Redemption penalties

 

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Redemption penalties

Charges 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 Matches

Redemption charge

Redemption charge

The 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 fee

Redemption fee

A fee some mutual funds charge when an investor sells shares within a specified short period of time.


Right of redemption

Right of redemption

The right to recover property that has been attached by paying off the debt .


Extended redemption penalty

Extended redemption penalty

This 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 price

Redemption price

The price at which a bond or preferred stock can be redeemed by the issuer.


Further Suggestions

Redemption
Redemption 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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