Posted on: 25th Apr, 2013 01:47 am
Is it true that some lenders charge a fee when the loan is paid off earlier that the given date as mentioned on the mortgage docs?
Yes, in most cases, the lenders add a pre-payment penalty clause in the mortgage docs. If you pre-pay your loan, then you will be liable for paying penalty.
Welcome Candy,
You will have to check your mortgage docs in order to find out the time period within which the pre-payment penalty is applicable. Once that period gets over, you will be able to pay off the loan without any hassles.
You will have to check your mortgage docs in order to find out the time period within which the pre-payment penalty is applicable. Once that period gets over, you will be able to pay off the loan without any hassles.