The Truth About Mortgage Clawbacks

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Most homeowners don’t know this: when a loan officer closes your mortgage, they get paid a commission. But if you pay off that mortgage within six months, the bank claws that commission back.

And that’s why so many loan officers tell you, “You can’t pay it off early” or “You can’t refinance into a HELOC yet.” It’s not because the law says you can’t. You can. Anytime you want. Tomorrow if you choose.

It doesn’t hurt you at all. It only hurts their paycheck.

We’ve even seen people hold off for a few months just to protect a friendship. Fine. But understand this: you’re never legally required to wait. The system just incentivizes loan officers to convince you that you should.

Move when it makes sense for your finances, not their commissions.

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