How You Can Save Thousands on Mortgage Fees When You Sell Your Home

Are you a prospective seller adding up the potential fees involved in your move? Here is how you can proactively lower a couple of those significant mortgage-related costs:

Reduce Your Prepayment Penalty 📉

When you sell your property and break your mortgage early, you will likely face an interest penalty of at least 3 months. For an average detached home, that fee can be well over $10,000.

Here is how you can slash that penalty:

• Increase your regular payments immediately.

• If you have savings available, pay down the principal right away.

• Utilize your mortgage’s 10% or 20% prepayment options.

• If your mortgage anniversary date falls between now and your possession

  date, do it again; that option resets every year.

Port Your Mortgage Insurance 🔄

If you bought your current home with mortgage insurance, you may be able to take that insurance policy with you to your new home, rather than buying it again.

Depending on your new home's price:

• Trading up to a higher value home: You will only be charged a premium for the increased value amount.

  
  

• Trading even or down (equal or lower value home): There are no extra fees.

This simple strategy alone can save you thousands of dollars.