Questions and Answers
Refinance on a consumer term loan, can we refinance the interest or just the principal?
State law determines what you are permitted to do. But Regulation Z says that if you are the original creditor and there is no "new money" being extended, you do not have to make a Truth-in-Lending disclosure. The outstanding principal plus earned but unpaid finance charge are both considered pre-existing debt rather than "new money."
(Posted: 08/21/2007)
