Refinancing a mortgage

[skeetaboat]

Are you sure you'll be better off breaking your fixed mortgage? I'm pretty sure you only win if interest rates are falling, or if you can actually pay your loan down and therefore your new loan amount is less.

The break fee is usually the fixed interest rate minus the current interest rate multiplied by the total loan amount multiplied by the fixed period, is that right?

[Fuzzywuzzy]

The break fee is usually the fixed interest rate minus the current interest rate multiplied by the total loan amount multiplied by the fixed period, is that right?

Yeah, pretty much. It's the profit that the bank would lose when you break the fixed period