Cindy I also have never heard of a VA loan having an interest rate at 15% unless they got it in the 80's and never refinanced.

THANKS JAMES. I APPRECIATE IT.

Cindy here is a link to the VA site. It states that one of the benefits of a VA loan is the ability to pay it off early with no penalty. They may have to pay interest through the end of the month when they pay off the loan.
http://www.homeloans.va.gov/faqpreln.htm

their loan is thru midland mortgage, but it has been passed around a couple of times from other companies.
they live in it.
they said because it was a VA LOAN they have to pay all the interest.
thanks

good morning cindy.....i assume your friends live in the home...right?.anyway..i used to do quite a bit of non-conforming loans...at the time, many people could only be helped by this type of financing.........anyway, i suggest that your friends gather a copy of the following from their closing papers when they took out the mortgage.. a copy of the note- a copy of the t.i.l..- copy of the pre-payment rider, copies of all riders that were attached to the note.a.r.m..and a copy of the hud-1 closing statement...have them contact an attorney that is versed in r.e.s.p.a..see if any terms of the note violate section 32...which is a federal set of guidelines, or state specific guideliens that may have been violated....if their lender was a private lender, he/she may be expempt from these guidelines.if they were anything else....the co. that funded the closing could be in violation or even out of business......i hope that helps.bob mcclure- success mortgage partners- plymouth, michigan........

it has been more than 5 years and around 3000

Cindy my undersatanding is that if they have had the loan for more that 5 years or owe less than 75,000 there should be no prepayment penalty. You may have misunderstood or they may have been untruthful. here is a link to the Ohio code on mortgage loans and what is allowed. I am not an attorney and this is not legal advice but I have never heard of lender asking for the interest of the remainder of the life of the loan to be paid.

http://codes.ohio.gov/orc/1343.011