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Alison Hillm…, Other/Just Looking in San Francisco, CA

Is there a penalty for paying off a mortgage early? If so, why?

Asked by Alison Hillman, San Francisco, CA Mon Apr 8, 2013

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There is no penalty as long as the loan has "no prepayment penalty" which most FHA and conventional loans have now a days. These penalties are common on commercial and non-conforming loans since the bank wants to ensure that it makes a certain amount of interest off of the loan for it to me worth while for them.
2 votes Thank Flag Link Mon Apr 8, 2013
Hi Alison,

I was just going to say what my partner Mark said below. If there is "no prepayment penalty" found in FHA and Conventional loans, then you pay no penalty :-)
1 vote Thank Flag Link Mon Apr 8, 2013
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