Mortgage renewal term question | GTAMotorcycle.com

Mortgage renewal term question

Torren

Torren

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For those in the financial world a quick question about mortgage renewal terms


Recenty got my renewal the mail. Sometimes things look too good to be true. Previously had a 5yr fixed, looking to do it again. This time around the rate for 5yr is fine. Similar to last time a little lower. They offered a 59m mortgage for almost 2 points less then the 60m 5 year term. What am I missing
Same type of mortgage, same terms.. Just 59m instead of 60. Anyone have any insight?
 
Torren said:
For those in the financial world a quick question about mortgage renewal terms


Recenty got my renewal the mail. Sometimes things look too good to be true. Previously had a 5yr fixed, looking to do it again. This time around the rate for 5yr is fine. Similar to last time a little lower. They offered a 59m mortgage for almost 2 points less then the 60m 5 year term. What am I missing
Same type of mortgage, same terms.. Just 59m instead of 60. Anyone have any insight?
Click to expand...

Two points is HUGE. You sure it's not 2/10's (0.20, rather than 2.0)?
Either way, you can't lose by taking the 59.
Back when I had a mortgage, I used to love shopping it around. Spend 45 minutes working the phone, and beat down the original holder for a 1/4 to 1/2 point. Worked almost every time.
 
Whatever they are offering you, you can do better.

I had a mortgage renewal offer but decided to go 5 year fixed instead of variable, So they resent a renewal. Just for ***** and giggles i called up my mortgage broker who right off the bad knocked 0.1% off (2.99 to 2.89). Called the morgage and said sorry i'm going with these guys. "Okay, we'll match it...." So i called the mortgage broker again and she said okay, i can do 2.79 but thats it. So i went with her again, also because shes a friend of the family i would have gone with her even if she didnt match it.

Throw some numbers up for us. BTW, you wont touch 2.79 5 year fixed now :D, 3 months ago, sure.

Read this:

http://www.huffingtonpost.ca/tim-paziuk/opposite-mortgage-strategy_b_3749752.html

Lock it in. ASAP! In the last two months the 5 year interest rate has risen three times. This is also the reason for the sudden spike in housing purchases in July/Aug. People who were on the fence about purchasing are pulling the trigger to lock in a rate before it goes further up.

Torren said:
For those in the financial world a quick question about mortgage renewal terms


Recenty got my renewal the mail. Sometimes things look too good to be true. Previously had a 5yr fixed, looking to do it again. This time around the rate for 5yr is fine. Similar to last time a little lower. They offered a 59m mortgage for almost 2 points less then the 60m 5 year term. What am I missing
Same type of mortgage, same terms.. Just 59m instead of 60. Anyone have any insight?
Click to expand...
 
Last edited:
Kawithumb said:
Yup. If they're sending you the offer just consider it a starting point...
Click to expand...

I remember when my first mortgage came up for renewal. The rate they offered was way higher than it should of been. So I went over to ING and got an awesome rate. CIBC called me and asked why I changed to ING. When I told them because the rate they offered was way to high they actually said to me that they could have matched it. I laughed at the girl and told her that perhaps next time they should give me their best rate up front.
 
59 month is 3.11% and the 60 month is 4.91% so a 1.8% difference for the sake of 30 days. I know I could do better if I shopped around and haggled a bit, but im pretty content with that.

It just seems to easy and wanted to make sure there was not any known tricks or pitfalls to it.
 
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