Questions to Ask Before You Break Your Mortgage

Be careful before you decide to break that mortgage! Your original lender may have built in a penalty that could end up costing you dearly.

While some mortgage loans allow the homeowner to refinance or carry their loan to a new home – others force the homeowner to break the mortgage and pay the lender what is called an interest rate differential. In some cases, the better rate that a homeowner obtains from a new mortgage ends up being useless. This is because the penalty they end up having to pay is almost equal to if not higher than any of the savings they planned to make in the first place.

We often find that people become so emotionally invested in the purchase of their home that they do not read everything their contract stipulates. In other cases, people focus on one goal, which is to get the lowest possible interest rate that they end up pay little to no attention to other limiting terms of the contract.

To learn more about whether breaking a mortgage is right for you, please contact us and speak to one of our experts. For more information about mortgage products and our other services, give us a call: 1-888-955-9011.