We were given a Commitment Letter for a Mortgage in April. At which time we asked about the vague language regarding the prepayment penalty and the interest rate. We were told by the Bank that the prepayment penalty was 5 years and that the Bank didn%u2019t have time to prepare the remainder of the closing papers or send further details to us prior to closing on the Loan. At no time did the Bank explain the %u201Creal terms%u201D of the deal.
When we signed the loan documents, we only had a few minutes to do so because the Bank got them to escrow at the very last minute. If we did not sign right then and there, the loan/purchase would%u2019ve fallen through.
A few months ago we contacted the Bank about paying off the Loan, which we thought we could do based upon the Bank%u2019s advising us that the term of the Loan was 5 years. At that time our principal balance due was $521,177 and the Bank told us that in order to pay off the Loan we would have to pay an additional prepayment penalty of $146,000.00 because the term of the Loan is 20 years. This effectively gives us no ability to pay off the Loan. Additionally, the Bank also gave us vague language regarding the interest rate, which they arbitrarily made up at closing.
We have made every payment on time and despite that the Bank refuses to work with us or have a meaningful conversation. Despite several requests to discuss this with the Bank, they send us form letters stating the same thing over and over again. They have been completely unprofessional and unwilling to work with long time customers.
We feel that the Bank bated and switched us, knowing at closing that we were buying a property and at closing wouldn%u2019t have a choice but to sign whatever documentation they gave us.
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