From: "Grover C. McCoury III"
Newsgroups: misc.invest.real-estate
Subject: Re: Newbie here - Mortgage question
Date: Thu, 24 Aug 2006 09:22:37 -0400
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This is a multi-part message in MIME format.
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You will be required to payoff the remaining loan balance plus interest. =
Assuming you made your last payment, you will be required to pay =
interest from the beginning of the month to the day you close. You may =
also have to pay a prepayment penalty to the lender.
Whenever you apply for a mortgage ask if the loan features a "prepayment =
penalty". Many loans require the borrower to make a minimum number of =
payments to the lender - if the borrower decides to sell or refinance =
the home before the minimum time period denoted in the loan documents =
the borrower will be required to pay a penalty to the lender. Prepayment =
penalties insure that the lender will get a minimum rate of return on =
their investment. There are two types of prepayment penalties as =
follows:
1) Requirement to pay a penalty if you sell *or* refinance before =
minimum period (commonly referred to as a "hard" prepayment penalty)
2) Requirement to pay a penalty if you refinance before minimum period =
(commonly referred to as a "soft" prepayment penalty)
Prepayment penalties can range from 6 months interest to a percentage of =
the remaining loan balance.
Yet another $.02 from a Real Estate Investor and Licensed Mortgage =
Broker @ http://www.GroverMcCoury.com
wrote in message =
news:1156368926.823368.259310@m79g2000cwm.googlegroups.com...
>=20
> Hello all, I have a very stupid question but I am very new to real
> estate, so forgive me.
>=20
>=20
> Lets say I get a 30 year mortgage for $100,000 and my monthly payment
> is $1,000
>=20
> Then lets say one month later I suddenly want to pay off the entire
> $100,000 mortgage at once. Which of the following amounts do I end up
> paying?
>=20
>=20
> A) $100,000 + closing costs + interest for 1 month
> or
> B) $100,000 + closing costs + interest for 30 years
> or
> C) Other?
>
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charset="iso-8859-1"
You will be required to payoff the remaining =
loan balance=20
plus interest. Assuming you made your last payment, you will be required =
to pay=20
interest from the beginning of the month to the day you close. You may =
also have=20
to pay a prepayment penalty to the lender.
Whenever you apply for a mortgage ask if the =
loan=20
features a "prepayment penalty". Many loans require the borrower to make =
a=20
minimum number of payments to the lender - if the borrower decides to =
sell or=20
refinance the home before the minimum time period denoted in the loan =
documents=20
the borrower will be required to pay a penalty to the lender. Prepayment =
penalties insure that the lender will get a minimum rate of return on =
their=20
investment. There are two types of prepayment penalties as =
follows:
1) Requirement to pay a penalty if you sell =
*or*=20
refinance before minimum period (commonly referred to as a "hard" =
prepayment=20
penalty)
2) Requirement to pay a penalty if you =
refinance before=20
minimum period (commonly referred to as a "soft" prepayment=20
penalty)
Prepayment penalties can range from 6 months =
interest to=20
a percentage of the remaining loan balance.
<l0200100@yahoo.com> =
wrote in message=20
news:1156368926.823368.259310@m79g2000cwm.googlegroups.com<=
/FONT>... >
> Hello =
all, I have a=20
very stupid question but I am very new to real
> estate, so =
forgive=20
me.
>
>
> Lets say I get a 30 year mortgage for =
$100,000 and=20
my monthly payment
> is $1,000
>
> Then lets say one =
month=20
later I suddenly want to pay off the entire
> $100,000 mortgage at =
once. Which of the following amounts do I end up
> =
paying?
>=20
>
> A) $100,000 + closing costs + interest for 1=20
month
> or
> B) $100,000 + closing costs + =
interest for=20
30 years
> or
> C) =
Other?
>
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