Mortgage Penalty Shock
$10,000-$30,000 penalties
Breaking fixed-rate mortgages early costs 3 months interest or Interest Rate Differential (whichever is higher). Life changes can cost more than a new car.
The real cost
$13,000 average nationally
How to not get wrecked
- 1Consider variable rates for flexibility
- 2Choose lenders with portable mortgages
- 3Factor penalties into refinancing decisions
- 4Time renewals around life changes
Related money drains
#11
Big Bank Fee Extraction
$250-$360/year
Big 6 banks charge $250–$360/year in fees while paying 0.05% on savings. You pay them to hold your money.
#12
Overdraft Trap
$45-$48 per NSF transaction
NSF fees of $45–$48 per transaction can trigger daily. Being broke costs extra.
#13
ATM Fees: Death by a Thousand Cuts
$4.77 per transaction
Out-of-network ATM fees average $4.77. A $20 withdrawal can cost $24.77.
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