“8.75% and a 3% Pre-payment Penalty”

“8.75% and a 3% Pre-payment Penalty”



Good evening Joe,

I was advised to contact you by my buddy Greg XXXXXX. I’m looking to refinance a rental property I fixed up this summer in Willimantic. I found an offer for 8.75% for 30 years, with a 3% penalty for prepayment before 5 years. My credit score is 675 Transunion and 686 Equifax. I have been told I can find better terms, and that you may be able to point me in the right direction. I appreciate your time and consideration.

Thank you, Pedro



A few years ago, this mortgage market place was called sub-prime. Now it is called Non-QM. Basically, a fancier name for similar types of loans.


The truth is there is a need for these loans and there are many clients that can’t get regular conventional or government type loans.


The bottom line, there is a demand, but these loans are pricey. As they say it is the cost of doing business in this marketplace.




Subscribe to my blog via Email:


Enter your email address:

Delivered by FeedBurner


Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



Like me on facebookfollow me on twitterConnect with me on linkedin

Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 3 commentsJoe Petrowsky • October 12 2018 02:12PM


Good morning, Joe Petrowsky it's been years since we've seen 8.75% but the prepayment penalty is a second killer.... that's sad....

Posted by Barbara Todaro, Previously Affiliated with The Todaro Team (RE/MAX Executive Realty - Retired ) about 2 years ago

Good morning Joe. A hard money loan at its meanest withthat onerous prepayment penalty. Enjoy your day 

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 2 years ago

I remember the 80's when interest rates were in the double digits. Sub-prime is sub-prime no matter what the name is.  I agree that there is a market, but as long as there are tight controls on the bundling of these loans with very transparent accountability that is what really matters. 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Realty) about 2 years ago