Quote:
Originally Posted by Art Vandelay
Does anyone or has anyone ever agreed to pay your penalty for breaking your mortgage early if you switched to them?
I have 3 yrs left on my term and the penalty to break is $16K, just wondering if any company is willing to eat that for me to switch to them?
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Unfortunately not. Sometimes they will cover any admin fees for switching (usually about $250) of they will cover legal fees on a straight switch or transfer through a company called FNF.
But not the payout penalty. I personally think the payout penalties banks are allowed to charge are bordering on criminal. It is sucj a scam what they are able to get away with. $16,000 is steep no doubt but I have heard of payout penalties of over $30,000.
We could look at your situation though. If by switching to a mortgage at a rate of 3.69 or 3.79% you might save more than $16,000 in interest charges over the next 3 years and make it worth it.