These fees total a percentage of one's left financial when you sell or re-finance. Can you imagine you still are obligated to pay $100,000 when you re-finance your home, plus the prepayment penalty are 4%. You might shell out cuatro% away from $100,000, otherwise $4,000.

Repaired number penalties

Talking about flat costs put by the bank. Perhaps you would shell out $five hundred, regardless of when you pay back the mortgage otherwise exactly how much of financial is left once you refinance.

Interest-situated penalties

This type of punishment charge you a certain amount of shed focus.