Avoiding Mortgage Penalties

Rising interest rates are imminent, so many are rushing to lock down their current low rates (which is a good idea). For some people, that could mean getting out of your existing mortage early, and while avoiding mortgage penalties may not be possible all together, you can do something to limit them. Common practice has banks comparing your interest rate to their current interest rate for the term closest to the amount of time left on your mortgage. Since there’s no rule about which rate to use, they can use any rate they want. With a 2% different between one- and five-year rates, that’s a…