Mortgage Penalty Calculator
Estimate the cost of breaking your mortgage early. Compare 3-months interest and IRD penalties to see which applies to your situation.
The lender's posted rate when you signed
Today's posted rate for a term matching your remaining term
Your Estimated Penalty
$6,000.00
IRD penalty applies (higher)
3-Months Interest
$5,438.02
Interest Rate Differential (IRD)
$6,000.00
This is the higher penalty
The IRD penalty is higher
Most lenders charge whichever penalty is greater. For fixed-rate mortgages, this is typically the IRD when rates have dropped since you signed. For variable-rate mortgages, only the 3-months interest penalty applies.
Important: Actual penalties vary by lender. Each lender calculates IRD differently, and some use the discount off posted rate rather than the contract rate. Contact your lender or mortgage professional for exact calculations. This estimate uses simplified formulas for illustration purposes.
Thinking about switching lenders?
Compare current rates to see if the savings outweigh your penalty.
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