Plan that move
A West Jordan client called last month, and wanted a house sold FAST. The family had made an offer on a house being built, and were ready to move.
Sound Great ? Not so fast!! Imagine the surprise {and dissapointment} to find a $6500.00 prepayment penalty on the existing mortgage.
This situation isn't unique. Recently lenders have used a variety of financing methods to make sure that loans stayed on the books long enough to yield the lender/invester the required profits.
In this case it made sense for our client to delay the purchase about 7 months until the penalty goes away.
Not so fast, examine all your documents before you make your plan, or better yet, ask your local REALTOR for some help.