Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Mortgage Payout!!! [Old Thread- new questions]

photon · 03-22-2010, 11:30 PM

Gotta run the numbers to be sure, sometimes it could still be worth it.

Scotiabank called the other day offering I think a fixed 5 year at 3.69% or something like that.. Our current rate is prime - .8 variable (so 1.4% right now) so I was going to say no outright, but figured I'd try and figure out what mortgage rates would have to be when I need to renew in a couple of years.

Turns out it isn't as close and I'd thought, from a straight payment point of view the mortgage rates in a few years would only have to be 7% or so to make it worth switching now, even with a penalty.. not completely inconceivable.

Once you look at the amount being paid towards the principle though it's a no brainier to stay at the super-low rate.

03-22-2010, 11:30 PM	#18
photon The new goggles also do nothing. Join Date: Oct 2001 Location: Calgary Exp:	Gotta run the numbers to be sure, sometimes it could still be worth it. Scotiabank called the other day offering I think a fixed 5 year at 3.69% or something like that.. Our current rate is prime - .8 variable (so 1.4% right now) so I was going to say no outright, but figured I'd try and figure out what mortgage rates would have to be when I need to renew in a couple of years. Turns out it isn't as close and I'd thought, from a straight payment point of view the mortgage rates in a few years would only have to be 7% or so to make it worth switching now, even with a penalty.. not completely inconceivable. Once you look at the amount being paid towards the principle though it's a no brainier to stay at the super-low rate. __________________ Uncertainty is an uncomfortable position. But certainty is an absurd one.