 TITLE: Selling Your Home With a Second Mortgage CONTENT: Find Out if Your Mortgage or HELOC Is Subject to Prepayment Penalties\n---------------------------------------------------------------------\nWhile prepayment penalties are rare these days, some lenders do charge them. Prepayment penalties usually only apply to the first two to three years of a home loan, so this information is especially important if you want to sell your home soon after taking out a second mortgage. You'll want to factor these penalties into the total amount you still owe, as most penalties are a percentage of the outstanding loan amount—generally up to 2% of the total. Take a close look at your mortgage loan documents and talk to your lender if you still have questions. END