Quote:
Originally Posted by albertGQ
ATB compounds their interest on a semi-annual basis. So they're telling me adding the interest ($4,541.43) with the payout penalty ($12,656.35), the total payout is $319,201. Does this seem right?
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The fact that it's compounded semi-annually shouldn't matter for a standard mortgage.
Every refinance I see calculates the payout as follows:
Balance due after last payment +
Per diem interest since last payment +
Prepayment penalty +
Discharge fee.
Unless your per diem interest adds to $4,541.43 (which would make no sense), you've either been quoted a wrong figure or have contractually agreed to a ridiculous additional penalty for paying out early over and above the standard 3 month interest (or IRD) penalty.