The Large Print Giveth, and the Find Print Taketh Away.
Emergency Preparedness – The Large Print Giveth, and the Fine Print Taketh Away.
Beware of prepayment penalties on fixed or adjustable-rate mortgages, and home-equity loans and lines of credit. They require borrowers to pay extra cash as a penalty for closing out loans within the first three years. These fine print contract features, pervasive in the late 70’s and early 80”s during double- didget interest rates, have crept back into lenders agendas to penalize borrowers who see the light and want to dump debt or refinance with companies more favorable to them. Since 80% of all mortgages are refinanced within the first 7 years, borrowers get an unwanted surprise because they didn’t read the entire loan contract at closing.
Be a smart borrower. Look for and cross out with magic marker these undesirable clauses in loans as a self-protection action. If lenders get upset, remember that you can always find another who will be willing to put the debt noose around your neck, but treat you more kindly with full fees disclosure.
Remember, it never pays to go into debt. You always want to know all of the charges.
For more information contact (your emergency preparedness specialist).
CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.