Legal Question in Consumer Law in Florida

Re: pre payment penalty

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The assignment of the loan by the lender does not negate the prepayment penalty clause. Generally, the prepayment penalty lasts for a period of 0 - 3 years depending on the terms of your mortgage. You probably got lower interest rates as an inducement to enter into this kind of loan.

I would suggest that you consult a real estate attorney to review the terms of your mortgage to determine what options might be best for you. The attorney may be able to negotiate a new mortgage with the new lender without the penalty.

Scott R. Jay, Esq.