WILL NEW BANK PAY MORTGAGE PENALTY OF YOUR OLD BANK?
Hi, everyone. Aleem from themortgagespecialist.com. There’s been a lot of talk about mortgage penalties of late, and I’ve written a couple of other blogs about them as well.
I received some calls over the last couple of weeks, people have been inquiring about whether there are banks out there that eill pay their penalties if you give them your business and bring your mortgage over to them.
I want this to be short, sweet, and very to the point. The question more specifically is, “Will a new bank, who’s getting my business transferred into them, pay the penalty of the old bank that I have to absorb on the way out?”
The answer is “No.”
With that said there will be times that the new institution will provide incentives such as covering legal fees, perhaps. They might even pay for appraisals in some cases. But in my 12 years in the financial industry, I have never, ever seen a bank pay out another bank’s penalty.
People often ask Why?
Because you are legally required to pay that penalty. Both banks, A the bank that you are leaving and B, the bank that you are going to, are both aware of this. That’s an industry standard that you will be paying that penalty.
If you are hoping to get out of that penalty, there are no quick answers. You’ll probably be paying it. Now, there are some services that are out there, where they can help you with reducing the penalty costs.
There are also people out there that have told me that their uncle, or their friend or their gardener’s bank paid for their penalties when they switched over to a new lender. Long and short of it, they might know something i, and my over 12 years of industry experience don’t. You’re likely going to have to pay your penalty. if you want to see how you might be able to reduce them, give me a call and I can put you int ouch with one such company that I’m aware of.
for the mortgagespecialist.com, I’m Aleem Peermohamed