Note that in most cases, the penalty calculation doesn't account for any decrease in the mortgage balance.
Not exact matches
But I think even so you'd probably want to
do some
calculations to get a ballpark idea of what the
penalties are going to cost you.
The least that they can
do is standardize the
calculation / computation of the mortgage
penalty fees, and to make the formulas for calculating the
penalties and the fineprint transparent to the client PRIOR to signing the mortgage contract.
But they still had that same
penalty calculation formula I absolutely don't like.
There is no need to charge
penalties based on these
calculations... all we can
do is try to spread the facts and hopefully, more people will realize how terrible this.
I urge anyone being faced with an outrageous prepayment
penalty to review your documents at the signing of the mortgage and
do the
calculation based on how it is outlined to be calculated from the document you signed.
As Part of a SEPP Program For
penalty - free distributions that are part of a series of substantially equal periodic payments (SEPP) over the life of the IRA holder and or his or her beneficiary, the payments must last five years or until the IRA owner reaches age 59 1/2 — whichever is longer — and the
calculation of the payment amounts must be
done under certain IRS - approved methods.
So, we designed the software to
do the
calculation of the
penalties based on your current situation.
Banks slowly changed their own policies to allow for IRD to be charged... and today we have banks using an unfair
penalty calculation that
does more than cover any potential loss... it makes the borrower pay an unfair amount!
If you don't get the salary
calculation right, you'll be hit with major
penalties.