A pre-payment penalty is a fee that establishes the terms in which a mortgage lender or a bank has with the borrower that puts re
strictions on the amount and time that the borrower can pay off that loan. It is originally used by lenders to ensure a certain amount of interest payments per month, for example, taking 80% of what those interest would have been. Therefore, prepayment penalties are usually at a disadvantage to borrowers who would like to pay off their loan quickly and save money by reducing the number of interest payments.Â As a borrower, it is beneficial to not have a contract that includes pre-payment penalties.
At Refresh Funding we execute fast loans with one-year terms. As a result, we can protect brokers and borrowers by having NO prepayment penalties. Thereby allowing the borrower to have the option to reduce the number of interest payments without a penalty.
If you need a fast loan, Refresh Funding can provide Florida-based loans for individuals seeking rehab loans for fix-and-flips. Refresh offers fix-and-flip rates starting at 9.99% for a 12-month term or rental loan rates starting at 7.99% for 36-month terms. We like to think of ourselves as your choice for Private Mortgage Funding & Lending. It is Refreshing to know that the bank is not your only solution.