Prepayment penalty scam … and we bailed out these ****ers?

[(former)FormerSanDiegan]

A prepayment penalty essentially prevents someone from refinancing during the penalty period. It’s not really a moot point for those whose loans were going to reset and who could have locked into a low fixed rate.

[Coronita]

[quote=AK][quote=flu]
with all due respect… If you think you might need to sell in that timeframe, you probably should reconsider about buying. And it’s very unlikely you will be refinancing to a lower rate within 3 years. [/quote]

That’s the thing about unexpected situations … you can’t plan for them, but you can prepare for them.[/quote]

While I agree, my point is hopefully you’re putting enough emergency funds off to the side. I’d say in this economy 1.5 years of payments. It’s cutting it close otherwise.

[Coronita]

[quote=AK][quote=flu]
with all due respect… If you think you might need to sell in that timeframe, you probably should reconsider about buying. And it’s very unlikely you will be refinancing to a lower rate within 3 years. [/quote]

That’s the thing about unexpected situations … you can’t plan for them, but you can prepare for them.[/quote]

While I agree, my point is hopefully you’re putting enough emergency funds off to the side. I’d say in this economy 1.5 years of payments. It’s cutting it close otherwise.

[Coronita]

[quote=AK][quote=flu]
with all due respect… If you think you might need to sell in that timeframe, you probably should reconsider about buying. And it’s very unlikely you will be refinancing to a lower rate within 3 years. [/quote]

That’s the thing about unexpected situations … you can’t plan for them, but you can prepare for them.[/quote]

While I agree, my point is hopefully you’re putting enough emergency funds off to the side. I’d say in this economy 1.5 years of payments. It’s cutting it close otherwise.

[Coronita]

[quote=AK][quote=flu]
with all due respect… If you think you might need to sell in that timeframe, you probably should reconsider about buying. And it’s very unlikely you will be refinancing to a lower rate within 3 years. [/quote]

That’s the thing about unexpected situations … you can’t plan for them, but you can prepare for them.[/quote]

While I agree, my point is hopefully you’re putting enough emergency funds off to the side. I’d say in this economy 1.5 years of payments. It’s cutting it close otherwise.

[Coronita]

[quote=AK][quote=flu]
with all due respect… If you think you might need to sell in that timeframe, you probably should reconsider about buying. And it’s very unlikely you will be refinancing to a lower rate within 3 years. [/quote]

That’s the thing about unexpected situations … you can’t plan for them, but you can prepare for them.[/quote]

While I agree, my point is hopefully you’re putting enough emergency funds off to the side. I’d say in this economy 1.5 years of payments. It’s cutting it close otherwise.

[Coronita]

[quote=FormerSanDiegan]A prepayment penalty essentially prevents someone from refinancing during the penalty period. It’s not really a moot point for those whose loans were going to reset and who could have locked into a low fixed rate.
[/quote]

That’s correct…But I was referring to this particular case in this particular point in time for getting new loans right now (which I assume the OP would be doing a fixed rate loan). That 3 year penalty (if it’s the bank that I think it is) I believe is something that they recently did, because if it’s the same bank as before, clearly this wasn’t one of the terms a few years back when people were getting ARMS. Those people, probably already already beyond 3 years even if that clause existed….Anyone who gets an ARM right now and who can’t otherwise purchase with a fixed rate right now is just asking for it imho

[Coronita]

[quote=FormerSanDiegan]A prepayment penalty essentially prevents someone from refinancing during the penalty period. It’s not really a moot point for those whose loans were going to reset and who could have locked into a low fixed rate.
[/quote]

That’s correct…But I was referring to this particular case in this particular point in time for getting new loans right now (which I assume the OP would be doing a fixed rate loan). That 3 year penalty (if it’s the bank that I think it is) I believe is something that they recently did, because if it’s the same bank as before, clearly this wasn’t one of the terms a few years back when people were getting ARMS. Those people, probably already already beyond 3 years even if that clause existed….Anyone who gets an ARM right now and who can’t otherwise purchase with a fixed rate right now is just asking for it imho

[Coronita]

[quote=FormerSanDiegan]A prepayment penalty essentially prevents someone from refinancing during the penalty period. It’s not really a moot point for those whose loans were going to reset and who could have locked into a low fixed rate.
[/quote]

That’s correct…But I was referring to this particular case in this particular point in time for getting new loans right now (which I assume the OP would be doing a fixed rate loan). That 3 year penalty (if it’s the bank that I think it is) I believe is something that they recently did, because if it’s the same bank as before, clearly this wasn’t one of the terms a few years back when people were getting ARMS. Those people, probably already already beyond 3 years even if that clause existed….Anyone who gets an ARM right now and who can’t otherwise purchase with a fixed rate right now is just asking for it imho

[Coronita]

[quote=FormerSanDiegan]A prepayment penalty essentially prevents someone from refinancing during the penalty period. It’s not really a moot point for those whose loans were going to reset and who could have locked into a low fixed rate.
[/quote]

That’s correct…But I was referring to this particular case in this particular point in time for getting new loans right now (which I assume the OP would be doing a fixed rate loan). That 3 year penalty (if it’s the bank that I think it is) I believe is something that they recently did, because if it’s the same bank as before, clearly this wasn’t one of the terms a few years back when people were getting ARMS. Those people, probably already already beyond 3 years even if that clause existed….Anyone who gets an ARM right now and who can’t otherwise purchase with a fixed rate right now is just asking for it imho

[Coronita]

[quote=FormerSanDiegan]A prepayment penalty essentially prevents someone from refinancing during the penalty period. It’s not really a moot point for those whose loans were going to reset and who could have locked into a low fixed rate.
[/quote]

That’s correct…But I was referring to this particular case in this particular point in time for getting new loans right now (which I assume the OP would be doing a fixed rate loan). That 3 year penalty (if it’s the bank that I think it is) I believe is something that they recently did, because if it’s the same bank as before, clearly this wasn’t one of the terms a few years back when people were getting ARMS. Those people, probably already already beyond 3 years even if that clause existed….Anyone who gets an ARM right now and who can’t otherwise purchase with a fixed rate right now is just asking for it imho

[sobmaz]

Call them and threaten to contact your Congressman or Senator if they don’t waive the prepayment penalty.

Then, if they don’t, follow through.

You may not get anywhere but believe it or not I have gotten action that way before.

[sobmaz]

Call them and threaten to contact your Congressman or Senator if they don’t waive the prepayment penalty.

Then, if they don’t, follow through.

You may not get anywhere but believe it or not I have gotten action that way before.

[sobmaz]

Call them and threaten to contact your Congressman or Senator if they don’t waive the prepayment penalty.

Then, if they don’t, follow through.

You may not get anywhere but believe it or not I have gotten action that way before.

[sobmaz]

Call them and threaten to contact your Congressman or Senator if they don’t waive the prepayment penalty.

Then, if they don’t, follow through.

You may not get anywhere but believe it or not I have gotten action that way before.

[Author]

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