Your Cutting-Edge house homes Resource

Home Buyers Boot Camp real estate listings buyers guides
Home Contact Us          
   

house homes
Navigation

Full House
Log Homes
House Homes
Guest House

 

 

Resources

What Will Constitute A Great Home Internet Business
By Chiew Liang Yap
Copyright @ Chiew Liang YapEven the best home Internet business won’t prove successful for you if you don’t have the personality to work from home. A home Internet business that Read more...

Click Here to Add to Favorites
 
Resources

Windows : How They Improve Your Homes
By Brijesh
Do you think your home needs a makeover? Well one of the easiest ways of giving your home a new look without too much expenditure is to get creative with the window treatment of your house. Read more...
Resources

Top Obstacles of Home Selling
By LaToya Irby
After listing a house several times and receiving little or no response from prospective buyers most people begin to wonder what the problem is. Some realtors will tell you that selling a home takes Read more...
Resources

The difference between home equity loan and home line of credit.
By Stefano Sandano
Once you have built up equity in your home, you have the privilege of applying for a home equity line of credit, which allows you to borrow the money you need. Most financial Read more...

home plate: (baseball) base consisting of a rubber slab where the batter stands; it must be touched by a base runner in order to score; "he ruled that the runner failed to touch home"
#DEFINITION_FIXED

#Welcome to Home Buyers Boot Camp real estate listings buyers guides - your comprehensive house homes resource.

Below, you'll find extensive information on leading house homes articles and products to help you on your way to success.

Prepayment Penalties Erode Your Worth, Home That Is!
By Joe Lane
When a buyer gets involved with buying a home, thoughts usually tend to center on staying in that for a lengthy period of time, building both a family and equity. However, as we all know, your life can change in an instant and you never know when the next great job offer or life change will be presented, prompting you to leave town and seek a new beginning. It is those opportunities that prepayment penalties prey on and you should be well aware of what you’re getting in to if they are a feature of your mortgage.

Prepayment penalties typically state that if you decide to pay off the balance of your mortgage within a period of time (generally a few years from the start of the mortgage), you agree to pay a sort of penalty that is usually derived as some percentage of the interest on your mortgage over a period of time. The penalties serve loan agencies well as they seek to get some profit out of your loan even though an owner has decided to end it early, but they do a disservice to the owner.

Naturally, you should be aware of all of the aspects of your loan, but the section discussing prepayment penalties is perhaps one area to pay special attention to. These penalties can cost as much as a handful of monthly payments, so they do represent a significant cost. Every loan is negotiable and it is up to you and your realtor to make prepayment penalties at the very least a topic of discussion.

Much of the time, eliminating

the prepayment penalty from your loan may be too difficult or the bank may ask for too much in return, so negotiating down the lengths and amounts involved could be a workable solution for both sides. Negotiating a smaller window of penalty or a smaller amount of penalty can at least make you feel that you’ve addressed the situation and if you negotiate down the window enough, can probably make you feel safe from having to pay a penalty.

If you are currently paying on a mortgage with a prepayment penalty and have a lot of that time window left to go, you may think about getting creative with how you deal with the penalty should you have to endure it. If you have a new with new financing set up, you can elect to roll that prepayment penalty cost into the amount of your new loan to possibly get interest benefits if rates have gone down.

You can also contact your lender or real estate agent if the window is close to expiring but not fully up to see if the cost can be waived and, if so, what the bank would want in return. Perhaps financing a new property through the same bank will entice them to waive the prepayment penalty in favor of getting your repeat business. You’ll never know until you ask or your realtor pursues the matter, so it is always best to at least give it a try.

As with every step of the buying and ownership process, having full information with leave you better equipped to make decisions in the future. There are hundreds of little items that must be at least thought about and the presence of a prepayment penalty in your mortgage is one such item. Ask the right questions and make some attempt to negotiate down the terms of the penalty if your lender insists on making prepayment penalties a part of the mortgage. You’ll be glad later if a life-changing opportunity comes along later and you are free to pursue it without enduring the added cost of mortgage prepayment penalties.
Published by Joe and Colleen Lane, Realtors®. The Lane Real Estate Team services Tri City Wa Real Estate, Kennewick Wa Real Estate, Pasco Wa Real Estate, Richland Wa Real Estate, and surrounding Southeastern Washington Communities. Here is more information: www.joelane.com/


We strive to provide only quality articles, so if there is a specific topic related to home that you would like us to cover, please contact us at any time.

And again, thank you to those contributing daily to our house homes website.

     
home Partners
 

Home   |   Services   |   Products   |   Portfolio   |   Sitemap   |   Contact Us   |   About Us

Privacy statement    Terms & Conditions    Contact

© 2006 Home Buyers Boot Camp real estate listings buyers guides. All rights reserved. Legal Information :: Privacy Policy house homes