· Education · Sayasone Phongvichith
Prepayment: what is published and what is confirmed at quote
Plan to sell or refinance early? Here is what RED publishes about prepayment on each program, and why the final terms are confirmed when your scenario is quoted.
Can you pay a loan off early, and what does it cost? That decides how easy it is to sell or refinance. Here is what our program pages say.
Rental Loan and Rental Portfolio
Prepayment comes in 5-, 4-, 3- or 1-year structures, or none. What is available depends on the state and the deal. We confirm it when we quote your scenario.
Fix & Flip, Stabilized Bridge and Ground-Up
All three say "no minimum interest earned." A minimum interest requirement is a floor on the interest you owe if you pay the loan off early. These programs do not have one. Prepayment terms can still vary by state and deal, and we confirm them at quote. The Ground-Up page also says some states ban prepayment penalties and others cap them by loan size, term or property type.
Why it depends on the state
Prepayment rules are different in the states we lend in. So we confirm the terms for your property when we quote it. We do not publish one answer.
What to do
- Write your exit plan first. If you might sell or refinance in the first few years, ask about prepayment now.
- On a rental loan, compare the structures to how long you really expect to hold.
- At quote, ask for the prepayment terms in writing, along with the structure.
What to send us
The property address and state, the program, and your expected exit and timeline. Send it as a scenario. It is a preliminary inquiry only. Pricing is quoted per deal.
Program figures are indicative only and subject to complete documentation, underwriting, appraisal and final credit approval. This post is general information, not financial or legal advice.