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Are there any penalties for paying off a VA loan early?

by bolobaby554 from , California. Sep 25th 2015 Reply


Jesse Stroup (jessestroup)
#196 ranked lender in California - 589 contributions

Most loans do not have a pre pay penalty. You should call the mortgage holder to get more information about this, as some lenders state in the fine print that you can't pay over a set percent of the loan per year.

Sep 25th 2015
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Justin Schuette (jschuette@tstarfunding.com)
#117 ranked lender in Colorado - 3 contributions

It is illegal to have pre-payment penalties on a VA loan as such there is no restriction in paying off the loan early. Hope that helps.

Sep 25th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,788 contributions

Absolutely not.. it's illegal to have a pre-payment penalty on VA loans.. however your lender might caution you to not pay it off for the first 6 months of origination.. But this is only because the lender get's most of their compensation from charging you a higher than par interest rate. if you pay it off early, they might have to pay back the monies they received for doing your loan. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 25th 2015
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Dan Paladin (dpaladin)
#2 ranked lender in California - 414 contributions

VA loans to not have a prepayment penalty so you can....

Sep 25th 2015
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Larry Gray (lgray_312_247)
#5 ranked lender in California - 1,127 contributions

From the mix of good answers from mortgage consultants thus far, one has to wonder whether you are talking about it being paid off early because you are going to refinance into a different loan for some reason, or are you talking about paying it completely off? Either way I think you can realize you should be fine. Congratulations, if you are actually able to pay the loan to 0!

Sep 25th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,439 contributions

Heck no! You can pay extra, sell, or simply pay off early with no penalties whatsoever.

Sep 26th 2015
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