How to avoid a prepayment penalty on a mortgage

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How to avoid a prepayment penalty on a mortgage

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Question:

I am about to refinance my house into an ARM. What do I need to do to avoid a prepay penalty?

Answer:

Very simple - tell your mortgage broker or whatever contact person you work with, that you do not want a pre-pay penalty. This will technically limit the number of lenders you will qualify for, however.

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