Refinancing or purchasing a new house?

[tedski]

I refinanced my house this summer and had to pay some pre-payment penalties. I can get a refund if I refer a new customer to my old mortgage holder (World Savings) for refinancing or a new purchase.

So, if you are considering refinancing or buying a house and will use me as a reference for a loan with World, I will pay you $1000 when your loan closes. Please send me a PM if you are interested and I will provide the contact info.

Thanks.

Please note: I do not work for WS and I can only do this for one loan.

[Blueface]

Originally Posted by tedski

I refinanced my house this summer and had to pay some pre-payment penalties. I can get a refund if I refer a new customer to my old mortgage holder (World Savings) for refinancing or a new purchase.

So, if you are considering refinancing or buying a house and will use me as a reference for a loan with World, I will pay you $1000 when your loan closes. Please send me a PM if you are interested and I will provide the contact info.

Thanks.

Please note: I do not work for WS and I can only do this for one loan.

Wow, never heard of that.
I thought all mortgage loans were built with no prepayment penalties by law?
I know that in Home Equity loans they penalize you the closing costs if you close out the account early, usually 3 years.
Never heard of it on a regular loan. You will pay $1000? Man, they must have hit you for some serious penalties.
Are you sure you don't work for the bank?

[Simon Templar]

Originally Posted by Blueface

Wow, never heard of that.
I thought all mortgage loans were built with no prepayment penalties by law?
I know that in Home Equity loans they penalize you the closing costs if you close out the account early, usually 3 years.
Never heard of it on a regular loan. You will pay $1000? Man, they must have hit you for some serious penalties.
Are you sure you don't work for the bank?

The norm is 1% of the loan amount for whatever amount of time the lender stipulates.Depends on programs and pricing. Just another way they stick it to ya.

[Blueface]

Originally Posted by Simon Templar

The norm is 1% of the loan amount for whatever amount of time the lender stipulates.Depends on programs and pricing. Just another way they stick it to ya.

I have heard of percentages for points but never for prepayment. That just plain sucks! Who ever stays how long they plan? Things change quite a bit in a short time.
Something I always have asked anyhow at closings to make sure so I don't think I will ever be surprised by it. Prefer to pay a higher rate and not deal with that.
Interesting.

[drawfour]

Move to another state. Pre-payment penalties are against the law in Washington state. But we do have other issues. Like no smoking in ANY public building (not even in a B&M!!!) and it's a Class C felony to gamble online.

[tedski]

Well unfortunately they are legal here in Calif (and we also have no-smoking almost anywhere within state lines rules as well ). I also don't work for a bank ... at least not directly. Although it seems that I do because the majority of my paycheck seems to be going to the bank.

I did not think the pre-payment clause would be an issue when I agreed to it ... but live and learn I guess. I don't have this in my new mortgage and won't ever have one in the future.

But hopefully, with someone's assistance, I can get a refund and pass along a nice chunk of cigar money.

Thanks guys!