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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 MatchesRedemption chargeRedemption chargeThe commission a mutual fund charges an investor who is redeeming shares. For example, a 2% redemption charge (also called a back end load) on the sale of shares valued at $1000 will result in payment of $980 (or 98% of the value) to the investor. This charge may decline or be eliminated as shares are held for longer time periods. Redemption feeRedemption feeA fee some mutual funds charge when an investor sells shares within a specified short period of time. Right of redemptionRight of redemptionThe right to recover property that has been attached by paying off the debt . Extended redemption penaltyExtended redemption penaltyThis is where the redemption penalty continues beyond a fixed or capped rate period, effectively tying you in to the much higher variable rate for a period of time after the fixed or capped period. As a result you get stuck paying an uncompetitive rate that eats into the gains you may have made from having the fixed rate or capped ratein the first place. Redemption priceRedemption priceThe price at which a bond or preferred stock can be redeemed by the issuer. Further SuggestionsRedemptionRedemption price Redemption date Redemption redemption yield Redemption cushion Preferred equity redemption stock (PERC) Overhanging redemption penalty Redemption Redemption Period redemption fees Redemption penalty overhang Serial redemption Redemption statement Mandatory redemption schedule right of redemption redemption date redemption gross redemption yield |
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