Just had a sketchy idea I wanted to run past everyone.
When I sell my house before the end of my mortgage term, I will be forced to prepay the mortgage, which will incur penalties of 3 months interest plus a closure fee.
If I were to renegotiate my existing mortgage without selling my house, the bank is likely to waive some or all of the prepayment penalties.
What if I were to renegotiate my existing closed mortgage to a fully open mortgage prior to selling my house. As long as the bank waives the prepayment fees from the closed mortgage to the open mortgage, I would then be able to sell my house and pay off my mortgage without incurring any penalties for prepayment.
Any flaws in this plan?
When I sell my house before the end of my mortgage term, I will be forced to prepay the mortgage, which will incur penalties of 3 months interest plus a closure fee.
If I were to renegotiate my existing mortgage without selling my house, the bank is likely to waive some or all of the prepayment penalties.
What if I were to renegotiate my existing closed mortgage to a fully open mortgage prior to selling my house. As long as the bank waives the prepayment fees from the closed mortgage to the open mortgage, I would then be able to sell my house and pay off my mortgage without incurring any penalties for prepayment.
Any flaws in this plan?