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When my mortgage was sold to a big bank I started getting charged a fee for "prepayment" (basically I'd do another payment against the principal once a year or
by gigel82 3y ago
When my mortgage was sold to a big bank I started getting charged a fee for "prepayment" (basically I'd do another payment against the principal once a year or when I had extra cash, which was a non-issue before the sale).
Refinanced with a local CU and stayed with them ever since.
- lotsofpulp 3y agoIs this in the US? I would be very surprised if the prepayment (or any) terms are allowed to be changed. If in the US, I would be surprised to find out about prepayment penalties at all. https://money.usnews.com/loans/mortgages/articles/what-is-a-loan-prepayment-penalty https://money.usnews.com/loans/mortgages/articles/what-is-a-... > A lender cannot assess a prepayment penalty unless the penalty was included in the original terms of the loan. > According to the Federal Register, Dodd-Frank Act provisions “generally prohibit prepayment penalties except for certain fixed-rate qualified mortgages where the penalties satisfy certain restrictions and the creditor has offered the consumer an alternative loan without such penalties.” > For lenders that do charge these penalties, prepayment penalties cannot be imposed after the first three years of the loan term.
- jjav 3y ago> When my mortgage was sold to a big bank I started getting charged a fee for "prepayment" Are you sure? Whether a mortgage has prepayment penalties or not is one of the things that is specifically declared in every mortgage contract I've ever seen. They can't just change it after the fact.