How to Avoid Mortgage Prepayment Penalties
Abstract
If you are like most people, you probably don't want to pay any mortgage prepayment penalties. Many people do not know how to avoid them. What is a Prepayment Penalty? A prepayment penalty is a fee that is charged by the lender if you pay off your mortgage early. This fee is typically a percentage of the total loan amount, usually as low as 2%, but can be much higher. If you have a $100,000 mortgage and a 4% prepayment penalty, you would owe the lender $4,000 if you paid off the mortgage early. What Causes Prepayment Penalties? Prepayment penalties are typically charged by lenders who offer teaser rates or other types of low introductory rates. These rates are usually only available for a limited time, and the lender wants to make Continued The post How to Avoid Mortgage Prepayment Penalties appeared first on FastExpert.