Hello everyone:
So I was about to sign my loan acceptance agreement with SoFi until I came across the following statement regarding prepayments:
Prepayments (from SoFi)
"If you pay the loan off early, you will not have to pay a penalty. You will not be entitled to a refund of part of the finance charge"
My loan acceptance packet from SoFi shows my loan amount of $72,000, 5-year variable, 2.38% interest rate. The "total finance charge" is $4445. I'm assuming this is the amount of interest I will pay over the 5-year period. The thing is, I want to pay this thing off as early as possible. My goal is to pay off everything in the next 1.5 years. Does this mean that I will still have to pay the full finance charge of $4445 despite this? I don't understand the bolded statement above.
Any help would be appreciated.
So I was about to sign my loan acceptance agreement with SoFi until I came across the following statement regarding prepayments:
Prepayments (from SoFi)
"If you pay the loan off early, you will not have to pay a penalty. You will not be entitled to a refund of part of the finance charge"
My loan acceptance packet from SoFi shows my loan amount of $72,000, 5-year variable, 2.38% interest rate. The "total finance charge" is $4445. I'm assuming this is the amount of interest I will pay over the 5-year period. The thing is, I want to pay this thing off as early as possible. My goal is to pay off everything in the next 1.5 years. Does this mean that I will still have to pay the full finance charge of $4445 despite this? I don't understand the bolded statement above.
Any help would be appreciated.
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