4 May 2011
4 May 2011
Reducing the prepayment penalties
| Prepayment penalties may become quite a sad surprise for borrowers. That’s why they try to find the way how to reduce these penalties. One of the most common ways is making a lump-sum prepayment before discharging a mortgage. It helps to decrease the balance which affects your penalty sum. But here comes another problem: where should a typical borrower get the money to make this prepayment at once? |
The standard decision is to borrow it for a short period of time: either from relatives or from another lender using an unsecured line of credit program.
In addition to it, recently another kind of service appeared at the market. Now you can borrow money to make a pre-payment. And in return, the financial institution, that gives you this loan, takes a part of your penalty savings. It looks like in time this service may become even more popular.