Are You Overpaying on Your Mortgage? How Breaking Your Mortgage Could Save You Thousands
Did you get a mortgage when rates were higher? If so, you might have the opportunity to break your mortgage, pay the penalty, and switch to a new lender—potentially saving thousands in interest and reducing your loan term.
Is It Worth Breaking Your Mortgage?
Many homeowners assume they’re locked into their mortgage, but the reality is that switching lenders can sometimes be a smart financial move. Here’s what you need to know:
Variable Rate Mortgage? Easier to break with a lower penalty.
Fixed Rate Mortgage? Penalties can be higher, but savings may still justify the switch.
Less than 20% equity? You can roll up to $3,000 of penalties into the new mortgage.
20%+ equity? You may be able to roll most or all of the penalty into your new mortgage.
Even if you have to pay the penalty out of pocket, the long-term savings can still make switching worthwhile. Lowering your monthly payments is one option, but keeping your payments the same on a lower interest rate could help you shave years off your mortgage.
How Much Could You Save?
Many homeowners who took out a mortgage in 2023 are unaware that they could save thousands by making a switch. I routinely track mortgage rates and savings opportunities for my clients, ensuring they never overpay.
For example, I recently reviewed a client's mortgage and found a way to save them $15,000 in interest while reducing their loan term by 2.5 years. Even after accounting for the penalty, the switch was a no-brainer.
Let Me Track Your Mortgage for Free
If no one is actively monitoring your mortgage for savings, you could be leaving money on the table. I can track your mortgage and alert you when it makes sense to switch—completely free of charge.
If you got a mortgage in 2023 and are curious about potential savings, send me a message. I’d be happy to review your numbers and see if there’s an opportunity to save you $5,000, $10,000, or even more.
Are you looking to secure a mortgage, or do you have an existing one that you'd like tracked for savings? Reach out.