No. of Recommendations: 1
How does one go about cashing out a CD early? Is it even possible?

I'm thinking about paying off my mortgage. I have the funds to do so but for the most part, they are tied up in several CDs that won't mature until late 2009 and I'm thinking I'd like to do the pay-off in the next month or so.

If it makes any difference, these funds are in my brokerage accounts and the CDs were purchased via the broker.


It probably does make a difference and may, in fact, be an advantage if you got a yield higher than current rates. But typically brokered CDs need to be sold on the open market, and it isn't a very liquid market. If you get a CD through a bank or CU, you cash in for a penalty. Most of mine have a penalty of 6 months interest, but this does vary (I believe my 7-year CDs from Pen Fed have a 1-year interest penalty).
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