Talk to lenders that ensure second mortgage loans with and with out pre-payment penalties. Some second mortgages may have a pre-payment penalty, depending upon in which state your home resides. Most home equity lenders require a 3 year pre-payment penalty with the typical second mortgage. (non-restrictive states only) Some Prime second mortgage programs allow you to buy out the pre-payment penalty.
Get a Second Mortgage with No Pre Payment Penalty
In most cases that translates to a .50 add to the interest rate. We recommend that if you plan on moving or refinancing in the next year or two, that you buyout the pre-payment penalty within the interest rate. In this case, you will pay a slightly higher interest rate and then have the freedom to refinance or pore-pay at anytime without penalties being charged.
Pre-Payment Penalty Considerations
• Fixed Rate Loan Consolidating
• No pre-pay Options
• Interest Only Loan Options
• Flexible Refinancing Freedom
• Consolidate all of your debts into one low monthly payment
• No PMI & No Mortgage Insurance
Ask your loan officer about the per-payment options and then analyze the pros and cons of the loan with a pre pay, and with out a pre-pay.
Numerous lending institutions typically impose application fees for loan requests. BD Nationwide will match you with banks and brokers that do not charge application fees, and there is no obligation to proceed with an equity loan through us. We provide complimentary loan quotes to assist you in evaluating interest rates and payment details. Our approachable loan team is dedicated to helping you discover the optimal second mortgage for your needs.