Model prepayment penalties, BRRRR cash-out seasoning, AirDNA vs. Form 1007 STR haircuts, RTL bridge-to-DSCR takeout refinances, 5–25u commercial debt yield, and blanket release clauses.
A 5-4-3-2-1 step-down prepayment penalty charges 5% of the remaining loan balance in Year 1, 4% in Year 2, 3% in Year 3, 2% in Year 4, and 1% in Year 5 (0% after Month 60), whereas a 3-2-1 step-down eliminates prepayment fees completely after Month 36.
Compliance Note: Educational structural underwriting models only; zero interest rates, APRs, or points are quoted. Loan Daddy LLC (NMLS #2827624 · AZ CMB #CMB-2016143 · CA CFL #60DBO-218873 · (480) 485-1229) is a mortgage broker, not a lender.
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