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#91
Lexus Fanatic
Originally Posted by LexsCTJill
Best explanation below:
Lenders charge prepayment penalties because it enables them to place the loan in a security and sell it; because another institution might buy that security, it will need assurance that the loan will be outstanding for a set period of time, which means the buyer will receive a certain yield from that security.
Lenders charge prepayment penalties because it enables them to place the loan in a security and sell it; because another institution might buy that security, it will need assurance that the loan will be outstanding for a set period of time, which means the buyer will receive a certain yield from that security.
FACT, 99% of loans have no prepayment penalties. It's only niche products, the sort of products that aren't sold as securities, that do nowadays.
I have sat at the settlement table of over 500 real estate settlements over the last 15 years, I have seen maybe 1 or 2 loans with a prepayment penalty.
#92
Lexus Champion
the problem isn't having $50K and borrowing $50K at 0%, the problem is not having the $50K and borrowing $50K at any rate above 0%.
#93
Lexus Champion
This is not true. A loan does not have to have a prepayment penalty to be sold on the secondary market.
FACT, 99% of loans have no prepayment penalties. It's only niche products, the sort of products that aren't sold as securities, that do nowadays.
I have sat at the settlement table of over 500 real estate settlements over the last 15 years, I have seen maybe 1 or 2 loans with a prepayment penalty.
FACT, 99% of loans have no prepayment penalties. It's only niche products, the sort of products that aren't sold as securities, that do nowadays.
I have sat at the settlement table of over 500 real estate settlements over the last 15 years, I have seen maybe 1 or 2 loans with a prepayment penalty.
most HELOC loans also have a similar clause.
#94
Lexus Fanatic
https://www.attn.com/stories/197/how...n-1978-vs-2014
#95
Lexus Fanatic
Originally Posted by mjeds
I'll agree with this, I have a current "product" that had a pre-pay penalty.. the terms of the loan were zero closing costs, the bank paid everything except the partial month interest and the property tax holding, all the doc fees, appraisal, etc. was picked up by the bank, the term was no refi or payoff for 36 months after escrow closed or I have to repay all those costs that they covered. I'm well past that mark now, but it was the banks way of guarantying they got their 36 months of interest.
most HELOC loans also have a similar clause.
most HELOC loans also have a similar clause.
#96
Lexus Fanatic
I'll agree with this, I have a current "product" that had a pre-pay penalty.. the terms of the loan were zero closing costs, the bank paid everything except the partial month interest and the property tax holding, all the doc fees, appraisal, etc. was picked up by the bank, the term was no refi or payoff for 36 months after escrow closed or I have to repay all those costs that they covered. I'm well past that mark now, but it was the banks way of guarantying they got their 36 months of interest.
most HELOC loans also have a similar clause.
most HELOC loans also have a similar clause.
#97
Lexus Fanatic
My aunt claims she refi'd with Jamie D. and there were absolutely no fees whatsoever, this is a 15 yr. mortgage, not a heloc. I told my wife I would have to see her paperwork to believe her, but I could be wrong. But just using common sense, let's say her title insurance were $6,700, the bank is going to eat that? Now with home equity products all bets are off, there are true no fee products, as title insurance isn't required. That's why some folks like me have no mortgage, but have a home equity product in the first position.
#98
Lexus Fanatic
What value house are we talking about here? $6,700 is a huge cost for title insurance.
#99
Lexus Fanatic
I arbitrarily punched 800k into the first online calculator I found, for PA, and that's what it came back with....however, she's in NJ. Then, I found some website Stewart who has all states, so I redid the 800k with PA, it said $4,100, but with NJ, only $2,900....
#100
Lexus Fanatic
Those costs are more realistic. Also bear in mind you have simultaneous rate discounts, and reissue rate discounts depending on how long ago you last bought title insurance.
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