Loan payoff discount - Posted by Rob


#1

Posted by Dave T on February 23, 1999 at 23:37:57:

Assuming that you have a conventional bank loan, and that your payments are current, then it is unlikely that your loan would be discounted for early payoff. Indeed, you should confirm that you would not have a pre-payment penalty.

The bank has no incentive to discount your loan even for an early payoff. Even if you did get the bank to agree to a discount and you had someone with the cash to follow through with you, why would you want to refinance? You are just replacing your old loan with a new loan. Perhaps you could clarify the objective you hope to achieve.

If you have enough equity in the property now to do a cash out refinance, why not just do it.


#2

Loan payoff discount - Posted by Rob

Posted by Rob on February 23, 1999 at 24:44:43:

I was wondering if this is possible or not. If I found someone with cash to pay off my home loan at a discount could the I then refinance the new loan and put some money in the pocket of the investor paying off my loan. If this would or could work or if any one has done something like this let me know. It sounds to good to be true, but who knows.