Here's the original post: https://www.biggerpockets.com/forums/517/topics/1222034-pote...Thanks to @Michael Plaks for highlighting that the 12/31/2024 deadline and the enforcement and the penalties are back, as of 12/23/2024!...

Or maybe not as severe a penalty as I've heard so far? 

One thing I am curious of - typically many of the hard money lenders will charge a 1-3 year pre-payment penalty in these types of scenarios unless your client paid points to not have that pre-payment penalty.

As a result of being federally charged with these crimes, you may face monetary fines, penalties, prison time and other consequences of Equity Skimming.Equity Skimming and related penalties of sentencing are detailed in 12 United States Code USC Section 1715Z-19.

@Colleen A Levitt check if you have a prepay penalty and what the seasoning requirements would be for the new loan to recognize the new value.

The penalties are just too high. 

If you have a large mortgage, the penalty can be pricey (eg $50K). 

Understanding the interest rate, loan maturity date, and any prepayment penalties will help gauge urgency.3.

DSCR or Fannie/Freddie loans can go up to 75% on single family homes, multi family homes (2-4 unit) max at 70% if you stick with Fannie/Freddie.Other things to consider would be:Paying points for a lower rate vs higher rate with no pointsIf going DSCR - Prepayment penalty term (0-5 years)The lower the loan size ($200-250k and lower), you should consider paying up to 2 points and doing a 5 year prepayment penalty if going DSCR.

All things being equal, a simpler option would be to terminate the lease with a penalty of one month's rent, agreed to in writing.