Mortgage Prepayment Penalties - Just Say No.

When you remortgage you are ending your old mortgage deal and making the switch to a newer one.

One of the most typical terms found in a new mortgage is a prepayment penalty.

you can plan on keeping the house for the whole duration of the prepayment penalty, and be enticed do not worry about it much. Naturally, you should generally ask ( prior to signing ) if a new loan has a prepayment penalty. Actually, ask the lending officer to identify to you in the document where a prepayment penalty is debated. If you have not signed loan papers yet, and you notice that your loan has a prepayment penalty, you could offer to pay a further closing point or so to work out if it can be removed. Discover more on Houston home mortgage. And naturally, try and get the new loan without a prepayment penalty.