Many Seller's are now getting hit with some large Mortgage Payout Penalties. It is now more important than ever that they very this information along with their Realtor what their penalties will be if they are not porting their mortgage to their new home. Unfortunately with mortgage interest rates continuing to fall, most penalties are now calculated on the interest rate differential / loss of interest.
This is because most mortgage early payout penalties are calculated on three months interest payment or the interest rate differential—whichever is the GREATEST!!
How to Calculate a Mortgage Interest Rate Differential Penalty
Methods of calculating penalties are as varied as the lenders' imaginations. As a Seller or a Realtor, always remember:…