Prepayment Penalty - No Rider

[haddy1999]

What is the name of your state? Nevada
I'm in the process of refinancing my home after the waiting out the 2 year pre-payment period. I received the payoff from the existing lender and noticed almost $15000 in prepayment penalties. I contacted the lender and according to them I have a 3 year PPP. My loan (and application) both state 2/28. My broker has told me it was "absolutely" a 2/28 with a 2 year PPP. I reviewed my note and in paragraph 5, BORROWERS RIGHT TO PRE-PAYMENT there is a 3 not a 2. There is no prepayment rider (The only Rider is for the ARM) and the lender tells me their is no need for a PP Rider. Am I up the creek without a paddle or can I go after the Title Company since this clearly is either a typo OR misrepresentation.

BTW, the page that displays paragraph 5 only has initials at the bottom, no signatures.

 

[Shay-Pari'e]

What is the name of your state? Nevada
I'm in the process of refinancing my home after the waiting out the 2 year pre-payment period. I received the payoff from the existing lender and noticed almost $15000 in prepayment penalties. I contacted the lender and according to them I have a 3 year PPP. My loan (and application) both state 2/28. My broker has told me it was "absolutely" a 2/28 with a 2 year PPP. I reviewed my note and in paragraph 5, BORROWERS RIGHT TO PRE-PAYMENT there is a 3 not a 2. There is no prepayment rider (The only Rider is for the ARM) and the lender tells me their is no need for a PP Rider. Am I up the creek without a paddle or can I go after the Title Company since this clearly is either a typo OR misrepresentation.

BTW, the page that displays paragraph 5 only has initials at the bottom, no signatures.

How is it a "TYPO?".

 

[haddy1999]

I'm assuming it's a typo since it's "3" not "Three" and the ARM Rider clearly indicates a rate change after the 2nd year fixed period. Which again demonstrates a 2/28 not a 3/27. I would think a 2/28 with a 3 year PPP somewhat defeats the purpose of a 2/28. But still there's no Pre Payment Rider which I believe would resolve this issue.