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Total Posts: 376
Published Date: February 21, 2018
Most people come to us every day with this type of question sometimes tens and hundreds of them. Is there a pre-payment penalty? No, absolutely not!
Since the penalty is based on the remaining title loan balance’s percentage, this means that you’ll have to pay interest on the loan.
In most cases, a contract of a loan states that you’ll have to pay a penalty for the pre-payment of your title loan.
In our case, you won’t be asked to pay any kind of penalty or you won’t be charged if you make a decision to pay off your loan earlier than the end of the loan term
Many people don’t seem to understand what a “prepayment penalty” is, much to their own detriment months or years after signing mortgage loan documents.
This is especially true because it is often poorly explained, or not brought up altogether.
Instead, it’s buried in the paperwork and glossed over by borrowers who are eager to close on their mortgages and move on.
Unfortunately, this can be a costly mistake if you happen to break the rules, whether you realize it or not.
A prepayment penalty, also known as a “prepay” in the industry, is an agreement between a borrower and a bank or mortgage lender that regulates what the borrower is allowed to pay off and when.
Most mortgage lenders allow borrowers to pay off up to 20 percent of the loan balance each year.
At this point, you might be wondering why would anyone pay more than 20 percent of their loan off in one year?
Well, thinking outside the box a bit, paying off a mortgage early can happen in a variety of different ways.
Some customers want to pay the loan off earlier and that is GREAT because interest still is being charged while you have the loan out but once you stop, the interest stops as well.
This is extremely helpful because you could literally save thousands of dollars.And this will be to your own benefit
At Car Title Loans California, payment is due within 30 days.
On a multi-installment title loan, payments are due monthly. You can make a payment on your title loan as often as you would like to, and Car Title Loans California encourages it.
This flexibility helps our customers to fit their repayment into their own unique budget.
Car Title Loans California will never charge you a prepayment penalty. You can pay off your loan at any time.
Click here to make a payment on your loan.
Our goal is to become your personal banker that you can go to when you are in need of some quick cash.
We offer the best services on car title loans, specials for returning customers, and monthly giveaways for our valued clients.