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i just refinanced my home and now want to buy a new home.my lender says there are no penalties but my broker says there will be

by kristinem2007599 from Manteca, California. Mar 24th 2016 Reply


Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 431 contributions

The lender who completed your refinance will take an early payoff penalty from their investor whom they sold the loan too. You will not incur any penalty.

Mar 24th 2016
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Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 225 contributions

No penalties to you the borrower, but whatever money the broker made on your previous loan he will have to pay back to the Investor. Did the broker know this at the time of refinancing your loan?

Mar 24th 2016
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Joseph Hendizadeh (josephh)
#343 ranked lender in California - 29 contributions

If you sell your existing home that you just refinanced, the broker who originated the loan will incur a early payoff penalty on any monies received as rebate from the investor ,who they brokered the loan through. However, you should not incur any penalties, if your loan does not have a prepayment penalty. Generally, conventional and conforming loans that are underwritten to fannie mae or freddie mac guidelines do not have prepayment penalties.

Mar 24th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Yes. and No. the broker got paid to do your loan by the lender.. if you pay off that loan before making 4-6 payments, he will have to pay back all the funds they collected for doing your loan. So no penalty to you, but a stiff one for the broker.. 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

Mar 24th 2016
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Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

All answers about the liability to the lender are true should you be using the same lender as did the loan for you. That would be the most fair thing on your part to dosince they would incur the losses if you quit paying the loan within 4 1/2 or 6 months. However, you still need to contact whoever your loan currently is with... and find out if there maybe a penalty to you for early payoff or even if retaining the home to rent out.

Mar 24th 2016
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