Quote:
Originally Posted by supafamous
Penalty clause - assume 3 months interest penalty.
15% annual lump sum ability
I don't know the terminology but if rates go up you should know if the payment goes up or amortisation goes up - I like the latter for stability.
A lot of new mortgage products package the HELOC right into the mortgage - as you pay it down you automatically get more HELOC. Costs nothing more but make sure you know the interest rate for that part.
I don't care about the convert to fixed option cause by the time you want to convert you're already screwed so just buckle up and ride it out.
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If rate changes, it goes to amortization first. Once bank rates hit the predetermined "trigger rate" based on ones contract then it will affect the monthly mortgage payment.