prepayment penalty
Is there a prepayment penalty on an ARM - Adjustable Rate Mortgage in California?
Question
Is it normal for restructured mortgages to contain a prepayment penalty?
Wells Fargo has agreed to restructure my mortgage but with a prepayment penalty and does not state the terms of the prepayment penalty.
3 months ago - 1 answers
Best Answer
Chosen by Asker
They have to specify the prepayment penalty. Most mortgages do not have a penalty but if yours is being refinanced, at a loss to Wells, they probably want to get at least some of the money back. BTW, by loss, it could include reduced interest rate, principal etc.
by MadMan
3 months ago
Asker's Rating: 