The $150,000 Question Every Homebuyer Needs to Ask

I’ll never forget sitting across from a client who almost missed out on saving over $150,000 — all because of one simple oversight.

They had done their homework (or so they thought): compared mortgage rates, picked a lender, and locked in what seemed like a solid deal. But just before they signed the dotted line, I asked them one crucial question:

👉 “Does this loan have a pre-payment penalty?”

They blinked. “I… don’t know.”

Why That One Question Can Save You a Small Fortune

Here’s the thing: Most people think the most important part of a mortgage is getting the lowest interest rate. And while that’s definitely a big factor, it’s not the only one.

In fact, sometimes the smartest financial move isn’t about the loan you pick — it’s about the questions you ask before you commit.

A pre-payment penalty is a fee lenders can charge if you pay off your loan early — whether by selling your home, refinancing, or even just making extra payments toward your principal.

And if your loan doesn’t have a pre-payment penalty?
🎉 Jackpot.

You’ve got the green light to put extra money toward your loan — maybe from a bonus, tax refund, or side hustle income — and every extra dollar goes straight to reducing your principal.

That means:
✔️ Fewer years of payments
✔️ Less interest paid overall
✔️ Huge long-term savings

How Huge?

Let’s break it down:

If you have a $400,000 mortgage at 6.5% interest for 30 years, your total interest paid over the life of the loan would be around $513,000.

But what if you paid an extra $500/month from the beginning?
You could knock off nearly 10 years of payments and save more than $150,000 in interest.

That’s not a rounding error — that’s a college fund, a retirement boost, or a second property.

Not a Homeowner Yet? Read This Twice

Even if you haven’t bought a home yet, this is exactly the kind of insider info that separates first-time buyers who build wealth from those who just sign papers.

You don’t need to know everything about mortgages. But you do need to know what to ask — and a simple question like “Does this loan have a pre-payment penalty?” can be a game-changer.

The more you understand how your loan works, the more power you have to make it work for you.

So whether you’re a seasoned homeowner or still mapping out your home-buying journey, remember:
💡 The right questions can be worth more than the best interest rate.

Want a list of other smart questions to ask before choosing a mortgage? I can send you a cheat sheet — just let me know!