do I get my real estate check at closing

Can I Payoff My Home Loan Early without a Prepayment Penalty?

Usually, Yes. It is important to note whether the terms of your home loan include a prepayment penalty. Most lenders allow loan prepayment, but some loans may have prepayment penalties. Paying extra money each month or making an extra payment at the end of the year can accelerate the process of paying off the home loan early.

When you send extra money, be sure to indicate that the excess payment is to be applied to the principal and double check the next statement to make sure any extra payments were received and properly applied.

A prepayment penalty clause can create a penalty if the loan is paid early, be sure to ask your closing attorney prior to closing on any new property whether the terms of the loan if the property is financed, include a prepayment penalty clause.

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