Posted by william Earl on January 08, 2003 at 23:06:31:
Ted,
Quick suggestion about life. If you don’t want to do it DON’T SIGN IT. As a broker I’ve never had anyone back out at closing, but I fully disclose everything! I sometimes become redundant because I don’t want to loose a loan at the last minute. I’m sorry other brokers haven’t be as upfront with you as I believe they should be.
You can negotiate with your primary lender to see if they will refi you at a lower rate, adjust the pre-pay for your situation, etc. The big questions are: Are you current on your payments?
If not have you made arrangements with your lender?
Are your other bills current?
HOW MUCH is your pre-pay?
What state are you in (some states make it illegal to do a prepay on 2nds but it’s hard to enforce.)
If you want to e-mail with the specifics I might be able to give you a direction to pursue with a local mortgage broker.
Uncle Willy
I recently bought a house but at the closing the
lender put a document in the loan package that stated
that I would have to wait 5 yrs before I can refi or
pay a pre-payment penalty. I had made a large downpayment
that I didn’t want to loose so I signed the document
reluctantly. I have a first and a second mortgage to
avoid pmi, but they are at high rates.How can I get out
of this without paying a pre-payment penalty. I’m open
to all ideas. Thanks in advance.
Re: Paying a pre-payment penalty to refi - Posted by Charles Clark
Posted by Charles Clark on January 09, 2003 at 08:47:35:
HI Ted,
I want to second what William said. If people get unpleasant surprises at closing-walk away, or get the lender to change back to the original deal. I loose deals in two ways. 1) Quote the deal as presented and someone else comes in lower with hidden extras that come up at closing, or 2) quote the proper rate for the deal, another broker comes in very low, the client forgets everyone else, and then the other broker slowly raises the costs. "oh, I forgot, it is a 5 year prepay, "oh gee, the lender has to have a lower LTV, “oh gee, the lender has to have a higher rate.”
I am not and I do not think that William is going to change the way we do business, because we do not get upset clients calling us at closing.
Charles Clark