In many cases lenders will protect their interests by attaching prepayment charges to the initial period of a mortgage. The charges are also known as "prepayment penalties." The state of California has maximum limits for prepayment penalties on loans secured by 1-4 unit residential property. Our loans are written to conform to the National and California laws.
Prepayment penalty terms are disclosed in the Note and the Mortgage Loan Disclosure statement. Prepayment penalties are negociable with the lender. In some situations a penalty can be waived by accepting a higher interest rate or paying extra points.