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lammcspicy · Jul 20, 2006, 01:20 PM

Guys

Hi by the way, new to the forum.
I have a question. We are currently with Wells Fargo and tied into the mortgage for 1 more year. With my wife being pregnant we need to move but WF want $5000 for us to break away early. IS there anyway of breaking this ? Are there any mortgage providers who would pay this penalty for me if I took out a mortgage with them ?

Jay_Jay · Jul 20, 2006, 02:38 PM

I know here is Europe your stuck until your deal come's to an end as you have entered into a legal contract with the company claiming that you will repay an early repayment charge if you wish to exit it.

As for companys paying the fee's ! Again here your stuck until your no longer tied to the companys deal.

RickJ · Jul 20, 2006, 02:44 PM

So just to confirm, you're saying the early payoff penalty is 5G? If it's in the contract, then you're stuck (in the US).

... but it can't hurt to ask: Call them up and tell them you'd like to move - and would be happy to stay with them if they'd waive the penalty for early payoff of the current loan.

Mortgages are a highly competitive business; I wouldn't be surprised to learn that they'd agree to it to keep your business.

You need to ask a loan officer this, though. I already know that a c/s rep at an 800 # will tell you no.

lammcspicy · Jul 20, 2006, 03:10 PM

Yeah the 5k is I think the interest we would have to pay for the rest of our tie in period. I tried the whole when we move we would like to use you guys but they still said we would have to pay it.:(

Jay_Jay · Jul 20, 2006, 03:31 PM

Its sad but it seems that your going to have to pay them the 5k if you want to break the deal and move home.

lammcspicy · Jul 20, 2006, 03:37 PM

I won't be able to find a new mortgage where they may pay a % towards that figure ?

Jay_Jay · Jul 20, 2006, 03:43 PM

Originally Posted by lammcspicy

i wont be able to find a new mortgage where they may pay a % towards that figure ?

I know in Europe you can't but not 100% about the rest of the world

RickJ · Jul 20, 2006, 04:02 PM

Originally Posted by lammcspicy

i wont be able to find a new mortgage where they may pay a % towards that figure ?

Good point/question. Shop for a new loan in advance, letting them know of the penalty. With the business being as competitive as it is, you might find someone willing to do a credit or interest rate reduction.

Granted, it's another longshot but as with most longshots, it certainly can't hurt to ask!

ScottGem · Jul 20, 2006, 04:22 PM

I sincerely doubt is any mortgage lender is going to cover any part of your penalty. You might find a mortgage broker who might cut their fee , but you would still be paying more for the loan overall.

I think you best chance is to either transfer the mortgage to a new buyer if possible. Your loan might have a better interest rate then they can get now. Or to rent the home, even at a wash, and then sell it after the tie in period. Or you could add the 5K to the selling price.

Fr_Chuck · Jul 20, 2006, 04:23 PM

If you are moving, are you going to buy another house, it is possible that if you get your new mortgage from the same company, they will deal on the amount.

aqua@home · Jul 20, 2006, 04:54 PM

Hi, I don't think there is anyway to get out of it without moving and taking a new mortgage with them. You might be able to borrow extra to cover these costs from the new lender. A mortgage broker would probably have the most options available for you, and answers to your questions.