prepayment penalty: ARM Nightmare: A Real Life Story
- 06/14/07 11:38 PM
I want to share a story with you. It fits in perfectly with the current market and the outrageous number of homeowners who are facing the reality of adjusting mortgage rates and increasing payment. Back in May 2005, I had a customer referred to me by another customer. He was a first time homebuyer and going through the mortgage process for the first time. We sat down together and discussed mortgage financing and what type of mortgage would be the best fit for his situation. I set up a mortgage option for him offering him a 30-year fixed mortgage at 6.125%. It … (20 comments)
prepayment penalty: Prepayment Penalties: Important Information for Buyers and Sellers
- 06/12/07 01:30 PM
Some mortgage notes contain a prepayment clause. What is it? This s a clause in the mortgage that requires that the borrower pay a prepayment penalty against the unearned portion of the interest for any payment made ahead of schedule. Lenders are forward thinkers. When a lender writes a loan, if they think the borrower will likely pay the loan off early, there is a heavy chance there could be a prepayment penalty on the loan. In the past couple years, during the hot subprime market craze, we have seen many subprime lenders putting a prepayment penalty on their loans. For example a … (17 comments)
I want to share a story with you. It fits in perfectly with the current market and the outrageous number of homeowners who are facing the reality of adjusting mortgage rates and increasing payment.
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