Saxon Mortgage Services
Pre-payment penalty ripoff

My mortgage was purchased by Saxon years ago. Prior to Saxon purchasing the loan I had gone through a divorce and when I refinanced to get the house put in my name only, I was penalized as a single mother and was given a very high interest rate.

After making on-time payments for a couple of years, I inquired about a rate reduction. Saxon said they would do an internal refinance to lower my interest rate. My current loan had a pre-payment penalty clause and they charged me that penalty even though I was refinancing internally! They also said to get the lower rate, I had to accept a pre-payment penalty clause on the new loan as well.

They still only lowered my rate to 9% (from 11). I want to refinance again to take advantage of the lower rates before it's too late but I have 18 months left in my 5 year penalty period. A loan officer from another company that would like to refinance for me stated that he believes pre-payment penalties are illegal in Maryland. I have paid this company thousands of dollars more than I should have already and don't want to pay them again, but really want to get a better rate.

Can anyone provide information about the legality of this pre-payment penalty and also if I can do anything about the charges I already paid in addition to how I can get it waived to get out now? I had to work very hard to keep the house on my own with 3 kids. The thought of them ripping me off like that when I did the internal refinance makes me sick. Someone help!!

Company: Saxon Mortgage Services
Country: USA
State: Texas
City: Fort Worth
Address: 4708 Mercantile Drive North
Phone: 8005948422

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