I need to sign for a loan I applied for ASAP. I financed $5850 over 60 months at 15.74%. It says I can pay the loan off early for a $100 penalty. Is it true that if I pay it off early, I will still owe $2688.60 in interest? I feel like I'm getting screwed.

if your penalty for prepayment is $100, then that is all you should be paying in the event you pay the loan early in full.

Why did you ask if it was true about that specific amount of interest being paid if the loan is paid off early? Did you see something in the paperwork that caused you to question the prepayment penalty?
I know that there are some mail loan offers that are going around with very fine print/easy to miss wording that, in essence, do make the interest still due in the event that the loan is paid off early...

I'm not getting the loan directly from the bank. I'm going through M-Lend Financial Services/Galt Enterprises. The man I'm working with at that company kept on saying that no matter when I pay off the loan I will pay the same amount of interest. I would pay just as much for a 3 year loan as I would a 5 year loan, so I may as well take the 5 year loan with lower payments. The "Fixed Rate Simple Interest Note/Disclosure" says..."PREPAYMENT: This note may be prepaid in part or in full on or before its maturity date with a prepayment penalty of $100 if you pay off your loan within the first 18 months from the date of this Agreement if the term of this Agreement exceeds 18 months." None of the other document wording seems to contradict this.

you should tell them to get lost...because thats a joke

I am using M-Lend because they were recommended by my doctor's office.

In that case you should get away from both...but seriously, any loan that requires you pay the interest in full, regardless of when it is payed off, is not in anybody's best interest. Ask to speak to the lender directly and you may find that this is not the case. If they were going to charge you the full amount of interest anyways, then there would be no need for a prepayment penalty. The prepayment penalty typically serves as incentive for you not to pay it off early.

I have found that a lot of people representing lenders do not know or understand what they are talking about. Your paperwork says you may prepay your loan at any time with a prepayment penalty of $100. You should ask to speak with a supervisor or someone that knows what they are talking about.

You don't have to use the lender suggested by your doctor. Have you checked with your bank?

Apparently, the lender is encouraging you to take a five year loan, even though you believe you can pay it off in three years. IF the interest rates on the two loans were identical, you could pay the five year loan off in three years by making the payment that would be required for a three year loan.
Generally, a longer payback period entails a higher interest rate. In that case, you would need to make a slightly higher payment to pay off in three years.
The longer term loan is more profitable for the lender. (The purpose of the prepayment penalty to protect at least some of that profit.)
Assuming that you qualify for the three year, and are comfortable that you can make the payments, you will pay the least interest by insisting on the three year loan. The five year would give you the option of making a lower payment if you found it necessary. You could still pay off the loan in three years at a slight additional cost.

It sounds like this lender either does not understand what he is talking about or is breaking usury laws. If you have to pay the interest in full no matter what, I belive that would make the interest prepaid as a finance charge. I'm sure that large of a finance charge would put a loan of that amount over the amount set by your states usury statutes. He might mean the interest rate will not change despite the length of time allowed to repay, but that would cause you to pay more if you took a five year loan when you can afford a three year, which would appear predatory as well. I would ask for more clarification from the lender and maybe his superior as well, and possibly seek an attorney to see if they are breaking any laws.