LoanWeb Quick Quote
pre payment penalties
8. Pre payment penalties
A pre payment penalty occurs when a mortgage is paid off prematurely in its
early years, typically when a buyer sells the property. Loans with pre payment penalties
have fallen out of favor and in many localities are not legal. Be sure to ask if the loan
you are applying for carries a pre payment penalty, so you dont have any surprises
when you go to sell your property down the road.
You can wind up with surprise capital gains tax at the federal, state or local
level when you sell your property. You dont want a surprise mortgage pre-payment
penalty on top of that.
compete for your business if you click below to apply online for your mortgage through our
preferred affiliate, LoanWeb.com: