(Closed) Advise please! Anyone ever needed to break their mortgage?

posted 4 years ago in Home
Post # 3
Member
5983 posts
Bee Keeper
  • Wedding: April 2018

@Utopia4us:  …why don’t you just sell the house?

Post # 4
Member
3943 posts
Honey bee

Breaking a mortgage, or a lease? Ive never heard the term breaking a mortgage.

Post # 7
Member
9625 posts
Buzzing Beekeeper
  • Wedding: September 2012

@Utopia4us:   What do you mean by “break the mortgage?”  A mortage is a loan and a loan entails the obligation to pay it.  The house is collateral on the loan.  You have a 5-year mortgage?  You’re still obligated to pay, regardless – but if you’re asking can you abandon the home and skip out on the payments?  No, not without serious consequences. 

Sell the house and use the $$ to pay off the mortgage loan.

Post # 8
Member
3943 posts
Honey bee

@Utopia4us:  Ive never heard of such a thing. We have a 30 year mortgage but plan to sell in 5-10 years WAY before its paid off.

Post # 9
Member
11287 posts
Sugar Beekeeper
  • Wedding: April 2012

@Utopia4us:  depending on your financial institution, you will probably have a penalty for breaking the term of your mortgage.  the amount depends on the amount left on your term and the bank itself. 

your dh may be right.  if you buy another house and transfer the mortgage to your new property, they may waive the penalty (depending on the amount of mortgage).  i have done this without penalty.  there may be a small transfer fee though.

Post # 11
Member
1102 posts
Bumble bee
  • Wedding: January 2010

@Utopia4us:  Are you in the US?

ETA: You answered my question as I was posting.

The only way to know for sure if to check with the bank. Worse comes to worse, you pay the penalty. 

Post # 13
Member
1613 posts
Bumble bee
  • Wedding: June 2012

@Utopia4us:  I think it is a Canadian thing because I have never heard of it before.  Do you have to keep your mortgage for a certain period of time?

Post # 15
Member
9625 posts
Buzzing Beekeeper
  • Wedding: September 2012

@Utopia4us:  In that case, contact your mortgage company right away and find out if you can get the fee reduced.  I’ve heard of the “early payoff penalty” in some cases, but you’re right, it’s less common in the U.S.; but so are 5 year mortgages, lol.  😉

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