Quote:
Originally Posted by Ace
How far in advance of your mortgage expiring can you lock in a rate?
How much should the rate differential be before looking into discharging your current mortgage early? (i.e. if I'm currently on a fixed 5.1% may it be worth it to pay the penalty)
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Fotze is right on everything except the lawyers fees. If you are just switching your mortgage from one lender to another and not changing anything then it is considered a "switch". In that case rather than going to a lawyer a company called FNF can handle it and many of the lenders will cover their fee so it doesn't cost you anything.
His explanation of the payout penalty is correct unless a 3 month interest penalty is greater than the "IRD" calculation.
I am able to get you a rate hold for 120 days. As soon as you are 120 days from your renewal I would reccomend putting a rate hold in place, just in case rates do go up between now and then.