These charges add up to a percentage of your own kept mortgage whenever your sell otherwise refinance. Imagine if you will still owe $100,000 after you re-finance your residence, and also the prepayment penalty was 4%. You would pay cuatro% out of $100,000, otherwise $4,000.

Repaired number penalties

Talking about flat charge set by the financial. Perhaps you would shell out $500, no matter what when you pay off the loan or just how much of one’s financial are left when you re-finance. [Read more…]