Anyone know if pre-payment penalty can be waived?

[bk11533]

We're in 3rd year of a 5 year 80/20. Still have some time until interest rate will adjust. We're interested in a refi to get into 30 yr fixed now.

Anyone had any luck getting pre-payment penalty waived? What a crock that it even exists in the first place.

I keep reading about Loan Mods on here, is that different than a refi?

Problem I think we have is that we're able to pay our bill, which sounds crazy. No late payments at all, just worried about adjustable % down the road.

New to the board, but it looks like lots of good info out here from what I'm reading.

Thanks in advance.

[Dan Bailey]

bk,
Welcome to the forum!
Yes, a loan mod is a different monster than a re-fi. Due to credit problems, house values being less than the loan now, etc...a loan mod is for those of us who cannot qualify for a re-fi and are in a hardship situation.

[bk11533]

While we didn't take out an FHA loan in 2005, from what I understand, our 80 (6% int) / 20(%10 int) loan could very well have been sold to them...

Anyone have any ideas on how to determine if your C-Wide loan is eligible for this new program?

Also, has anyone had any luck with with loan mods while they were current? We've never missed/made late payment, still paying principal/interest since 2005, yet unable to to refi due to not enough equity.

Principal reduction would be great, but I'd be happy with just locking into to a low fixed rate on remaining balance before mortgage resets.

[Moe Bedard]

You can ask CW and see if they will let you know who the investor is........


An FHA loan is one loan and it begins as FHA and it stays as FHA...................that is what you specifically apply for when you purchase or refi.............

Fannie and Freddie back conventional loans............

If the 80% part of the loan is under 417K......it could be Fannie or Freddie........but their were other investors that also bought these type of loans.

[bk11533]

Are there any success stories of those who are current getting a loan mod?

At this point, we're willing to take on the cost of the prepayment penalty ($2800) just to get into a lower % rate. Not excited about the penalty, but it's no different that forking out extra $$ every month in interest. Plus we'd be getting a fixed rate.

We did contact our local C-Wide rep about a refi and we're told everything depends on the appraisal. With not having much confidence there, not interested in paying $300 for nothing.

Just curious if anyone has had any luck with getting loan mods even though they were current.

[Dan Bailey]

BK,
It seems you ar talking about two different things....loan modifiation and re-finance.

As to your question "Just curious if anyone has had any luck with getting loan mods even though they were current."?
Yes, there have been folks in harship but current that have obtained loan mods even though they were current.