Prepayment Penalties and How they Can Impact a Refinance.
Refinancing your mortgage offers many benefits including the possibility of lowering your interest rate, reducing your monthly payments, or changing the term of your loan. However, before you begin the refinancing process, it’s important to consider the potential impact of prepayment penalties on your current mortgage.
Prepayment penalties are fees charged by some lenders when you pay off your loan early. Determining whether your current mortgage has a prepayment penalty and how it’s calculated is key to determining the value of a home refinance.
These penalties can sometimes offset the financial benefits of refinancing by adding a substantial cost to the process.
If you’re considering refinancing your mortgage and are concerned about prepayment penalties, NIHFCU’s home loan specialists are here to help. We can assist you in reviewing your current mortgage terms, calculating the impact of any penalties, and exploring your refinancing options.
Rates, fees and terms as of April 28, 2024 and subject to change without notice
