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  1. How MortgageFi Works
  2. Mortgage borrowers

Early repayment feature (ERF)

PreviousMortgage borrowersNextEarn - Liquidity Providers

Last updated 12 days ago

Any time after a mortgage contract is created the borrower can fully repay their loan to take custody of their mortgage assets (cbBTC for example).

This allows borrowers to realise gains on their mortgage position to exit before the full borrowing term (up to 30 years) has been fulfilled.

What does it cost to exit my mortgage using the early repayment feature?

The cost to exit early is the full outstanding capital minus the interest cost plus a 2% fee (of the outstanding capital). Formula: Outstanding capital + 2% fee (outstanding interest is removed).

It's important to take into account the 2% fee plus any previous repayments you've made in order to calculate your true pnl (profit and loss). Your pnl is visible on the mortgages section of the dashboard for your convenience.

short-term profit strategy