Let me guess, you paid points and some origination fees that are seen as a part of the finance charges (interest). If you pay off the loan early you get no refund of those already paid fees. No big deal just legal CYA statement for the lender.

You don’t need to worry about this. Years and years ago a little old lady thought she would get some of the interest back from her mortgage since she paid it off early. So, now they have to put in this silly disclosure. All it means is that they won’t refund you interest from previous months…which is really kind of a “duh” statement.

Your finance charges may include the loan origination fee of a few hundred bucks. They are just telling you that you aren’t getting any of this money back if for some reason you pay off the loan or refinance it. It is VERY basic and VERY standard language. It is NOT saying that you have to keep paying interest or anything crazy like that.

It means, the annual interest that you pay for each month’s payment will not be refunded if you pay off early.

It looks confusing, but its a DUH question because of course you wouldn’t get back money you paid. Don’t let it confuse you. It simply means that you won’t get any early payment financing refunded.