Posted by Michael Morrongiello on March 28, 2000 at 15:40:30:
If the lender is unwilling to waive their prepayment penalty then there is little you can do.
Wait the six months tiime frame to pass and then seek the VERY lowest refinancing rate and program she can qualify for.
Michael Morrongiello
Getting around extemely restrictive mortgage. - Posted by EdithandAllan
Posted by EdithandAllan on March 28, 2000 at 14:16:46:
Please help me out. Due to inexperience and credit problems, my mother is locked into a very bad mortgage. She used the equity in one income property to finance a new property, resulting in two ARMs at a two-year rate of 13.45%. The interest rate at that time will never be lowered, but may be raised. Additionally, there is a prepayment penalty of six months of interest.
In a matter of a few weeks all four apartments will be rented, instead of having having a no-verifiable income situation. Is there a way to get out of this mortgage and refinace once the apartments are all rented. I would appreciate any help and suggestions offered.
Re: Getting around extemely restrictive mortgage. - Posted by John Behle
Posted by John Behle on March 29, 2000 at 21:50:06:
Sometimes the lender will wave a pre-payment penalty if you refinance through them. Otherwise, they are usually enforceable. You would make up the interest penalty in about a year if you refinance.