This is another version of the bait and switch.  You are supposed to read the disclosures but more often than not, you hear the disclosures from the loan officer or broker.

They tell you, “there is no prepayment penalty on your loan”…you end up with a prepay.

They tell you, “your interest rate is fixed”…you end up with an adjustable rate.

The initial and final papers look daunting but really most of it is just standard disclosing.  There are only a handful of places you need to make sure say the right thing.

But there definitely is a loophole here.  There is only one little place in the initial disclosures that states you are getting a prepayment penalty.  The Good Faith Estimate is just an estimate right?  So, they can change things from start to finish.

They can change whatever they want.  If they lied to get you in the door then yes, you will show up to the closing and look at loan terms you have never seen before.

And you won’t find out until the closing.  Are you willing to take that chance?

There is only one way to protect yourself.  Find the right mortgage provider from the start.  They will show you on the documents the answer to your question. Remember in real estate and mortgages, unless it is in writing….it does not exist.