Pre-Payment Charges

Pre-Payment Charges

Warning sign: charges for having to pay the mortgage off very very early, costs for additional stuff like insurance coverage.

Loan providers earn money if they charge interest in your loan. Which means each celebration has contending objectives: your incentive is always to spend the loan off early to save cash and their motivation is always to discourage early spend off or refinancing and that means you pay just as much interest as you are able to.

A little cost for prepaying the mortgage is typical, however you should really be cautious about any lender whom demands a fee that is big.