When my mortgage was sold to a big bank I started getting charged a fee for "prepayment" (basically I'd do another payment against the principal once a year or when I had extra cash, which was a non-issue before the sale).
Refinanced with a local CU and stayed with them ever since.
> A lender cannot assess a prepayment penalty unless the penalty was included in the original terms of the loan.
> According to the Federal Register, Dodd-Frank Act provisions “generally prohibit prepayment penalties except for certain fixed-rate qualified mortgages where the penalties satisfy certain restrictions and the creditor has offered the consumer an alternative loan without such penalties.”
> For lenders that do charge these penalties, prepayment penalties cannot be imposed after the first three years of the loan term.
> When my mortgage was sold to a big bank I started getting charged a fee for "prepayment"
Are you sure? Whether a mortgage has prepayment penalties or not is one of the things that is specifically declared in every mortgage contract I've ever seen. They can't just change it after the fact.
Refinanced with a local CU and stayed with them ever since.