Quote:
Originally Posted by Frequitude
How does it work if you're in the middle of your 5 year term, but want to lock in if you find a good rate out there? I've been floating at prime-0.8 for two and a half years now, but want to lock in in the next quarter or two.
Can you do that? Can I go somewhere else and say "you can have my business at this great rate you've posted if you buy out my mortgage over there"?
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If you're in a closed term there is most likely a prepayment penalty that would be involved. P-0.8 is a really good rate, though.
If you are in an open term then you can change and lock in at any time without penalty.
Sometimes if you move your 1st Mortgage and you have a HELOC as well you need to look at doing something with that too.
For example, person has their mortgage and herc with RBC (for sake of arguing), and has decided to move their mortgage to TD. Well, either the mortgage you are moving will fall to a 2nd Charge position behing the RBC HELOC charge and your rates will stink, or your HELOC mortgage charge will have to be postponed to the new TD charge and your HELOC rate will adjust accordingly as it will fall to a 2nd Charge position.