But not, you will find one thing you need to watch out for. No matter if FHA money do not let for prepayment charges, you may be necessary to spend the money for full month’s interest in which you re-finance or repay your loan because FHA requires complete-month appeal payoffs.
This means that, for folks who re-finance your FHA financing into January 10th, you might have to pay desire towards the leftover 21 weeks, even when the financing try theoretically paid down.
It is kind of a good backdoor prepay penalty, and something that will apt to be modified (removed) in the future getting upcoming FHA borrowers. If you’re a recently available FHA loan holder, you may sell otherwise re-finance at the end of the newest times to quit so it most appeal costs.
Update: As expected, they got rid of the new collection of post-settlement desire. Continue reading »