A look into mortgage prepayment penalty – as a MBS investor

Paying penalty to break a mortgage term is not a pleasant experience. You have probably experienced the pinch once or twice during your homeownership. It is interesting to see how the penalties decide pool types on mortgage backed securities. The NHA mortgage backed securities guide speaks a

Read more

Interest Rate Outlook – Getting Seriously Positive – Bringing Three Months Interest Penalty To Break A Fixed Mortgage

More and more lenders are offering very attractive prepayment options for fixed mortgages. Some offers only three months interest and some offers the same thing but after three years. If a borrower wants to prepay a fixed rate mortgage then the prepayment penalty will be much less

Read more

Mortgage Prepayment-Penalty – New Code of Conduct for the banks.

Today, Ted Menzies, Minister of State (Finance) announced several measures to protect Canadian consumers. The most interesting among those is the new mortgage pre-payment penalty guideline. According the ministry announcement; It requires (the new code of conduct or guideline) that federal financial institutions explain the differences between

Read more

Pain of Pre-Payment Penalty

When the lenders express concerns about the debt to income ratio of Canadian’s then it perfectly makes sense. Being in the lending business one should keep an eye on the borrowers. What hard to understand is – then why there is a penalty if a borrower wants

Read more

Prohibition of Exit Fee (a.k.a. pre-payment penalty) in Australia

According Australian Securities and Investments Commission following fees are charged on mortgages in Australia. Entry fees: these are fees charged by the lender and/or broker for setting up and establishing the loan facilities. The types of entry fees include: Application fees. Establishment fees. Valuation fees. Legal fees.

Read more

Low rate mortgage

There has been a lot of talk about low cost mortgages etc. etc. Their providers and the business ethics. Let us concentrate on the business and money part. There is always a reason when someone take up a big-box store style business. First kill the competitors and

Read more