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Will a lender amend a mortgage agreement from a 15 year to a 30 year and waive the prepayment penalty?
Wiki User
∙ 17y ago
Typically no. They will most likely be able to find a way to re-write the mortgage from a 15-yr to a 30-yr but it is unlikely that they will waive the prepayment penalty. Also, depending on how far into your 15-yr mortgage you are, they may NOT be able to refinance you do to predatory lending laws. If it is over 1 year, then it is not an issue, but if it is less than one year, they may either A: not be able to do it, or B: offer you discounted rates and fees to do it. You may consider just refi-ing with another company or doing some comparison shopping. rates are going up - Prime is at 8% now, so if you're gonna do it act fast!
Wiki User
∙ 17y ago
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Can you take out a home equity loan if you have a prepayment penalty if you sell your home before two years after you purchase it?
Yes, as long as there is equity to use. The lender that will do the home equity loan will have figured the prepayment penalty into the 1st mortgage balance just in case you do sell your home before 2 yrs. are up. The lender will ask for specific paperwork including your mortgage (promissory note) so they will know about the prepayment penalty.
Is there a way to lower mortgage payment?
One of the best ways to reduce mortgage payments is to do a mortgage refinance as long as the new mortgage interest rate is at least two to three percent lower than the current rate and there is sufficient equity in the house. It's also important to a make sure there is no prepayment penalty on the existing loan. A prepayment penalty is a fee charged by the lender if a mortgage loan is refinanced before the prepayment expires
How soon can you refinance a home loan?
If you have equity in your home you can refinance at anytime.... Make sure your current home loan does not have a prepayment penalty. Next you would need to consult a mortgage lender: http://www.fixed-mortgagerate.com/mortgage_loan
How can you get out of a reverse mortgage?
You can refinance out of a reverse mortgage at any time, there is no prepayment penalty. you can also sell whenever you want and move. Any equity remaining will be yours to keep. If there is negative equity in the home you can turn it over to the lender and will not face personal recourse against you or your assets provided the reverse mortgage is a HECM reverse mortgage insured by FHA- most are.
What can you do if a house is purchased with a fixed rate loan and the mortgage is reassigned to another lender and that lender changes the loan to an ARM?
First of all, you signed an agreement with a fixed rate, and just because it was sold does not mean they have the right to change the mortgage agreement. If you signed a new mortgage agreement stating the new agreement then you are liable for that, but you can call your mortgage company and tell them you have a copy of the agreement you signed and, that you didn't agree to an arm. To sum it up, unless you re-signed a mortgage agreement, they DO NOT have the right to change anything just because they have baught your mortgage from your original mortgagor. Please do not let them run you over. Good luck.
Can you take out a home equity loan if you have a prepayment penalty if you sell your home before two years after you purchase it?
Yes, as long as there is equity to use. The lender that will do the home equity loan will have figured the prepayment penalty into the 1st mortgage balance just in case you do sell your home before 2 yrs. are up. The lender will ask for specific paperwork including your mortgage (promissory note) so they will know about the prepayment penalty.
What does a prepayment penalty that is Not Applicable mean?
If you have prepayment penalty clause in your agreement with lender, then if you pay off the entire loan amount with in the maturity period of your loan. You have to pay some amount of money as penalty. If prepayment penalty is not applicable means, even though if you pay off the the loan amount with in the maturity period. You need not pay any penalty.
Is there a way to lower mortgage payment?
One of the best ways to reduce mortgage payments is to do a mortgage refinance as long as the new mortgage interest rate is at least two to three percent lower than the current rate and there is sufficient equity in the house. It's also important to a make sure there is no prepayment penalty on the existing loan. A prepayment penalty is a fee charged by the lender if a mortgage loan is refinanced before the prepayment expires
When refinancing should there be a document stating that a prepayment penalty will be charged and how much it will be?
yes, unless in your state or the state of the lender there is no prepayment penalty. It may not be included in the verbiage on the Note--to see if it is mentioned there. It may have different information than the page titled "Prepayment Penalty."
How soon can you refinance a home loan?
If you have equity in your home you can refinance at anytime.... Make sure your current home loan does not have a prepayment penalty. Next you would need to consult a mortgage lender: http://www.fixed-mortgagerate.com/mortgage_loan
How can you get out of a reverse mortgage?
You can refinance out of a reverse mortgage at any time, there is no prepayment penalty. you can also sell whenever you want and move. Any equity remaining will be yours to keep. If there is negative equity in the home you can turn it over to the lender and will not face personal recourse against you or your assets provided the reverse mortgage is a HECM reverse mortgage insured by FHA- most are.
What kinds of penalties apply when the home is sold or the loan is prepaid?
The easiest way to find out if you currently have a prepayment penalty is to dig out the paperwork you have from when you signed your final paperwork and look for your mortgage note. There usually will be wording in your note that outlines the prepayment penalty terms. Use a calculator like this one from the acalculator.com to see your savings.
What will happen if you tear a structure down with a mortgage?
You would still be responsible for paying off the mortgage. It is likely that you will have breached your mortgage agreement. The lender may be able to demand immediate payment in full. If you fail to pay, the lender can take possession of the property by foreclosure. The lender could sue you for any deficiency that exists after the property is sold.You would still be responsible for paying off the mortgage. It is likely that you will have breached your mortgage agreement. The lender may be able to demand immediate payment in full. If you fail to pay, the lender can take possession of the property by foreclosure. The lender could sue you for any deficiency that exists after the property is sold.You would still be responsible for paying off the mortgage. It is likely that you will have breached your mortgage agreement. The lender may be able to demand immediate payment in full. If you fail to pay, the lender can take possession of the property by foreclosure. The lender could sue you for any deficiency that exists after the property is sold.You would still be responsible for paying off the mortgage. It is likely that you will have breached your mortgage agreement. The lender may be able to demand immediate payment in full. If you fail to pay, the lender can take possession of the property by foreclosure. The lender could sue you for any deficiency that exists after the property is sold.
Do you need to have a separation agreement to refinance a mortgage in your name?
You can refinance the mortgage in your name if the property is on your name alone and the lender approves your loan.You can refinance the mortgage in your name if the property is on your name alone and the lender approves your loan.You can refinance the mortgage in your name if the property is on your name alone and the lender approves your loan.You can refinance the mortgage in your name if the property is on your name alone and the lender approves your loan.
What can you do if a house is purchased with a fixed rate loan and the mortgage is reassigned to another lender and that lender changes the loan to an ARM?
First of all, you signed an agreement with a fixed rate, and just because it was sold does not mean they have the right to change the mortgage agreement. If you signed a new mortgage agreement stating the new agreement then you are liable for that, but you can call your mortgage company and tell them you have a copy of the agreement you signed and, that you didn't agree to an arm. To sum it up, unless you re-signed a mortgage agreement, they DO NOT have the right to change anything just because they have baught your mortgage from your original mortgagor. Please do not let them run you over. Good luck.
How soon can you refinance after taking out a home mortgage?
Right away as long as the lender will ok it. Some want a year some want 6 months some do not care. Read your note to make sure you do not have a prepayment penalty. It can be high. 6 months interest on the full amount of your present loan.
If you make extra mortgage payments in a given year can you then write off the additional interest against that year's taxes?
No. The extra mortgage payments, over and above your normal monthly payment, are generally directly applied to Principal only. It is entirely allowable to make your January payment in late Dec.....and as tax essentially uses the cash basis, if this 13th payment is received by the Lender in year "X", you may get a 13th interest deduction on your 1099 Mortgage statement. While most mortgages allow prepayment without penalty, that prepayment is entirely principal, basically by definition.
