Mindset
New Member
I like the idea of Manulife One. I think thats the best way it you want to pay-off your mortgage as quickly as possible. Yes I know the rate would be higher than a variable mortgage, but overall interest paid would be less.
I get closer to $300 per month going from 5% to 2.6% at the beginning of the mortgage (25 year amort). Shorter amort. or a few years into payments and that difference decreases due (of course) to the smaller principal portion.
Anyway, you certainly made a great decision at the time you picked up your mortgage to go with the configuration you did. Hopefully you're not up for a forced renewal any time soon.
I think he was referring to what happens at the 5-year point.forced renewal? havent seen that happen before.
I just got possesion of my condo this month and had prime - .85 locked in (variable 5 yr closed) since june. The bank has to hounour that rate for the next 5 yrs..
only a good idea if the cost of the credit is cheaper than the mortgage. which is hardly ever the case.
Here's a question to the mortgage experts.
I inquired into breaking my current 5-year fixed mortgage (which is at 5.24% and has 3.5 years left) and refinance at the current lower interest rates. I was under the impression that the penalty for breaking a mortgage is 3 months' interest. It is actually the percentage difference between my rate and the current rate, multiplied by the time remaining on the mortgage, so it makes no sense to refinance.
However, what would happen if I bought a new house? Can I pay off the old mortgage with the money I got when I sold my current place without the huge penalty, and refinance the new purchase with a fresh mortgage?
Quick question,
after you sign an agreement to purchase a condo what happens if:
1) You do get approved for all financing within the initial period and the contract is made official BUT:
2) You lose a job or something along those lines.
Is there a way of backing out with or without penalty?