Quote:
Originally Posted by blankall
The issue is that he is already locked in for 3 more years. He can't get the 2.99 rate or the 10 year deal without paying about $6000 to break his current mortgage.
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3.90% for three years blended with 3.29% (likely the best his bank is offering) for two years with the penalty blended into the rate is less than the 3.90% they're offering you. They're charging you the penatly either way. It's just blended into the rate.
Do the math on what your payments would be at current rates plus the penalty vs. your current mortgage vs. what they're offering you and see which one works out best. I don't have time to get into this more but feel free to PM me.