I am trying to pay off a 15 year home mortgage seven years early and was told that there was no prepayment fee or penalty. Now, I see on my monthly statement that just arrived that there's a $60 payoff loan fee. When I called Washington Mutual to ask about it, a Jason told me that this is state law, which requires the $60 be paid to the lender. I asked him if he could give me a citation, and he said he could not. I asked if this was a state tax, and he said it was not; it was a manditory direct payment from me to the lender, required by law. I doubted this. What's the real story?

-- cheryl clark (cheryl.clark@uniontrib.com), November 26, 2001

Answers

Cheryl,

It is pertinent to read the disclosures that where provided to you during your initial 15 year mortgage loan. The fee schedule for any pre-payment should be disclosed. If there is no disclosure of this fee, then it cannot be charged. There are many online resources regarding state laws. Take some time to research or consult an attorney.

Albert

-- Albert Moyer (amoyer@sprynet.com), November 27, 2001.