HELOC With No Prepayment Penalty
A home equity line of credit you can pay off early without a penalty fee. At least one HELOC program we offer has no prepayment penalty.
What to know about prepayment penalties
Each item below is true of at least one HELOC or other loan program we offer.
- At least one HELOC program has no prepayment penalty.
- At least one HELOC with no prepayment penalty is open to investment properties.
- No prepayment penalty on a primary residence or second home with at least one HELOC program.
- At least one HELOC with no prepayment penalty can be in first or second lien position.
- At least one loan for investment property charges a prepayment penalty on the amount prepaid.
- At least one loan for investment property lists states where prepayment penalties are not allowed.
No fee to pay off early
Primary homes protected
Rental lines included
First or second lien
Some rental loans differ
State rules can apply
What Is A Prepayment Penalty
A fee some loans charge when you pay off the balance early. At least one HELOC program we offer does not have one.
A prepayment penalty is a charge for prepaying part or all of a loan early. On at least one program that allows one, it is a percentage of the amount prepaid.
At least one HELOC program we offer has no prepayment penalty, whether the home is a primary residence, a second home, or an investment property. That line can be in first or second position. For a line drawn in full at closing, see our home equity loan options.
Where penalties do show up is on some rental property loans. At least one non-QM loan for investment property charges one, while at least one non-QM loan for primary residences and second homes does not permit one.
Why choose Saxton for a HELOC with no prepayment penalty
For homeowners who may pay the line down or off early and want to know the rules before they sign.
No Fee To Pay Off
At least one HELOC program we offer has no prepayment penalty, so paying the line off early does not trigger that fee.
Primary Homes Are Protected
At least one HELOC program has no prepayment penalty on a primary residence or a second home, and at least one non-QM loan for those homes does not permit one either.
Rental Lines Qualify Too
At least one HELOC with no prepayment penalty is open to investment properties with one to four units.
First Or Second Lien
At least one HELOC with no prepayment penalty can be in first or second lien position.
Some Rental Loans Differ
At least one non-QM loan for investment property carries a prepayment penalty. Ask us which kind you are looking at.
State Rules Can Apply
At least one loan for investment property lists states where prepayment penalties are not allowed at all.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about paying off a HELOC early.
Not on at least one HELOC program we offer. It has no prepayment penalty, so you can pay the line off early without that fee.
Yes. On programs with no prepayment penalty, paying the balance off early does not trigger a penalty fee.
Yes. At least one HELOC program with no prepayment penalty can be in first or second lien position.
Not on at least one HELOC program, which has no prepayment penalty on a primary residence, a second home, or an investment property.
Some do. At least one non-QM loan for investment property carries one, while at least one HELOC open to investment properties has none.
Yes. At least one loan for investment property lists states where prepayment penalties are not allowed.
On at least one program that allows one, it is a percentage of the amount prepaid, whether you pay off part or all of the balance.
Find out what you qualify for
Tell us how much you need and how you use the property, and we will show you HELOC options with no prepayment penalty.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.