What is a Frozen Share Loan?
A Frozen Share Loan allows you to borrow money using your MITFCU Savings Account as collateral. Until you begin repayment, the amount you borrow cannot be accessed from your Savings Account (these funds are "frozen"). As you pay off your loan, the frozen funds decline by the amount of each repayment. Therefore, when the loan balance is paid in full, no funds will remain frozen. Click here for more information on Frozen Share Loans.
Is there a penalty for pre-paying my loan at MITFCU?
Most MITFCU loans do not have a pre-payment penalty.
The exception is Home Equity Loans and Lines of Credit. In this case, a reimbursement of fees applies if the loan or line of credit is closed within two years of its opening date and the Credit Union prepaid your closing costs.