What it costs to leave a mortgage early
THE HOME GUIDE · 27
What it costs to leave a mortgage early
A mortgage can have a cost even after you decide to move on.
ABOUT 3 MINUTES TO READ
A QUICK LOOK · THREE THINGS TO KNOW
01 / START HERE
Check the loan you have
Some mortgages charge a fee when you pay them off before the end of the term.
02 / START HERE
Ask about your choices
You may be able to take a mortgage to the next home or make extra payments under certain rules.
03 / START HERE
Add fees before you move
A fee to end a loan can change how much cash you keep after selling.
If you sell before your mortgage term ends, the lender may charge a fee. The size of the fee depends on your mortgage. Guessing can lead to a surprise.
PART 01
Check the loan you have
Some mortgages charge a fee when you pay them off before the end of the term. The amount depends on the deal you signed.
PART 02
Ask about your choices
You may be able to take a mortgage to the next home or make extra payments under certain rules. Ask the lender what is allowed.
PART 03
Add fees before you move
A fee to end a loan can change how much cash you keep after selling. Get the amount in writing before you decide.
A SMALL STEP YOU CAN TAKE
One thing to check today
Ask your lender for the cost to end the loan on your likely sale date.
HOW TO USE THIS
If you are buying or selling
If you are buying
If you are moving, check the full cost of the old loan and the new one.
If you are selling
Ask for the loan payout and any fee before setting your next budget.
SAVE THIS LIST
Three questions worth asking
- What is my actual estimated prepayment charge?
- Can this mortgage be ported, and under what conditions?
- How does the charge affect net proceeds?
SOURCE AND FURTHER READING
Categories
Recent Posts
