On Tuesday, March 2, 2021 at 10:08:28 AM UTC-5, Ed Pawlowski wrote:
On 3/2/2021 9:24 AM, trader_4 wrote:
On Tuesday, March 2, 2021 at 12:44:39 AM UTC-5, wrote:
On Mon, 1 Mar 2021 23:07:18 -0500, Ralph Mowery
wrote:

In article ,
says...

On the other hand, those who got variable rates in 1992 when they
were starting at 9.25%, made out quite well as they quickly dropped
to 7 and later 5%.



When the rates drop one can usually negociate for the lower rates even
on fixed rates, or go to another bank (lender).
You'd need to buy your way out of the mortgage - the penalty
is usually the interest they are losing plus a fee for the
trouble.
John T.

Is that how it works in Canada? Not here in the US. I've never seen a mortgage
with a pre-payment penalty at all and I would bet that it's probably illegal in many
states. I've refinanced many times with no penalty. The only costs are whatever
it takes to get the new mortgage, eg application fee, appraisal fee, misc fee, etc.

I know of one but it is a commercial mortgage in the $1 million range.

I just checked. Since the 80s prepayment penalties have been in illegal in NJ,
on fixed rate mortgages, but they are OK on ARM mortgages.