Posted by Randy (SD) on May 12, 2005 at 10:27:39:
Have you asked your present lender if the prepayment penalty would apply if they did the refinance? You’re interest savings amounts to $2.05 per $1000 (per month) while you don’t say what the amount of the re-fI is, if it’s $50,000 your monthly savings is about $100 versus 20% prepayment penalty ($10,000) I would say don’t do it.
Prepayment Penalty question?? - Posted by Rob
Posted by Rob on May 12, 2005 at 10:14:46:
I bought a home in December 2004 at a high interest rate (9.9%)and was aware of the early payoff penalty which is 20%. I’m now in a position to refinance the property becasue of my creidt score being increased to a rate of 7.0%
Is there any way to get around an early pay off penalty with a lender ?
Rob
Re: Prepayment Penalty question?? - Posted by john
Posted by john on May 12, 2005 at 13:51:13:
Check your numbers! A 2% prepayment penalty is common a 20% is unheard of. Just thought it might be worth it to double check this