Repaying their financial very early because of the refinancing otherwise promoting your home will come having prepayment charges. Certain mortgage loans have prepayment punishment. Speak to your lender regarding the policy for the early payment for your existing home loan just before refinancing.
Mortgages possess 1 of 2 style of prepayment punishment, known as prepays. One another items punish you for folks who re-finance in advance of paying off the mortgage. Hard prepays penalize people both for selling and you may refinancing, whereas mellow prepayment penalties simply rates consumers a charge immediately following offering your house.