Mortgage prepayment penalties can sting - 2005-03-13
Many homeowners who are rushing to refinance their mortgage as interest rates rise may find themselves facing some unexpected terms: Their lenders have set a trap for them if they decide to pay the loan off early.

Prepayment penalties -- requiring borrowers who close out a loan in the first few years to fork over some extra cash -- have long been common on the so-called subprime mortgages provided to borrowers with blemished credit records. But they are increasingly showing up on adjustable-rate mortgages, or ARMs.
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Escalating cost of materials drives up housing prices - 2005-03-13
The cost of materials used to construct new homes is rising dramatically, forcing builders to absorb some of the increases and consumers to recalculate how much of a house they can afford.

The more expensive materials haven't yet held back the rate of new home construction, which is driven by historically low mortgage interest rates that have more than offset the rising costs. But the continuing pressure of higher raw materials, combined with a forecast increase in the mortgage rate this year, could bring a slowdown, experts say.
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