Consumer advocate Ellen Roseman battles for a worthy cause again over the weekend in The Star. By this time most borrowers in fixed rate mortgages are aware that if they refinance they are charged IRD. This nasty little acronym stands for Interest Rate Differential and was added to mortgage contracts without the in put or feedback of consumers and other players in the mortgage industry. The result is that consumers who are selling or refinancing their homes are being dinged with massive penalties.
Ellen's article talks about the changing penalties and how some very lucky consumers were able to lower them. However, they are the rare exception and only had their penalties lowered because Ellen Roseman was involved.
As a mortgage professional let make you aware that if you call your lender and inquire about your penalty the amount quoted is not fixed. Keep in mind that your penalty is dynamic and changes with the interest rate market. So the sooner you act to get out of your mortgage the better.
Feel free to call or write me if you would like an analysis of your mortgage penalty and whether it makes dollars & sense to break.
Also visit Ellen's blog at http://www.ellenroseman.com/
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