Ask Terry Questions 10-Year Call Notice on 30-year refinance

10-Year Call Notice on 30-year refinance

By Terry Savage on May 10, 2014 | Housing / Real Estate

In December 2012, my application for a 30-year, 3.125% home loan at Lisle Savings Bank was accepted. My credit score from Transunion was 816. After completing all the paperwork, I was given a “10-Year Call Notice” to sign. Although I was told they had never used this before, I wonder if I made a big mistake, especially since I was 67 years old, retired, disabled and had a limited income.

Terry Says:  This is a very unusual provision.  It basically means that you have only a 10 year mortgage.  I haven’t read the document, but I assume that the bank has the right to “call” your mortgage after 10years — which it will do if rates rise and they are stuck with your old low-rate loan.  I’m just going to assume that this is legal — because they are a regulated bank.   But I think you might want to check with a real estate attorney about this provision.  Or send me an email: with your contact name (the officer of the bank that made the loan) and I will call to find out more about this.



a personal
finance question