The Devil is in the Details
So, we received our package from TD Bank that lists out a few details about the loan and one single page document (regarding an attorney) that we need to sign.
One of the pages in the packet, though, indicates that there *is* a pre-payment penalty.
Well, you know me, I’m not gonna take 15 years to pay this off. I’d say it’s a safe bet to be done in less than 10.
Anyway, to that end, what the packet fails to disclose is what, exactly, the pre-payment penalty is.
If we’re talking $500 or something, well, that’s a drop in the bucket. If we’re talking 10% or something, well, that’s a different story.
So we’ll need clarification on that.
I’m not sure, having never done this before, but maybe it’s a standard practice with second mortgages. I just don’t know.
And, yeah, nothing gets the “I’m gonna pre-pay this thing” juices flowing like having it clearly listed out in black and white that a low 5% interest rate still works out to paying $30k in interest.
Borrow $70k and pay back $100k?
Yeah, I don’t think so… I’m planning on paying maybe $10k in interest before this one is off the books.
In separate envelopes, my wife and I received copies of our credit scores. I don’t recall this being the case with other loans we’ve taken as I flat out asked what my score was when we bought the car a few months back — maybe it’s a new regulation/disclosure type of thing — but I kinda like it.
Anyway, my score came in at 823.
So, while I might feel, and often sound, like my finances are in complete disarray, the banks think otherwise…