Are you a mortgage penalty Red Wretch?

Pay Out Penalties Explained, if you were paying out on Nov 17, 2014. Making the right lender choice for a possible need/want to sell of your home before the mortgage comes due could have a big difference in payouts. This example shows Prior Discount compared to Best Rate. There is over $4,000 penalty difference. If your mortgage contract remaining fixed rate term is less than five years, and allows for: 1. No "port", just pay the penalty; or, 2. Only a "port" rate of only the remaining balance to save a penalty (keep remaining term and remaining balance); or, 3. Only a "port and blend" (keep the remaining term and add more money at a different rate offered today, all at the remaining term) For questions 2 and 3, will you qualify for your new mortgage at the five year posted fixed rate term? That's because default insured mortgages with less than a five year fixed rate mortgage are stress tested at the five year fixed posted rate; and many lenders are using that policy for uninsured mortgages. Then you may be a mortgage penalty Red Wretch! The question is: how much of a mortgage penalty Red Wretch will you be? It depends on your mortgage INTEREST RATE DIFFERENTIAL calculation: Payout calculations today, based on different contract language: Let's say this was your case: Your rate 3.10% Remaining term 29 months Payout Balance $135,000.00 Penalty Based on Prior Discount is $6,361.88; based on Best Broker Rate is $1,990.13; and, a three month penalty is $1,046.25 (which would not apply, because the lenders charge "the greater of". "Simple Math Basis" for concept only. Accurate figures involve payment amount and frequency, plus future balance calculations. Ask me about your particular circumstance.