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As with most financial things it depends on location and time and specific conditions. Generally, its been illegal since 2014 nationwide to have a prepay penal
by VLM 6y ago
As with most financial things it depends on location and time and specific conditions.
Generally, its been illegal since 2014 nationwide to have a prepay penalty. In my state its been illegal as long as I've had a mortgage. In some weird but possible conditions its possible post-2014 to have a prepayment fee at the national level for a normal residential mortgage.
You'll see all kinds of random dates at the national level. From what I understand the 2010 Dodd-Frank act was the enabling legislation, the new rules came out in 2013, and went into effect in early 2014, but its all the same issue.
- bumby 6y agoIt depends on the conditions of the loan as well. I don’t believe any VA-backed loan can be assessed pre-payment penalties
- jmalicki 6y agoWhile it may not be an explicit penalty at time of prepayment, the risk of losing revenue due to prepayment/refinancing if interest rates drop is definitely modeled priced into the terms of the loan, just as the risk of you going bankrupt and not being able to pay is.