Long story short I was an idiot and got into one of the subprime interest only home loans. So my interest only fixed rate expires the end of May.
Here is my possible 2 problems. We may have an opportunity to do a builders trade and move to a brand new home but I kknow the builder will want to
close sooner than later. That is where the prepayment penalty on my current loan comes in. From what we have discussed the the place that carries our
loan they will not let us out of it early. How can I get out of it early is my question. I know rules are rules but we will be within 60 days of it
expiring come on. Other problem is, is that the house may not appraise out. We can work around that but the fact of the matter is we are getting
exactly what we owe for it right now and the stupid mortgage company is saying we are stuck until the end of May. Please help. Again I was the idiot
for getting into this situation but Now I'm trying to get out.
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You mean it's against the rules to refinance your mortgage? I'm didn't know that was legal?
Otherwise find a mortgage that doesn't have a pre-payment penalty. Obviously you need to shop it. Find out what the penalty is- then re-fi for a
smaller hit. Likely to cost something but hopefully significantly less then the penalty.
PS: The types of mortgage companies that offer this kind of loan are often unscrupulous. Call another- more reputable- company and ask them what
they can do to help. Except a huge rate if they can get you out-then dump it ASAP.
Edit to add: I am not a professional mortgage guy and this is not legal advice, blah, blah, blah. It's just what I would do.
[edit on 10-3-2008 by Gatordone]
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