Question:

Right now our mortgage is 7.49% but du in 1.5 years. Can we remortgage at the lower rate without paying a fortune in penalty?
And can we use the equity in the home to pay some depts and only get one payment. OUr mortage balance is about 110.000 and the last municipal evaluation was over 160.000

Thanks

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Answer:

Review the standard charge terms attached to your mortgage to determine the penalty required be to pay off your mortgage early. Most lenders charge the greater of 3 mos interest or an interest rate differential, whichever is the greater penalty. If that applies in your case, you would be looking at approx. $5,000 as an interest rate differential penalty. Your lender should be contacted for accurate numbers.
Your can remortgage your home up to 90% of its current value (which should be more than the municipal evaluation) and yes you can use the proceeds to pay out all your loans including the penalty to your current lender. As of today's writing we have 5 year mortgage rates as low as 4.8% and variable rates lower still. It won't take long to recover your penalty. John Lozinski

Answered By: John Lozinski

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