While lenders defend repayment penalties citing origination cost recovery necessity from broken loan profitability projections, an unpleasant snag - early borrowers and the wider economy:.
Mortgage loan rates and closing costs and fees vary based on many other factors, including your particular credit and financial circumstances, your earnings history, the loan-to-value requested, and the type of property that will secure your loan. But there are also potential disadvantages to paying off your loan early as well, such as a possible prepayment penalty or other issues. Never risk damaging your credit by missing any loan payments, nor should you pay one loan instead of another.
