But not, you will find anything you need to watch out for. In the event FHA financing don’t allow having prepayment charges, you may be expected to afford the complete month’s need for you refinance or pay-off your loan while the FHA need full-day focus payoffs.

Put another way, for individuals who refinance your own FHA loan for the January 10th, you may have to pay notice to your kept 21 days, even when the financing are theoretically “paid down.”

It is brand of a backdoor prepay penalty, and one that may more likely modified (removed) soon to own upcoming FHA borrowers. Read more