Finance

Question: Til(truth in lending) -about refund of finance charges?

(Posted by: Johnpau2011 on 2009-06-29 17:14:28)

I am taking a loan of 175K and the TIL says the finance charges will be around 75K so my total payments would be 175+75K=250K. This is for a 15 yr fixed mortgage. Now the TIL says that& quot;you will NOT be entitiled to a refund of part of the finance charge& quot;. It says there NO penalty for prepayment. Now lets say I pay off the loan within 10 years(hoping), then based on the calucation it should cut down my finance charges from 75K isn& #039;t it ? Does the TIL mean that even if I pay my mortgage with 10 years instead of 15 years, I will be still paying them 75K as finance charges. Total 175K(loan) + 75K(finance charges)=250K ? Correct me if I misunderstood it

Posted by: Mindin my own biznes on 2009-06-29, 18:19:47

Basically what it is saying is that you will pay $75k and all finance charges until the day the loan is paid off in it 's entirety. Example: Today you buy it for 75k you pay monthly installments for 1 year and win the lottery and pay it off at the twelth month. You will have paid 75k plus any finance charges for the 12 months that were due and thats it.