Home › Forums › Closed Forums › Buying and Selling RE › Prepayment penalty scam … and we bailed out these ****ers?
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AK.
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June 6, 2009 at 7:22 PM #15834June 6, 2009 at 10:40 PM #411594
CoronitaParticipantIn practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?
June 6, 2009 at 10:40 PM #412146CoronitaParticipantIn practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?
June 6, 2009 at 10:40 PM #412297CoronitaParticipantIn practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?
June 6, 2009 at 10:40 PM #411832CoronitaParticipantIn practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?
June 6, 2009 at 10:40 PM #412080CoronitaParticipantIn practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?
June 7, 2009 at 8:06 AM #412234UCGal
Participant[quote=flu]In practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?[/quote]
Perhaps the borrower wants to have the option to refi again if rates drop significantly. (Not likely since rates are relatively low – but it’s good to keep options open.)
Or perhaps the borrower is expecting an inheritance – not yet in hand.
Lots of reasons why one might pay off a chunk in the first couple of years – but not have the cash to do it right now.
June 7, 2009 at 8:06 AM #412301Participant[quote=flu]In practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?[/quote]
Perhaps the borrower wants to have the option to refi again if rates drop significantly. (Not likely since rates are relatively low – but it’s good to keep options open.)
Or perhaps the borrower is expecting an inheritance – not yet in hand.
Lots of reasons why one might pay off a chunk in the first couple of years – but not have the cash to do it right now.
June 7, 2009 at 8:06 AM #411989Participant[quote=flu]In practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?[/quote]
Perhaps the borrower wants to have the option to refi again if rates drop significantly. (Not likely since rates are relatively low – but it’s good to keep options open.)
Or perhaps the borrower is expecting an inheritance – not yet in hand.
Lots of reasons why one might pay off a chunk in the first couple of years – but not have the cash to do it right now.
June 7, 2009 at 8:06 AM #412453Participant[quote=flu]In practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?[/quote]
Perhaps the borrower wants to have the option to refi again if rates drop significantly. (Not likely since rates are relatively low – but it’s good to keep options open.)
Or perhaps the borrower is expecting an inheritance – not yet in hand.
Lots of reasons why one might pay off a chunk in the first couple of years – but not have the cash to do it right now.
June 7, 2009 at 8:06 AM #411752Participant[quote=flu]In practice, do you really plan on paying off more than 20% of the loan amount in the first 3 years? If so why not just put that amount down and lower your total loan amount off the bat?[/quote]
Perhaps the borrower wants to have the option to refi again if rates drop significantly. (Not likely since rates are relatively low – but it’s good to keep options open.)
Or perhaps the borrower is expecting an inheritance – not yet in hand.
Lots of reasons why one might pay off a chunk in the first couple of years – but not have the cash to do it right now.
June 7, 2009 at 9:28 AM #412033AK
ParticipantYeah, I might need to refinance, as unlikely as that might seem. Or I might need to sell. Ya never know.
Plus it’s a matter of principle. “No prepayment penalty” should mean “no prepayment penalty” and not “Oh gosh, you wanted to prepay that much? Well that’s different!”
June 7, 2009 at 9:28 AM #412497ParticipantYeah, I might need to refinance, as unlikely as that might seem. Or I might need to sell. Ya never know.
Plus it’s a matter of principle. “No prepayment penalty” should mean “no prepayment penalty” and not “Oh gosh, you wanted to prepay that much? Well that’s different!”
June 7, 2009 at 9:28 AM #412346ParticipantYeah, I might need to refinance, as unlikely as that might seem. Or I might need to sell. Ya never know.
Plus it’s a matter of principle. “No prepayment penalty” should mean “no prepayment penalty” and not “Oh gosh, you wanted to prepay that much? Well that’s different!”
June 7, 2009 at 9:28 AM #411797ParticipantYeah, I might need to refinance, as unlikely as that might seem. Or I might need to sell. Ya never know.
Plus it’s a matter of principle. “No prepayment penalty” should mean “no prepayment penalty” and not “Oh gosh, you wanted to prepay that much? Well that’s different!”
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