CONGRATULATIONS! YOU SOLD YOUR HOME!!
Now the tough part… did you plan prior to selling your home??? If not, you might be in for a surprise.
PENALTIES are a hot topic. If you sold your home and your existing mortgage has NOT matured, you might be in for a real shock when you pay out your mortgage.
EX#1 – A client of mine was quite upset when he found out his current mortgage was not portable after he sold his home. It was a “special” rate mortgage with a Bank that starts with B and ends in O….
The investment property he purchase appreciated by $50,000 and he was quite happy until he realize the penalty to break that mortgage was $20,000!!
EX#2 – Another client made the mistake of going into a lender (credit union) to ask what her penalty was. The irresponsible account manager didn’t ask the right questions and told the client her penalty was $9K
The client proceeded with selling her home and paying the $9K penalty. When she met me, I asked why she didn’t port the previous mortgage…. the client was not even aware this was an option BUT by the time she found her new home, she passed the 45 days allowed for a port. This resulted in penalty which she easily could have avoided.
CONCLUSION – MAKE SURE YOU TALK TO YOUR MORTGAGE PLANNER BEFORE YOU EVEN LIST YOUR PROPERTY FOR SALE!!
ENSURE YOU ARE GETTING THE RIGHT INFO ON OPTIONS FOR YOUR CURRENT MORTGAGE SO YOU ARE NOT DISAPPOINTED ONCE YOU SELL YOUR HOME.
CHARITY – facebook.com/MortgageForACause