"you will not be entitled to a refund of the finance charges"

[claddaghmom]

This was on the 1st copy of my mortgage.......


Of course I am left thinking about it all weekend as my loan officer works m-f. So I thought I would ask here:

1)Does this mean I am not entitled to the previously charged amount if I pay it off early?

2) Or does it mean I have to pay the total cost even if I pay it off early?

[1growingsprout]

IDK, is that just a random statement on the paperwork, usually mtg are several pages long and that stmt would be buried in a paragraph or chapter relating to a specific topic. With out seeing the actual papers or documents I cant say. But i would get clarification from the bank on Monday.

[MCsMom]

I second that - if you were to type out the entire paragraph with that section bolded we might be able to help you come up with questions to ask more specifically.

[cristeen]

That means you will not be getting a refund of anything you've already paid. It is in pretty much every single mortgage document I have ever seen (and I've seen lots of them).

If you had to pay all of it regardless of when you paid it off, that would be under a clause called prepayment penalty, and that would be spelled out in your Note. Only rarely does the Mortgage document (here it's a Deed of Trust) itself refer to a prepayment penalty, and it would spell out the terms of the penalty (like 5 years, 10 years, I don't think I've ever seen one longer than 10 years).

[claddaghmom]

Originally Posted by cristeen

That means you will not be getting a refund of anything you've already paid. It is in pretty much every single mortgage document I have ever seen (and I've seen lots of them).

If you had to pay all of it regardless of when you paid it off, that would be under a clause called prepayment penalty, and that would be spelled out in your Note. Only rarely does the Mortgage document (here it's a Deed of Trust) itself refer to a prepayment penalty, and it would spell out the terms of the penalty (like 5 years, 10 years, I don't think I've ever seen one longer than 10 years).

That is what I was thinking, as it is not noted anywhere else.

The statement is all by itself, as one sentence below my payment schedule.

But of course I will be calling my loan officer.