I once broke my own mortgage 6 months into a 5-year term. Let me tell you a story.

We moved into our latest home in June 2020. Our rate was 2.54% for a 5-year term. The world was still in the initial uncertainty with COVID-19 so rates had just started to decline from more normal levels.

6 months later we switched our mortgage to a new lender at 1.99%. We broke our 5-year term with 4.5 years left. We paid the dreaded early payout penalty. We didn’t wait until renewal. We saved money per month and on interest over time.

Check the numbers:

• 2.54% to 1.99% on a new 5-year term, 30-year amortization

• Principal and interest savings of $160 a payment ($320 a month)

• $4,600 in savings over 5 years even after paying the early payout penalty

This is the difference a good mortgage agent can make. Rates may seem high right now. But I’ll place your mortgage with a lender who offers a low payout penalty and watch for savings if rates stabilize back to pre-COVID levels.

I’ll do the math. I’ll plan ahead.