893 - What Is A Prepayment Penalty & How To Avoid by Anthony Greer
BiggerPockets Daily
00:00
How to Reduce Your Mortgage Prepayment Penalties
The Dodd-Frank Act imposed limits on prepayment penalties to safeguard property owners from sticker shock. Lenders can only charge a mortgage prepayment penalty during the first three years of your loan's term. The most they can charge is 2% in the first two years and 1% in the third year. If you refinance or pay off half of your loan balance, that will significantly reduce how much interest you'll owe.
Play episode from 05:17
Transcript
