The stats tell us that on average we sell our house and move every 7 years.
If this is the case, we cannot expect to be an expert on the subject of buying and selling if it only happens once every 7 years. If you went downhill skiing once every 7 years or fixed a plumbing problem once every 7 years you surely would not be considered an expert.
You go out looking for a home because you’ve decided it’s finally time to move, you work with a great agent and you find just the right home. Next you have to get your home sold. Now you’re at the stage where you’ve got an offer on your home and it’s going to sell and everything is working great. Once some of the euphoria of buying and selling settles down you need to get things lined up with your lawyer and your mortgage representative.
This is where all the fun of buying and selling in the last month can hit home. You did not think about “The Mortgage Penalty” or perhaps you told yourself “how bad could it be? We can look into it later.”
I was speaking with someone yesterday who is in a situation where they have to sell their home. Subsequently they have to break their mortgage and they just found out the penalty is going to be $9,500.00! Ouch, that hurts!!
Every situation is unique and because of that I strongly advise that you have a serious conversation with your mortgage rep at the beginning of the home buying & home selling process to avoid such an unwelcome surprise!