If the house was listed on MLS, can I refinance?
Normally conventional lenders don't have any issues in such a case, if the house has been off the Multiple Listing Service for at least 6 months. Anything less than 6 months requires some additional work and cost. You would have to write a letter of explanation on what made you change your mind. The interest rate will be higher by about .50%, or you can take a prepayment penalty. The penalty is 1 year hard prepayment penalty. The penalty amount will be quite high to discourage you from selling your house. The way it is calculated varies depending on the bank, but we often see this formula - 6 months worth of interest of 80% of the loan amount. For a $200,000 mortgage at 7.00%, the prepayment penalty amount will be $5,600.
Sat Oct 21, 2006 08:10PM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
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