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Redemption penalties |
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Redemption penaltiesCharges paid to the lender in compensation for lost interest if you redeem your mortgage ahead of schedule. During a discount period you will be severely penalised if you try to switch to another product or mortgage provider. Penalties can be stepped just like discounts, and can be particularly severe within the first year. This is to ensure that the costs that the lender endures in setting up the mortgage are always covered. Penalties can be a fixed sum of money, though are often proportion of the loan. With cashback mortgages, you often have to repay the amount of money you received as cashback.Redemption penalties Similar MatchesRedemptionRedemptionThis is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out, the property is yours and the lender has no further claim on it. If you pay of the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest. Redemption cushionRedemption cushionThe percentage by which the conversion value of a convertible security exceeds the redemption price (strike price). Redemption PeriodRedemption PeriodA time period during which a mortgage, landcontract, deed of trust, etc., can be redeemed. Usually set by statute, and after judicial foreclosure. Gross redemption yieldGross redemption yieldSee 'redemption yield'. Mandatory redemption scheduleMandatory redemption scheduleSchedule according to which bond sinking fund payments must be made. Further SuggestionsRedemption feeOverhanging redemption penalty Right of redemption right of redemption Redemption redemption date Redemption redemption Extended redemption penalty redemption yield redemption price Redemption date redemption fees Serial redemption Redemption statement Preferred equity redemption stock (PERC) Redemption price Redemption charge Redemption penalty overhang |
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