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|Subject: Re: HELOC Question||Date: 7/20/2006 11:44 PM|
|Author: aj485||Number: 232447 of 311542|
My wife and I are attempting to refinance our Home Equity Line of Credit. Since we have held our current HELOC for just over one year, according to our lender "if during the first 36 months of your loan you prepay your entire outstanding balance which results in a release of your mortgage or security interest in your co-op, you will pay an Early Closure Releae Fee equal to third party processing fees and any costs we incurred to open your account".
Our mortgage broker has told me that this is a common practice in the industry with regards to a HELOC. Has anyone else dealt with this issue? Thanks.
It is a fairly common clause on many mortgages, not just HELOCs. Some of them require you to pay 6 months or 1 years interest. Others, especially the no-cost refi's and HELOCs have clauses similar to yours that require payment of the costs if you don't hold the loan long enough for the bank to make up the costs.
However, it should have been clearly disclosed to you at the closing. Do you still have the closing papers that you can go back and look?
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