Quote:
Originally Posted by bizaro86
If you're renewing to small amount and are paying it off quickly I'd go with a HELOC. Should be cheaper than an open mortgage and more convenient to make payments to as well.
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This. Or you could even do a variable rate, depending on timeline to pay it off in full. A HELOC would be ~1% higher than a variable, but no penalty to break. A VRM has the lower rate, but the penalty would only be 3 month's interest. So even if you broke the mortgage at $50,000 balance, assuming an interest rate of 4.20% (estimated) at the time, that would yield a $525 penalty. Slight variances depending on the lender however, as some lenders will base their penalty on prime rate instead of contract rate, but it should be in that range.