Here’s the question…

“I was told by my real estate agent that 30 year loans don’t…no actually…can’t have prepayment penalties. Is that true?”

In a word, “No”.

The terms of mortgages are not set this way.

For example, the old subprime and Alt-A loans, many had 30 year fixed rate terms and still included a prepayment penalty.

I believe what your real estate agent was referring too is the prime mortgage market - Fannie Mae, Fredddi Mac, FHA and VA, loan typically do not have prepayment penalties included in their 30 year fixed rate loans.

Blanket statements about mortgage terms are very dangerous.

Read the disclosures fully and never assume you know the terms until you’ve read them.

Good question…btw!

Good Luck!

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