If there’s any chance you’ll break your mortgage before its term is up, know what kind of penalty you’ll be slapped with.
A lot of people never bother to look into it. They’re usually either apathetic or they don’t envision breaking their mortgage.
In reality, people exit mortgages early all the time. They do it to take out equity / consolidate debt, sell the property, get a better rate, apply a windfall lump-sum pre-payment, add a readvanceable line of credit, or even get divorced.
These and other reasons help explain why the average 5-year fixed mortgage lasts just 3.5 years.
In any case, penalties usually come in two flavours: