Guidance reviewed 2026-10-23. A lender’s dated payout quote identifies the actual payable amount.
TWO COUNTRIES / DISTINCT CONTRACTS
The details that change your exit.
Start with a written payout quote.
01 / UNITED STATES
Find the actual penalty clause.
Not every mortgage has a prepayment penalty. Confirm the trigger, formula and time window. The model does not decide legality, apply statutory limits, or calculate commercial yield maintenance or defeasance.
Months to renewal drive this simple IRD. The lender’s rate definitions and discount treatment matter. Actual compounding and present-value methods can differ from this approximation.
Confirm principal, charge formula, rate inputs, applicable privileges, expiry, accrued regular interest, discharge charges and cash-back clawbacks. Compare these with the new loan’s closing costs and repayment schedule.