Quote:
Originally Posted by Tegra_Devil
Has anyone looked into paying the penalty to get out of a 5yr Fixed mortgage, and renew the mortage under a lower rate if the interest rates tank hard like the states. I feel you would pay (depending on home value) like $5000 in penalties, but save over $15000 in interest payments on much lower rate fixed term.
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Very common - we did that earlier this year after 1 year into our mortgage. We paid almost $10k in penalties (added to principal) but will save nearly $25k in interest over those remaining 4 years, plus added an extra year at ~2.5% which I was happy to have.
-Mark