Do You Have To Receive An Amortization Schedule From Lenders?

Answer 1

An amortization schedule is a document that lays out how much money you are expected to pay each month on a loan. It will tell you how much interest you are paying, how much of your payment is going toward the loan amount itself and what day each month that the loan is due.

Are You Required To Receive Such A Document?

In many instances, you are required by law to receive such a schedule. For example, students are expected to be given a schedule when they receive their student loans. This is one way that borrowers are protected from a predatory loan scheme. If no schedule is given, a borrower could take a lender to court for breaking the law. Most mortgage lenders will also give you an amortization schedule when you sign your mortgage.

You Have A Right To See A Breakdown Of Your Loan

Never sign for a loan unless you are able to see a breakdown of each payment that you are going to make. You never want to be on the hook for a large payment each month for the next 30 years because you were hoodwinked by a lender. It is just common sense that you know where every penny of every payment is going until the loan is repaid.

Check To Make Sure That Everything Is Accurate

Always make sure that all the terms of the loan are accurate. Check the interest rate that you are being charged, the amount of each payment and the date of the final payment to ensure that the loan you are getting is the loan that you agreed to if. If anything is amiss, you should alert the lender immediately to demand changes.

A loan is an obligation that you have to take seriously. If you do not repay your loan, you could be sued or have your wages garnished. Borrowers who are able to pay should be able to rely on their lenders to be honest and upfront about the loan that they have just taken out.