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Traum · 09-01-2018, 01:24 AM

I know nothing about how US mortgages work, so I am purely bs-ing here, and treating it as a Canadian mortgage.

If it is a Canadian variable rate mortgage, I think the A lenders typically allow the borrower to terminate the mortgage by paying 3 months' worth of interest. With a rate that is 1.38% cheaper, I'd run the math and see the savings for switching could justify the interest penalty. Over a 5 year term, I think you should be coming out ahead by switching?

Saving $200/month seems pretty significant to me.

09-01-2018, 01:24 AM	#12996
Traum RS.net, helping ugly ppl have sex since 2001 Join Date: Aug 2007 Location: Paradise, BC Posts: 8,390 Thanked 8,158 Times in 3,393 Posts Failed 262 Times in 148 Posts	I know nothing about how US mortgages work, so I am purely bs-ing here, and treating it as a Canadian mortgage. If it is a Canadian variable rate mortgage, I think the A lenders typically allow the borrower to terminate the mortgage by paying 3 months' worth of interest. With a rate that is 1.38% cheaper, I'd run the math and see the savings for switching could justify the interest penalty. Over a 5 year term, I think you should be coming out ahead by switching? Saving $200/month seems pretty significant to me.