money from a lender, paying off any existing loans and leaving only one loan on the property. If you payoff the loan early, the lender looses the money it would have made in the future. With that in mind, many lenders protect themselves from early prepayments on loans by forcing the homeowner to pay a penalty if he or she decides to pay off the loan before the end of the loan term.
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Posted on:
Feb 23, 2009
Validity Of Prepayment Clause If Mortgage Is Sold
A prepayment penalty requires a homeowner to pay a fee to pay off a loan. It's rarely a good idea to get a loan with a prepayment penalty. What most borrowers don't understand is that the prepayment penalty kicks in even if you're selling your home, not just refinancing it.
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Posted on:
Feb 23, 2009