Do Baton Rouge FHA Loans Have Prepayment Penalties?

January 23rd, 2008 by http://fhaappraiserbatonrouge.info

FHA Guidelines:Do FHA Loans Have Prepayment Penalties?

Source: FHA Loans Expert, Carl Pruitt

Many subprime loans for borrowers with past credit problems have substantial prepayment penalties.

FHA loans do not have prepayment penalties with one small exception. When you pay off an FHA loan through either selling or refinancing the property, you must pay interest through the end of the month in which you are paying off the mortgage. So if you are selling or refinancing to pay off an FHA mortgage, make sure your payoff reaches your lender as close to the end of the month as possible. Otherwise, you will be paying interest for the rest of the month after you have already paid off the mortgage.

Feel free to contact me through the contact form at the top of the page if you have any questions.

More mortgage broker education on FHA guidelines is available in “ABCs of FHA Lending“.

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!