Purchasers Right Of Prepayment, Interest
Hello,
First your time and expertise are appreciated. We are financing and although have no prepayment penalty our TILending states "You will not be entitled to a refund of part of the finace charge".
We want to know if we pay off the pricipal of our mortgage early. Will the interest considered the primary finance charge also be reduced?
Or will we still have to pay the total finance charges over the 30 year term?
wwwbeatthebankerdotcom is the guide for our plan. And we can't get a straight answer from our lender. It's amazing how they want soo much but offer so little. 
:-? Beat The Banker
If your loan is existing, already done, then any lawyer would tell you he/she needs to read the note agreement to see what it says.
I'd suggest that you read it in detail and maybe you can answer your own question by doing so...then, if you can't determine the answer, have a lawyer look at it for you.
A rule of contract law that might work for you here is this: Any ambiguity in a written K is held against the party who drafted it and in favor of the other guy.
Knowing that any institutional lender's note & D/T are going to be drafted by that lender, of course the ambiguous wording, if any, would be held against them and for you.
If your K is not yet done & finished, have your lawyer look at it before you sign.
John Merchant
[addsig]
Thanks much fro your reply. You are 100% correct. And we learned that this clause is regarding "pre-paid" finance charges of which we have none.
So, we can use the system effectively since the interest is obviously based onthe principal outstanding and by submitting the additional "principal only" payment each month build equity twice as fast and reduce interest fees.
Thank you again for your time and expertise.
Joel