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Old 05-20-2015, 07:33 PM
 
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Or is it better to not mention this to them?
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Old 05-20-2015, 07:37 PM
 
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I would be concerned with possible penalties.
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Old 05-20-2015, 07:53 PM
 
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Quote:
Originally Posted by EngGirl View Post
I would be concerned with possible penalties.
FHA home loans are forbidden by law to contain prepayment penalties
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Old 05-20-2015, 08:55 PM
 
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They don't like it because it kills their projected earnings. But most loans today don't have prepayment penalty
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Old 05-21-2015, 06:02 AM
 
Location: MID ATLANTIC
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Quote:
Originally Posted by Electrician4you View Post
But most loans today don't have prepayment penalty
To the consumer. Almost all have penalties to the originator.

You don't know with 100% certainty.....you may have a plan or a strong desire, so, do keep it to yourself. It cannot be considered while underwriting the loan and it does nothing to make you more of an attractive risk. It could, OTOH, cost the lender thousands in Early Payoff Penalties.

Continue as planned and without broadcasting it to anyone. Nothing illegal about it and 100% in your best interests to keep it to yourself.
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Old 05-21-2015, 06:39 AM
 
Location: NC
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It was my impression that the originator or the lender, not sure which, is looking for you to keep the mortgage for a minimum amount of time (1 year? 2 years?) or they don't want to bother with you because it costs them too much. Maybe someone can put some real mmbers to this for us.
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Old 05-21-2015, 07:23 AM
 
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VA home loan/FHA home loan, wells fargo

Moderator cut: URL removed

Not trying to solicit just giving a heads up on just one of many lender banks/credit unions.
Now with that said you can google XXX bank and XXX loan and read the terms within that.

Last edited by Marka; 05-23-2015 at 03:06 AM..
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Old 05-21-2015, 07:48 AM
 
Location: Somewhere in USA
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check and read your loan contract thoroughly. You can't just "not mention this to them?" because they own your house currently. if you wanted to pay off, you would also need to clarify with them the $ you put in extra is meant for principle and NOT for the next month's payment. If you have all the cash to pay off completely, you would need to consult with them of the total payoff $. Never do things without their knowledge. It is them that provides you the service, which means they have the right to know where the payments go.
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Old 05-21-2015, 08:20 AM
 
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Quote:
Originally Posted by SmartMoney View Post
To the consumer. Almost all have penalties to the originator.

You don't know with 100% certainty.....you may have a plan or a strong desire, so, do keep it to yourself. It cannot be considered while underwriting the loan and it does nothing to make you more of an attractive risk. It could, OTOH, cost the lender thousands in Early Payoff Penalties.

Continue as planned and without broadcasting it to anyone. Nothing illegal about it and 100% in your best interests to keep it to yourself.
Cool, thanks for the info.

also thanks to everyone else in this thread who answered the question.
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Old 05-21-2015, 08:27 AM
 
10,265 posts, read 6,491,094 times
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Quote:
Originally Posted by ameridreamNoT View Post
check and read your loan contract thoroughly. You can't just "not mention this to them?" because they own your house currently. if you wanted to pay off, you would also need to clarify with them the $ you put in extra is meant for principle and NOT for the next month's payment. If you have all the cash to pay off completely, you would need to consult with them of the total payoff $. Never do things without their knowledge. It is them that provides you the service, which means they have the right to know where the payments go.
I wouldn't pay it off right away, but I would try to make a few extra payments towards the principle a year.

I paid about $60K in rent in 7 years and want to find a small home for about $60k. I know I have the added expenses of mortgage insurance, taxes and home insurance, but I hope to pay it off in 10 years if I can find a roommate to help with the bills. If I do find a roommate, which I'm not so sure I really want, it would pay for most of the mortgage.
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