I am a homeowner in the USA. Interest rates have dropped recently and I am exploring the possibility of refinancing my home loa
My existing home loan stipulates that the lender cannot charge a prepayment penalty. What I interpret this to mean is that they cannot charge a fee if I pay off my loan early. Refinancing implies that I pay off my existing loan early and in full, and take a new loan.
As a part of the refinancing process, the loan servicer for my existing loan has added a "Payoff Calculation Fee" in the amount of $25 to my monthly amount due.
- Really? What part of running a simple computer calculation necessitates a $25 charge? In my line of work, if I could charge $25 every time I had to click a button to have a computer calculate something, I'd own my house outright by now.
- Can this fee be interpreted as a "prepayment penalty" in legal terms? It is a fee that is required in order to prepay the loan in full, so I don't see how it couldn't be.
- I did not agree to have my mortgage broker contact my existing loan servicer to acquire this information. This fee has been charged without me consenting to it. Do I have any recourse here?