Comments on: How to avoid paying a penalty to switch mortgages

By: President’s Choice Mortgage is 1.85% – Wow! | Your Leverage.com | Doug Anderson

Tue, 30 Mar 2010 23:34:38 +0000

[...] Check out my post for how to avoid paying penalties to switch mortgages here. [...]

By: Doug Anderson

Doug Anderson — Thu, 19 Mar 2009 20:44:57 +0000

Mary,

Yes, feel free to put a link to this blog on your site.

Here’s a link: http://blog.yourleverage.com/general/anderson-wants-you-to-avoid-paying-a-penalty-to-switch-mortgages-heres-how/121

Cheers,
Doug

By: Mary Ferland

Mary Ferland — Wed, 18 Mar 2009 05:56:01 +0000

I REALLY liked your post and blog! It took me a little bit to find your site…but I book marked it. Would you mind if I but a link back to my site?

By: Doug Anderson

Doug Anderson — Fri, 30 Jan 2009 00:31:06 +0000

Most lenders will usually let you “pre-pay” a mortgage without any penalty. It can be anywhere between 15%-20%. So if you have a $200,000 mortgage, you should be able to easily prepay $30,000 or more without paying a penalty.

Of course, the condition of getting the second mortgage is that you have to have enough equity to do the shuffle. If the house is valued at $300k, with a $200k mortgage, you have up to $100k to work with (the difference). So say you get a second mortgage at lender B for $90k. Even if you were limited to prepaying $30k per year without a penalty, you could still pay down $90k over 3 years.

Hope that helps!

By: cc

cc — Sun, 25 Jan 2009 00:20:38 +0000

Do you have to pay a penalty on paying out quicker though?

By: Anderson wants you to avoid paying a penalty to switch mortgages … | bestpenalty.com

Mon, 12 Jan 2009 13:04:53 +0000

[...] Anderson wants you to avoid paying a penalty to switch mortgages … [...]