Posted by JT - IN on August 27, 2001 at 07:33:55:
Anon:
The “pre-payment police” are up to speed on this one, heading you off at the pass, as there is normally a P/P penalty anytime you exceed a principal payment of 20%, or more of the original loan, in any one year.
Drat the bad luck!
JT - IN
Pre-Pay Penalty period. - Posted by scott_fl
Posted by scott_fl on August 26, 2001 at 17:35:54:
Is there a standard length of time on a pre-pay penalty. I have a owner trying to find this info out. I was just wondering if anyone has dealt with this before. 3 or 5 years?
Scott
Re: Pre-Pay Penalty period. - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on August 26, 2001 at 21:34:23:
Scott, sorry, no standard length on pre-pays. In the last several months of deals I’ve seen: 6 months, 1 year, 3 years, 5 years and a 10 !! year pre-pay!
It should be spelled out right in the homeowners’ note (if they saved that paperwork).
Best of success,
Joe Brillante
A neat trick for prepayment penalties - Posted by Anonomous
Posted by Anonomous on August 27, 2001 at 02:36:14:
Here’s a trick with prepayment penalties.
Since you are able to make extra principle payments without penalty, and if your mortgage does not limit the amount of extra principle payment, you can pay all but a dollar of the remaining mortgage, then go in the next day, pay the last dollar and the prepayment penalty on the dollar-usually expressed as a percentage.
Should check with an attorney first.
LOL