Will not be entitled to a refund of part of the finance charge

At the bottom of the TIL, the last piece of information of the form it reads:

- will not be entitled to a refund of part of the finance charge

what does it mean?

asked by Gabe in Renting & Real Estate | 6347 views | 07-28-2009 at 01:33 AM

you mean this:

[ ] may [ X ] will not be entitled to a refund of part of the finance charge.

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).

answered by Fido | 07-28-2009 at 01:36 AM

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