re-mortgage?

I'm locked in right now @ 5.75% on our mortgage. It's a pretty good size mortgage so a lower rate would save a lot of cash. I'm asking my bank about re-mortgaging... anything I need to know or do?

 

If you are with a bigger bank right now it shouldn't be an issue. How much is left of your term? Right now PC financial is offering a variable mortgage of prime +.8 leaving you with a wonderfull 3.8%..
You will most likely have to pay an early payout penalty of $500-$700, unless you are with a horrible bank like i am where my payout penalty will be 5k+.

 

If you renew with the same bank, they'll probably waive the discharge fee.

 

I got an email from my broker about doing this and the math looked pretty good. I'm not going to do it because I'm in the middle of restructuring the business and need my personal finances to be solid right now.

 

Shop around BOOTS. 5.75% isin't a great rate. I just met with clients who are getting 2.75% at Royal (Open). We are offering 4.69 locked in for 5 years. I would lock in again at whatever you can get, we have been in meetings all week discussing the economy and the banks will no longer be able to drop rate substantially with prime much lower.
If you do refinance at another FI, tell them you have this for a payout penalty at your current institution and if they want your business enough they will pay out your fees along with the mortgage there.

Also, go to your meeting prepared. If I have a client come in with rates printed off or offers from other FI's in town, I will try to beat the best rate they can get else where.

 

The penalty is 3 months interest and a small fee for paperwork. The fee on my mortgage of $160,000 (when I asked 2 months ago) was $1400 + 200

 

Fees vary depending on FI.

 

Exactly some have a set payout of 3 months interest or Interest differential over the term, which in my case sucks.

 

Some waive the shit all together. If I have a member I like I click waive. Can be done!

 

I still can't figure out why more people don't have variable mortgages? I think they assume when the rate changes, your payment changes, however it does not. The only thing that changes is the portion of your payment that goes to interest versus principal. Historically between 1950 and 2000, 88% of the time you are better off with a variable mortagage.

 

I assume those clients have had this mortgage for a while? I don't think Boots is going to find a Prime minus mortgage right now as i don't know of any FI that is currently offering them right now.

I wish i could have ported my old mortgage to the new house, i would be paying 2.1% right now.

 

Thanks for the advice. I have an email into my bank and am chatting with another branch as well

 

Try checking a mortgage broker out, they can almost always beat a banks posted rate

 

not sure if its useful or not, but I'm at a variable rate of prime minus .6% on about 180k... not complaining in the least right now....its with PC Financial...

 

Boots, I have a guy in Bedford that has gotten me pretty good rates, I am variable, but if you want his infomation, send me a PM. He is a broker and has beaten any of the bank quotes I have gotten.

 

thank you for this....I did not know this. I am not a home owner yet but we are looking in the spring/summer. this is something I didnt know about variable rates.

I just assumed if affected your monthly pay out.

 

It only affects how much goes to interest (obviously). There's a calculated "trigger" rate that if the rate goes above, your monthly payment increases.





Variable FTW (2.4%).

 

Scotiabank says it'd be a $9000 penalty to break my current term

 

It is because you are richer than you think.

 

Even if you get another mortgage through them?

 

yeah... he's telling me he can lower my rate to 5.45% as a "blended rate" but it will extend my mortgage term from the 3 I have remaining to 5 years. Basically he's saying he'll lock me in on a fresh term for 5.45%

I'm going to shop around and see what I can find.

 

If I had only 2 years left in my term the penalty is 3 months interest.

 

shop around, some places will pay your penalty to get your business. When i baught my 1st house few months back i took open variable rate, I can lock in at anytime for 1% higher then my variable. Right now i'm sitting at 2.75% and i'm with BMO

 

This is something I need to look into. We locked in 3 years ago on a 5 year term at 4.6% I think. So where are rates gonna be in two years? My luck they'd be up around 17% or some BS number

 

I just locked a 5 year at 4.49% with Royal in Bedford.

 

prime -.8 here

Boots I can give you my brokers name if you want he beat all the numbers I gave him, even the ones I made up

 

Im locked in at 4.75.. I was pretty happy with it a year ago, now I see everyones variable that is super low.... hmmm.

 

I locked in at 4.755 almost 2 years ago and was happy as a pig in shit.



how the fuck do you get a variable Prime less mortgage right now???????

 

Can't

 

I will find one. fuckin skanks

 

When I signed all my papers in September my lawyer said, "Wow that's a low rate. Wont get that now."

Subprime is a dinosaur now.

 

My lawyer thought a 5 yr fixed at 4.75 was a misprint a year and a half ago.

 

It's all relative. A year and a half ago that was a great rate.

Now it's decent.

 

its still decent, but since we're gonna be here for a while now, I want to get a good variable.

 

A good variable is prime, and those are few and far between.

p + .5 or p + 1 are more likely. That's still 4% right now.