It’s because the concept is so simple that some people say “there must be a catch or I must be missing something”. We can assure you that there is no catch, there is no fine print and you’re missing nothing.
PaylessPenalty.com is doing nothing but providing you with short term capital so that you can take advantage of the fact that your mortgage allows you to make an annual lump sum payment. By making that lump sum payment just before your mortgage is to be paid out the penalty then becomes based on the lower mortgage amount. That’s where the savings come in.
How does PaylessPenalty.com get the money back that they put down on your mortgage? On the closing of your sale or the refinance of your home, the lawyer has instructions to pay the money back from the proceeds. At the same time the savings fee’s are calculated and split 50/50.