#7839405 - 08/29/14 06:18 AM
Re: Mortgage questions..
[Re: SiZ]
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LNXGUY
Post Master Supreme
Registered: 08/06/00
Posts: 106936
Loc: Barrie, Ont,
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You'd probably save more by just upping your monthly payments at your current interest rate.
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-Bill The GN would OWN you, your children and your children's children. '09 E90 335 d 
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#7839467 - 08/29/14 07:36 AM
Re: Mortgage questions..
[Re: LNXGUY]
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spd-dmn
Post Master
Registered: 11/24/04
Posts: 2271
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3.35? even that doesn't sound so great in today's market?
what's the term? 5-yr fixed?
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#7839515 - 08/29/14 08:11 AM
Re: Mortgage questions..
[Re: spd-dmn]
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SW20_MR2
Post Master Sr
Registered: 08/27/01
Posts: 5282
Loc: Markham, Ontario, Canada
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Depending on your prepayment options, you should just be able to call your lender to make the change to the payment amount. I've done it with both CIBC and RBC.
As for switching, it all depends on the math. What he's telling you is probably valid, but I'd have him present some other options. Do you have some type of high-risk mortgage or something? Looking at Monster Mortgage, they've got rates under 3% for anything fixed 1-5 years. You might want to consider a fixed rate, especially in the short term (2-3 years) if your mortgage is quite high. The interest rate risk of going up is lower, and you'd be virtually guaranteed to save money over what you have now.
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1991 MR2 Turbo aka "The Myth"...does it really exist?
2006 Mazda3 Sport aka "Reality"...it really does exist...
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#7840415 - 08/29/14 03:40 PM
Re: Mortgage questions..
[Re: SiZ]
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SW20_MR2
Post Master Sr
Registered: 08/27/01
Posts: 5282
Loc: Markham, Ontario, Canada
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You likely won't be able to increase you payment by 50%. Check the rules in your contract.
I recommend you work with the broker to figure out what makes sense. Your rate right now is pretty shit, so it's probably worthwhile to switch. At the same time, when you sign a new mortgage, make the amortization period smaller to reflect the payment amount that you're looking to make.
_________________________
1991 MR2 Turbo aka "The Myth"...does it really exist?
2006 Mazda3 Sport aka "Reality"...it really does exist...
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#7841273 - 08/30/14 02:06 PM
Re: Mortgage questions..
[Re: SiZ]
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SW20_MR2
Post Master Sr
Registered: 08/27/01
Posts: 5282
Loc: Markham, Ontario, Canada
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The rates on short term lengths right now are quite attractive. The banks will give lower rates because their exposure to offering low rates is low due to the short terms.
The amortization period simply spreads your payments over a period of time that you expect to be able to pay off the mortgage (usually 25 years). However, since you're looking to make significantly higher payments, you can shorten your amortization. This will give you the payment amount that you're looking to make.
_________________________
1991 MR2 Turbo aka "The Myth"...does it really exist?
2006 Mazda3 Sport aka "Reality"...it really does exist...
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