The best thinking on loans
Not only have you been offered a bad mortgage, but you have been told indirectly that you are qualified to get a much better interest rate. * Prepayment penalties. This is a charge for refinancing or paying off the mortgage early. Good mortgages rarely have any prepayment penalty, and when they do have a penalty, the term during which the penalty applies is short. However, bad mortgage lenders frequently dissuade you from refinancing with another lender by tacking on prepayment penalties that apply for three years or more after you sign for the mortgage.