Article: Mortgages - Don?t Get Pounded By Prepayment Penalties

Mortgages - Don?t Get Pounded By Prepayment Penalties

Many people make a major mistake when applying for a mortgage. They are so relieved to get the loan that they fail to pay attention to prepayment penalties in the loan documents.



Prepayment Penalties



With the refinance craze of the last few years, many borrowers have been surprised to find they are locked into their loan with prepayment penalties. Boiled down, these penalties require borrowers to pay fees if they pay off the loan prior to a certain point in time. By including such language in the loan documents, some lenders are trying to ensure they will recover a certain amount in interest on a loan as well as reach a certain maturity date on the loan. Lucky you.



Prepayment penalties come in a variety of forms. First and foremost, state law co...
 

View Article:
Mortgages - Don?t Get Pounded By Prepayment Penalties

Back To Articles Directory Listing Page

Home | Back To Articles Directory

Send your comments, Suggestions or Queries regarding this site at roseindia_net@yahoo.com.

Copyright © 2006. All rights reserved.