Sentences with phrase «prepayment penalty clauses»
• What do I need to know about prepayment penalty clauses?
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Prepayment Penalty Loans containing prepayment penalty clauses allow a lender to collect extra money from the home owner if the loan is prepaid above a certain percentage.
DO NOT sign a mortgage agreement that contains a prepayment penalty clause!
As another way to compensate for prepayment risk (which is a reinvestment risk), a prepayment penalty clause is often included in the loan contract.
Just make sure that your mortgage agreement doesn't contain a prepayment penalty clause.
Not exact matches
Prepayment clause provides a limit, restriction or a payment of penalty due to the lender if the borrower decides to prepay the loan.
Enact federal laws prohibiting yield - spread premiums to mortgage brokers, loan flipping, mandatory arbitration clauses, balloon loans, and steep prepayment penalties, and laws setting minimal underwriting standards, establishing uniform mortgage broker licensing requirements, and a national database of disciplinary actions.