Mortgage Exit Clauses: Higher Interest vs. Lower Termination Costs
Homeowners looking to secure long-term financing often face a significant financial risk: the early termination of a mortgage contract. In many European markets, including Switzerland, lenders charge a substantial prepayment penalty, known as a Vorfälligkeitsentschädigung, if a borrower ends a fixed-rate mortgage before the agreed-upon date. To mitigate this exposure, some financial institutions offer contracts … Read more