Is there a penalty for paying off a FHA mortgage early?

+1 vote
asked Jun 5 in Real Estate - Renting by Velez (250 points)
Is there a penalty for paying off a FHA mortgage early?

1 Answer

0 votes
answered Jun 5 by Grahlu (15,960 points)
In most cases any subprime loans require the borrower of the loan to pay a prepayment penalty for paying off the loan or mortgage early.

However the FHA forbids the issuing of fees for prepaying and FHA loan but in some instances you may be required to pay a penalty on prepaying the FHA loan early.

You likely won't have to pay a prepayment penalty for paying off the FHA mortgage early but only the bank can give you an exact answer because it would depend on what is stated in your FHA mortgage contract.

7,870 questions

8,173 answers

25 comments

167,234 users

...