In most cases tje lenders allow you a specific pre-payment amount. Paying early a mortgage is the same as breaking the mortgage and transfering to another lender. The only difference, you would pay an extra amount for getting the discharge documents. (You should register the discharge at the land registry office to make sure there are no liens and encumbrances on the property)

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READ YOUR MORTGAGE NOTE. Wells Fargo issued THOUSANDS of loans and, believe it or not, NOT every loan has the same terms. Some have this penalty, some do not. If you read that document you signed when you purchased your house, you would already know the answer.

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My wife and i are considering a 30 year mortgage, but we want to use both of our salaries to pay the house off in 10 years. my co-worker told me that if i did that i could get penalized. please advise. thanks.

yes you could be penalized but most likely not in your case. The banks objective is to make money on the money they are lending out. Banks use prepayment penalty to ensure that they get a certain amount of interest payments before the loan is payed off. In your closing statements there should be mention of prepayment penalty and the length of time. The longest term that I have ever heard for prepayment penalty is 5 years. If you do not have those documents on-hand, you can call your lender. They should be able to tell you if your loan has prepayment penalty and the length of time.

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Can you borrow your 401 k money to pay down your mortgage if you are planning to refinance your mortgage without being penalized? i know you can borrow from your 401 k if you are a first time buyer but i don't know about refinancing. any advice would be greatly appreciated.

Depending on the rules for your specific 401k plan, you might be able to make a withdrawal without penalty if you're facing foreclosure, or you genuinely don't have enough income to live on. But, the withdrawal would still be taxable, because it's money that hasn't been taxed before. So if you're already paying the tax, it might be worth it to you to go ahead and pay the 10% penalty too.

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I have a £10,000 mortgage that the government pays the interest, if i pay off the the mortgage will i be penalised in any way. i get dla & pension credit

if u pay it off in 1 go the benefits agency will start diggin,be careful if ur gonna apply 4 benefits an they find out u had all that money they will refuse u any benefit

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We applied for a loan today and my credit score is 719 will i be penalized for this? the bank said no fee's for 720 and above !!! 1 point and we will have to pay another 1000?

719 is borderline between good and very good credit. It is probably in the top 20% of credit scores. Just relax and see what they say. It may be possible to increase your score within 30 days but you have to be careful on how you do it. Decreasing the balance on one credit card, or paying off one account may do it (but don't close that account). It may be that you applied for credit recently or something is showing that you paid on in the last month or so and hasn't posted. I would go over it line by line with the bank, ask for an appointment to review it with them. Aloha/

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I have a fha loan at a 6.25% rate and i pay $1,825 a month on a loan for $235,000. and i got the loan about 3 months ago.

there isn't much you can do besides refinance. that isn't always the best unless you can drop two points to cover all the incidental costs with a refinance. 6.25% is actually pretty decent. my first home had a rate of 10% and not because of my credit. it was 1990 and rates were high then. if you are paying mortgage insurance, ask your mortgage company how long you have to keep it before they will remove it. if they see you make great payments (always on time), they can remove it and that will save some money.

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I just got a property tax bill although when i pay my mortgage every month, property tax payments are included. how will that get paid and when? i do not want to get penalize for not paying, when in fact i am paying it every month along with my mortgage. please advise. thanks!

I pay mine through my house payment but the county tax collector sends me a courtsey copy of the bill every year. I suspect yours does too.

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Does it mean if mortgage is paid in full you do not get penalised?

It would state it pretty clearly. Unless you obtained this mortgage prior to 1970 (should be paid off anyway) or so the odds of it being assumable are only about 5%. Some VA loans are assumable, but the assuming party still must qualify under VA guidelines.

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So every month i get my mortgage statement and last month there was a letter enclosed as well. the letter basically said that if i pay my mortgage too early, like before the first of the month, that they would charge me extra interest for the days that i paid early. the reasoning behind this i guess is because it lowers the balance that i pay interest on before they bill the next statement. my question is...can they really do that? it seems wrong to me. i send my check through the bank so i really can't control if it gets there on the 31st or the 1st. but i don't think i should be penalized for paying it a day early! if anyone knows what i am talking about or has had this happen to them i would really appreciate some informative answers. so about the pre payment thing... it also says there is no penalty for paying the principal early. i can pay it anytime i want but it is just the monthly payment that can not be sent early. which is why i am confused....

Well, unfortunately if you have a PPP (Pre Pay Penalty) they are totally correct. When you signed the whole paperwork on the day of your closing, they had to advised you that you have or not a PPP. If you do, they are correct on charging you. meaning, that is you pay sooner they will charge you. there is a form that you must have signed that it said the proration and percentage of the amount charged. this is legal, they usually charge you a PPP so they can lower the rate at the time you purchase your property. Good luck. PS: if you didnt sign a PPP form, then you have to call them and make sure they do not charge you anymore.