Why do penalties vary so much between lenders?

Big-bank fixed-rate penalties are often calculated using posted rates and the discount you originally received, which can multiply the interest rate differential several times over. Monoline lenders typically use their actual contract rates. The difference on the same mortgage can be tens of thousands of dollars.

Is this the number my lender will charge?

No. Only your lender can produce a binding payout figure, and it changes daily. Use this to understand roughly what you are facing, then request an official statement.

Mortgage Penalty & Break Cost Estimator

Estimate what it would cost to break your mortgage early. Penalty methods vary enormously between lenders, so treat this as a starting point and always get an official payout statement.

Current mortgage balance

Your contract rate

Months remaining in your term

months

Rate type

I know my lender's comparison rate

Estimated total break cost

$6,240

$5,890 penalty plus $350 in fees. Fixed-rate lenders usually charge the greater of three months' interest and the interest rate differential. Only the three-month figure can be shown with the information entered.

Three months' interest: $5,890
Interest rate differential: Not enough information
Additional fees: $350
Likely penalty charged: $5,890

Why there is no interest rate differential figure

An interest rate differential cannot be estimated without your lender's comparison rate for the remaining term. Enter it, or ask your lender for a payout statement.

Get an official payout statement

This is an estimate only. Penalty calculations vary substantially between lenders — posted-rate discounts, comparable-term selection and contract clauses can all change the number materially. Only your lender can produce a binding payout figure, and it changes daily. Always request one in writing before making a decision.

Penalty methods are set by your mortgage contract, not by this calculator. Clover Mortgage Inc. is a licensed mortgage brokerage. This calculator provides estimates for information only and is not an offer of credit, an approval, or financial advice.

Every mortgage is different. A Clover Mortgage broker can confirm what you actually qualify for across more than 50 lenders — at no cost to you.

All calculators

Estimated total break cost

$6,240

Common questions

Why do penalties vary so much between lenders?: Big-bank fixed-rate penalties are often calculated using posted rates and the discount you originally received, which can multiply the interest rate differential several times over. Monoline lenders typically use their actual contract rates. The difference on the same mortgage can be tens of thousands of dollars.
Is this the number my lender will charge?: No. Only your lender can produce a binding payout figure, and it changes daily. Use this to understand roughly what you are facing, then request an official statement.