how common is it for the new bank to agree to pay the refinancing penalty when refinancing a mortgage?
My balance is $100K and the penalty is a little over $3K.
is it possible to have the new bank pay this penalty and keep my balance unchanged instead of rolling the penalty into the mortgage and increasing my principal balance?
if I'm ready to sign up for other products from the new bank like a new LOC is there a chance they will agree to pay this?
Location: Brampton, Ont, Canada
Posted on: 06-07-10 11:33:05
This days its very hard that bank will take your penalties ...u gotta talk to different banks,,, unless u have strong portfolio ( like investment, rrsp, gic etc..) or else chances are they will not take back your penalty..
just for 100K , why you want to switch ?
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
because I can get a much lower rate.
I am at 5% and I can get P-1%
are you saying that won't make much difference on a 100K mortgage?
Location: Brampton, Ont, Canada
Posted on: 06-07-10 15:05:05
Well it does in a way....
it depends on lot of factors,,, how long you will be keeping your loan ?
can you pay Xtra amount into your current mortgage balance ( reduce balance) instead going with new term ?
don't forget to calculate notary fees ( around 600$-700$) - so make your own calculation 3K +500 ( this 3K include banks charges ?)
anyways, you need to sit and discussed this with professional in mortgage industry,
NOTE: R u 100% sure that you will get P - 1% ????
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Quote:plan to pay it off asap.
Originally posted by Blue_Peafowl
it depends on lot of factors,,, how long you will be keeping your loan ?
hopefully in 3 years
Quote:I could. how is that better than just paying out at the end of 3 years?
can you pay Xtra amount into your current mortgage balance ( reduce balance) instead going with new term ?
Quote:what others fees can be there? will they require a new appraisal?
don't forget to calculate notary fees ( around 600$-700$) - so make your own calculation 3K +500 ( this 3K include banks charges ?)
if more fees keep getting added on then it is not worthwhile any more.
i'm concerned about the penalty itself leave alone new fees.
Quote:yes, i think so.
NOTE: R u 100% sure that you will get P - 1% ????
Quote:
Originally posted by captainbeam
because I can get a much lower rate.
I am at 5% and I can get P-1%
are you saying that won't make much difference on a 100K mortgage?
can you please tell me who is offering prime-1. I am also looking for a good mortgage.
Thanks for your help
rsk
Quote:I know the penalty.
Originally posted by ashedfc
Regarding the blogger of $100k mortgage, (most fixed mortgages has an IRD Calculation for breaking penalty, & its too much).
i've said above that it is $3k.
Quote:i think I've given allth the details above.
I personally feel, unless your benefits are significant than only you should be disturbing your existing 5% mortgage, or else, leave it till renewal. Lets say you get 2% (Prime-0.5%), then your monthly payments & amortization also changes, & you can have a variable interest rate, with a fixed dollar amount monthly payment.
You might also consider a line of credit 2nd position, if you are looking for a equity utilisation strategy.
Either way, unless all details are clear, its very difficult to suggest the ideal strategy (PM me if you want more info).
only thing is amortization which was 15 years out of which 3 years are gone.
I'll send you a pm anyway.
i want to understand what is the equity utilization?
