Quote:
Originally Posted by Slava
I don't see the advantage of re-writing this mortgage? One thing that it would almost certainly do is decrease the extra payment amount that you can put on to the mortgage (15% of a lesser amount now), and it would lock you into paying onto the mortgage as opposed to the extra $420 that you now pay onto the principal.
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Yeah, I didn't think there would be any. The only thing I can think of is that by Amortizing over 15 years up front as opposd to 25 the total amount of money is substantially less. With a 25 year mortgage about 28% of your regular payment is going agaist the principal in the first few years. Whereas with a 15 year amortization your getting close to 50% off the bat. I've yet to go through a renewal process with a morgage yet as I've had a bad tendency to sell houses after living in them for a year and needing a new mortgage.
I was just trying to figure out if I'd accidentally come accross a better way to do things or if I should look into something different. By the looks of it I won't make it to renewal with this mortgage either as a move in in the works again. But I think I'll ask about a 15 year amortization on the next place just to see the difference.