Breaking a closed mortgage can be costly: Roseman
You can get a low mortgage rate by signing up for a five-year term. But you could be penalized for an early exit if your plans change.
Brian Hyytiainen bought a house and took out a five-year mortgage in 2011. Things have changed in his life, forcing him to put the house up for sale.
“I’m unable to continue to afford the house on my own,” he says. “I’d heard there would be a prepayment fee, but I had no idea the bank would take advantage of an already difficult situation and charge $13,000.”
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