Where to indicate pre-payment penalty on 1003?

Financing, Hard Money Lenders, Private Money
1

I’m doing my first 1003 for a borrower. He has a pre-payment penalty on his existing loan. Where would I indicate this on the 1003 in Point?

2

I add the prepay penalty amount as a line item on the GFE, one of those blank sections on the bottom should suffice.

3
He has a pre-payment penalty on his existing loan

If you are talking about the loan that he is in currently you would not put it any where. It is added into the pay-off balance on page 2 in the Liabilities.

If this is the new loan that you are talking about then;

If you go to the Truth In Lending page there is a place towards the bottom that you check “may” have a PPP

and as was mentioned you could add it to the GFE, but, you are not required to.

I normally type in the type of program and if it has a PPP on the LOAN PROGRAM tab of the Borrower Information Page ( i.e. 30 yr fixed 3 yr PPP)
Make sure that the customer understands any abbreviations that you use. This will save a lot of problems later. :slight_smile: