Home Loan Exit Fees: The Cost of Ending a Home Loan Early

@inproceedings{Ashton2010HomeLE,
  title={Home Loan Exit Fees: The Cost of Ending a Home Loan Early},
  author={Neil Ashton and Ian Ramsay},
  year={2010}
}
The fees charged by financial institutions are coming under increasing scrutiny. In this paper exit fees, or the fees charged by financial institutions for early termination of a variable rate mortgage, are analysed. The authors discuss why these fees are a concern, including the potential impact on competition in the home loan market, the high rate of refinancing, and the way in which exit fees can exploit human cognitive biases. The authors also review the regulation of exit fees and present… CONTINUE READING

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