@Kristen NegrottiI have done this once before but charged 15% interest and 5 points and all interest was prepaid - basically what I am getting at is if someone does it, it is going to be very very expensive.

I guess the only good thing about a prepayment penalty is that is is considered prepaid interest on your 1099 statement which may help with tax deductions.

May also show debits for rent payments.4) We also ask for last year's W-2.

Was supposed to close today finally but learned that 1. the lender suddenly changed three days ago, and the closing costs including pre-paids are over 13k.

In review, I found that they have basically made zero dollars after paying out all expenses AND debit expenses. 

Get as much understanding and disclosure as possible on the closing fees and escrows that will show up on the settlement statement - including stuff like prepaid interest ("stub interest"), tand and insurance escrow holdbacks, etc - biggest pitfalls we've seen are people not 1000% clear and aware of these things then getting very negatively surprised at the day of signing 

If you do, use a prepaid card that you don't mind being attached to your account.

Here is the breakdown: origination charges, appraisal, title fees ($4.3K), taxes and other government fees ($4.7K), prepaids including insurance, interest, taxes ($2.9K), initial escrow payments ($1.8K), other including realtor admin fee and owner's title insurance ($500).3.

I’ve had tenants that stayed for 10 years, prepaid rent 12 months in advance, and were always upbeat, happy and understanding.  

Then the closing department reaches out to title to finalize the settlement statement with all the debits and credits and money owed into escrow and then you set up the date and time.Sounds like to me you were dealing with a Broker who had no confirmation from his lender and it sounds like he handled the process very sloppy and was not on top of things and then he's telling you you're closing such and such day while he pushes the lender.