DSCR Prepayment Penalty Calculator

DISCLAIMER - This calculator is for illustrative purposes only. Results received from this calculator are designed for comparative purposes only, and accuracy is not guaranteed. WCLoanPro.com does not guarantee the accuracy of any information available on this site, and is not responsible for any errors, omissions, or misrepresentations.

The above calculations for the 5-4-3-2-1 and 3-2-1 penalties does not factor in the new principal balance after a certain number of payments are made. It uses the full loan balance which means the actual penalty will be lower.

Standard Penalty: - If you prepay more than 20% of the loan balance before your prepayment term has expired you're obligated to pay 6 months of mortgage interest as an early payoff fee.

5-4-3-2-1- Penalty - If you prepay more than 20% of the loan balance before the end of year 1 you must pay 5% of the loan balance as an early payoff fee.
If you prepay more than 20% of the loan balance after 1 year and before 2 years you must pay 4% of the loan balance.
If you prepay more than 20% of the loan balance before the end of year 3 and after 2 years, you must pay 3% of the loan balance, etc.

3-2-1- Penalty - If you prepay more than 20% of the loan balance before the end of year 1 you must pay 3% of the loan balance as an early payoff fee.
If you prepay more than 20% of the loan balance after 1 year and before 2 years you must pay 2% of the loan balance.
If you prepay more than 20% of the loan balance before the end of year 3 and after 2 years, you must pay 1% of the loan balance
The 3-2-1 penalty structure is not offered very often on 1-4 unit properties.

Disclosure: Minimum loan amount is $200,000 for residential non-QM loans. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.