Quote:
Originally Posted by Iggy_12
My current rate is 2.34 I locked into a 5 year fixed that is set to renew in April 2025. Feel like I am right in the middle so I am looking for advice. Do i sign a variable mortgage and wait for rates to come down even more as predicted by the end of 2025 then switch over to a fixed when it gets somewhat close to my current rate?
All this stuff seems pretty confusing. To add to the confusion like Erik, i am going through a separation, i had been pre approved to take over the mortgage myself, is it as simple as just assuming the remaining portion of the mortgage or do i do nothing until April? I have a separation agreement from the lawyers, do I just take that to my bank get approved and mortgage doesnt change until its time for renewal in April?
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Get in touch with your lender ASAP. They may allow an assumption, which will be you taking over the mortgage, which is the far better option, especially with a low locked in rate.
They may want you to break the existing mortgage and reapply. That means higher rates now plus fees to break the existing mortgage. If this is the case, you may want to talk to your spouse about keeping her name on the mortgage until your current 5 year term is up. This means her continuing to be liable for the mortgage though.
Depends on what the contract says and the individual banks polices and the relationship you have with the bank.