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Johnny Lynnie
Johnny Lynnie asked in Business & FinanceCredit · 4 years ago

Prepayment Penalty calculation?

Update:

Thanks for reading my question. Let's get straight to it. I know there's some fees involve but don't know how to calculate.

$200,000 loan 30 years at 3.25% (about $1400/mo including principle, interest, tax and insurance)

14months later, $40,000 in principle remaining.

I am paying off soon but no idea about the penalty, thanks again.

Update 2:

I forgot the most important part, I am using the VA loan.

Update 3:

I paid roughly $10k a month to lower the interest, half way thru the I decided to payoff. then I read around and saw prepayment thing on their website. thanks for all the answers.

5 Answers

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  • Bostonian In MO
    Lv 7
    4 years ago
    Favorite Answer

    Any prepayment penalties are spelled out in the loan contract.

    VA loans never have prepayment penalties. They are prohibited on VA loans.

  • ?
    Lv 7
    4 years ago

    read your contract if prepayment penalties are indicated the rates will be defined

  • RICK
    Lv 7
    4 years ago

    No pre payment penalties on VA loans

  • Anonymous
    4 years ago

    Id say call whoever services the loan and ask them how it would work.

    Only $40k left on a $200k loan in 14 months ?

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  • Wayne Z
    Lv 7
    4 years ago

    Pre-payment penalties, if any, would listed as a separate clause in your mortgage contract.

    They are not part of the principal and interest calculation.

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