Hi there
If you are looking at repaying a fixed loan early (eg from the proceeds of selling the property which is secured against the loan), then you usually have to pay a break fee. Let's say my fixed loan has $100 outstanding and the bank quotes the break fee at $5. Under my fixed loan I have the ability to prepay $20 of the $100 without penalty. If I prepaid the $20, would the break fee quote be lower?
Thanks
If you are looking at repaying a fixed loan early (eg from the proceeds of selling the property which is secured against the loan), then you usually have to pay a break fee. Let's say my fixed loan has $100 outstanding and the bank quotes the break fee at $5. Under my fixed loan I have the ability to prepay $20 of the $100 without penalty. If I prepaid the $20, would the break fee quote be lower?
Thanks