Found a lump sum payment clause in my mortgage after 3 years

Was going through my paperwork last month and realized I had a 10% prepayment penalty if I sold within 5 years. Did anyone else miss something like that in their closing docs when they bought in Cleveland?

3 comments

3 Comments

drewgonzalez1d ago

Man who actually reads their closing docs all the way through anyway, right? I found a clause in mine that said I had to pay an extra 1% if I refinanced within the first two years, which I totally missed until I tried to refinance after 12 months. Idk, I think half the stuff in those papers is just there to make us feel like we're signing something important while we're actually just nodding along and hoping for the best.

robert_bell1d ago

Drew you're wrong, I read every page of my closing docs and found a typo on page 47.

martinez.kim1d ago

That thing about "half the stuff in those papers is just there to make us feel like we're signing something important" really hits home for me... I remember signing my mortgage and the notary was just pointing at lines going "sign here, initial here" so fast I couldn't even read what I was putting my name on. Then a buddy of mine found out his contract had a clause about mandatory flood insurance even though his house was on a hilltop, and he had to pay for it for three years before anyone caught the mistake. It's like they throw all this confusing language at us knowing we'll just be too overwhelmed to push back, especially when you're sitting there with a pen in your hand and a stack of papers that's thicker than a phone book...