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With the spring home buying season in full swing, aspiring and existing home owners would be wise to research the cost of breaking their mortgage. Depending on the type of mortgage you have, penalties might be zero, three months' interest, or something known as the interest rate differential amount.

In this video, Preet Banerjee breaks down the two main formulas. Because the costs can vary wildly, make sure to ask your lender how they calculate the penalties, and how much you will owe if you break your mortgage.

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