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Comment by stockresearcher

16 hours ago

Prepayment penalties are illegal for the vast majority of loans that consumers can get in the US, which makes it a no-brainer to refinance any time the payment saving exceeds the cost of writing a new loan.

The Trump admin has floated the idea of allowing prepayment penalties in home mortgages, BTW.

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stockresearcher

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dh2022  15 hours ago

Would you mind posting a link where Trump wanted to allow prepayment penalties? This sounds unbelievable.

Every home owner in the US would be against it (especially the ones who got their mortgages in the past two years at relatively high interest rates).

  • stockresearcher  15 hours ago

    Crap, I was wrong. Bill Ackman is trying to convince Bessent to do it. So while it may happen, it isn’t coming from inside the admin.

    One argument is that it could allow for lower rates, BTW. (This is true, it very well could).

    And also, if it happened it would be for newly issued mortgages. Existing mortgages have language in the contract that you couldn’t just unilaterally change