The drive for fat profits by many of the worlds large mortgage and loan companies has resulted in them including clauses in their loan agreements that leave borrowers facing hefty fees for the privilege of paying off their loans ahead of time.
Kawana, Australia (PRWEB) November 15, 2005 -- The drive for fat profits by many of the worlds large mortgage and loan companies has resulted in them including clauses in their loan agreements that leave borrowers facing hefty fees for the privilege of paying off their loans ahead of time.
Businesses or Home owners that take out loans or mortgages usually do so to cover some additional expenditure such as a holiday, new car a building extension or perhaps a temporary shortfall in funds.
Very often they go to their bank or Mortgage and Loan Company, fill out the forms and wait, sometimes nervously, for an approval.
But what happens when you get an upswing in your financial situation or your businesses cash flow improves dramatically? In order to save money you might just want to pay that new loan off ahead of time or make a big dent in it by paying in a lump sum.
Not so fast!
The fact is that many mortgages and loans carry not a discount for being good and paying off early but a penalty clause that can cost you thousands.
According to Karen Jones of All Options Mortgages, www.alloptions.com.au, there are options that you really should look at before you enter into a loan or mortgage agreement.
In her radio programme, Karen explains just what to watch for, how to avoid being caught by penalty fees for early repayments or lump sum loan reductions and the options that can save you a great deal of money.
The information is available from the home page of All Options, you don’t need to register, the information is given freely as a service to those wishing to learn more about Mortgages and Loans.
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