Mortgage Redemption Penalties
This is important! Don’t forget to read the fine print whenever you borrow money! Because there are alot of important facts in there.
One of the important points that some people miss is what the redemption penalties are for their mortgage. This penalty applies to paying off the loan within a certain period of time. For example, you borrow in September and the following June interest rates drop 1.5%. Hooray! Time to refinance! But wait, check your loan documents. It is likely that under one year, and sometimes alot longer, you would have to pay a redemption penalty of up to 6 months worth of interest.