In some cases, a prepayment penalty could apply if you pay off a large amount of your mortgage all at once. The majority of states allow prepayment penalties, however, there are some exceptions, notably Maine, Massachusetts, and Nevada.
Likewise, are prepayment penalties legal in California?
California law allows lenders to charge prepayment penalties, since the state legislature is preempted from enacting blanket prohibitions by the Code of Federal Regulations.
Consequently, does Capital One have a prepayment penalty?
Capital One does not charge any prepayment fees. You may pay off either a portion of your loan or the entire amount at any time without incurring any fees or penalties. … No, Capital One only refinances auto loans that you have with other lenders, not including Capital One or its subsidiaries.
Does Florida have a prepayment penalty on car loans?
The state of Florida requires title loan lenders to be licensed. … A lender cannot charge a penalty for paying all or part of a loan off early (known as a prepayment penalty). A lender cannot advertise themselves using phrases like “interest-free loans” or “no finance charges.”
Competitive rates: Wells Fargo auto loan rates are on par with other lenders we’ve seen, but it’s always a good idea to shop around so you get the best auto loan rate possible. … But it isn’t the only lender to consider if you need a bad credit auto loan. No origination fees or prepayment penalties.
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Another option would be to negotiate a rate discount if they will not remove the prepayment penalty. Even a small rate discount over the course of a loan could offset the one-time prepayment penalty you will make.
Yes, you can try negotiating it down, but the best way to avoid the fee altogether is to switch to a different loan or a different lender. Since not all lenders charge the same prepayment penalty, make sure to get quotes from different lenders to find the best loan for you.
You could also simply ask your lender or dealership if the loan includes a prepayment penalty, but be sure to verify their answer by looking over your contract yourself.
Paying off your car loan early: The Cons
Early repayment fees: Some car loan lenders charge hefty exit and early repayment penalties for borrowers that pay down their debt before their loan term is up. In some cases, these types of charges can cost hundreds of dollars.