Mortgage Penalty Primer:

Mortgage penalties are integral to lenders making serious cash.  When refinancing or trying to get a better rate it is important to know what the exit cost you will be charged.  These charges vary wildly from lender to lender so it’s best to use your specific lender’s guidelines.

This video does an awesome job at describing how penalties are calculated and shows the different calculations for banks vs monolines.  

Still confused? Call us any time and we would be happy to talk through the penalty process and look at any ways to mitigate penalties.