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No mortgages don’t have early payoff penalties. The bank doesn’t really care. They’ve probably sold your mortgage off to be packaged in a bond anyways. They’re
by nemo44x 3y ago
No mortgages don’t have early payoff penalties. The bank doesn’t really care. They’ve probably sold your mortgage off to be packaged in a bond anyways. They’re mainly in the business of selling loans. There’s a big margin on that. They’re more than happy to payoff your old one and write a new one and collect those fees.
- ethbr1 3y agoIs there anything that prevents it though? If not, I assume someone would have written a 3/1 ARM with predatory early repayment provisions, so I'm guessing there's probably a conformant mortgage guideline (e.g. from *Mac) that prevents clauses like that.