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Discussion Forum

mortgage renewal/interest rates

drozer | Posted in General Discussion on July 3, 2007 07:09am

my mortgage is coming up for renewal and i’m wondering how long to sign for.

what term have you guys committed to, or are considering?

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Replies

  1. jesse | Jul 03, 2007 07:32am | #1

    Right now, you are looking at around 6.875-7% for a 30 year fixed.

    1. drozer | Jul 03, 2007 02:54pm | #2

      i know what the rates are.i'm curious as to what others have signed for.

      1. MisterT | Jul 03, 2007 03:02pm | #3

        I'm looking for a mortgage that pays me 10% on what I owe PLUS makes my payments...:).
        .
        Fixing a hole in the ocean
        Trying to make a dove-tail joint-yeah

  2. alwaysoverbudget | Jul 03, 2007 03:32pm | #4

    i don't see your age,cause that makes some difference to me. if your under 30,live in a area with great appreciation i'd probably go 30 year. but with that said i hate 30 year notes.

    most people won't stay in a house much over 10 years,on a 30 year note i'm guessing [double check] that you will have paid off  about 10% of your loan  by then. so you sell,list with a agent,pay closing cost etc.and if the house hasn't appreciated much you will do good to break even.

    my first few loans were for 30 years ,then as i hit my 30's i went to 15 yrs. took out a mortgage at age 49,10 year note. i don't want to be 65 and looking down the barrel at another 15 years,i might as well rent and my kids wouldn't have to worry about selling the place.

    if you can  go fix rate for 15 years.try  not to rent from the bank. larry

    hand me the chainsaw, i need to trim the casing just a hair.

  3. peteshlagor | Jul 03, 2007 03:36pm | #5

    What's good for others may be disasterious for you.

    This is a very personal decision based only upon your income characteristics and expenses.

    Other than that, the mtg witth the lowest fees and rates.  APY, not the quoted rate.

     

  4. m2akita | Jul 03, 2007 05:14pm | #6

    How long have you lived there?  How long do you plan on living there?  How much is left on the mortgage?  Whats your disposable income ( can you afford the monthly payments of a 15 yr, 10 yr, or a 5 yr mortgage)?

    One thing you can consider is taking a 30 yr, but making xtra payments on it as you can ( treat it like a 15 yr).  That way, when you have xtra money you can put it towards the mortgage, but when things are tight or other expenses come up, you have that lower payment to drop back to.

    Live by the sword, die by the sword....choose your sword wisely.
    1. drozer | Jul 04, 2007 04:02pm | #7

      thanks for the responses so far.to clear a few things up. here in canada, most mortgages have a 25 yr amortization period. but you can't get a fixed interest rate for the full term. when you sign a 25 yr mortgage you choose a variable rate or lock the intersest in for 6 months, 1, 2, 3, 5 (which are the most common), 7, 10, or 15 years. when that period is up, you resign but are subject to the rates at that time. most people sign for one or five years and hope for the best.i have a variable rate mortgage @ 5.25% but have been thinking about converting to a fixed rate. i have 10 years left on my mortgage. i have been offered a 10 yr rate at 6.00% but have seen rates as high as 7.25% for five years.things are different up here..lol.also, we can pay monthly, bi-weekly or weekly. if anyone has the weekly payment option, go for it. it pays off the mortgage much faster, 'cuz you're, in effect, making 13 payments per year.hope this is of some interest (!) to my friends in the south.

      1. rick12 | Jul 04, 2007 11:54pm | #8

        Generally, the longer the period the interest rate is fixed, the higher the rate will be. For example, the rate on a fixed 20 yr mortgage will be higher than an adjustable mortgage. The lenders have to protect themselves against a possible increase in inflation.

        You only pay interest on the outstanding balance.

        Generally, there are no prepayment penalties. If you have a 10 yr mortgage for example, you can elect to pay the required monthly payment plus any additional sum to be applied toward the principal. The additional money you send will go toward reducing your outstanding balance.  You can set up your own schedule for making these "extra principal" payments on a regular basis or, you can send additional principal payments whenever you have the cash available.

        Note that sending additional money will not change your required monthly payment. But it will mean that you will payoff your mortgage sooner than scheduled. It also means that you end up paying less interest than if you hadn't made those extra principal payments. Interest saved is interest earned.

        Rick

      2. mizshredder2 | Jul 05, 2007 12:44am | #9

        if anyone has the weekly payment option, go for it. it pays off the mortgage much faster, 'cuz you're, in effect, making 13 payments per year.

        Things really ARE different up there in Canada...down here, we got 52 weeks in a year.

        <g>

        alright, wisecrack aside: the 6% 10 yr wouldn't be too bad IMO , especially if you get to write off your mortgage interest from your income taxes, like we do down here in the states???

        Only dead fish swim with the stream.                                                                       Author Unknown

        1. drozer | Jul 05, 2007 06:43am | #10

          math was never my strong suit...lol.no, we're not allowed any mortgage write-offs on our principal residence. mortgage interest is deductible on investment property only.

          1. mizshredder2 | Jul 05, 2007 06:54am | #11

            So only those with enough dough to purchase investment property, get the tax break on the mortgage interest deductibility?

            dang!

            (note to self:  strike off Canada as potential retirement locale...)

            Only dead fish swim with the stream.                                                                       Author Unknown

          2. davidmeiland | Jul 05, 2007 07:47am | #12

            ... but you're supposed to retire without a mortgage, having prudently and frugally saved up a bunch of money, made good investments, stayed out of debt, etc. The rest of us are all doing that... way ahead of the curve... aren't you??!

          3. mizshredder2 | Jul 05, 2007 08:50pm | #13

            I'm happy to say that based upon your report, I fit right in with y'all!  My mortgage isn't currently fully paid off as yet, but then - I'm not "retired" yet either.  Looking to make those 2 goals converge at a point in time not too distant in the future...

            Only dead fish swim with the stream.                                                                       Author Unknown

          4. davidmeiland | Jul 05, 2007 10:11pm | #14

            Me too, but every time I do anything they add another 30 years to my sentence.

          5. mizshredder2 | Jul 05, 2007 11:50pm | #15

            Head to the woodshed.  I had the bartender set ya up with a cold one to extend my sympathies!!!!!!!!!!!!

            Only dead fish swim with the stream.                                                                       Author Unknown

  5. MSA1 | Jul 05, 2007 11:55pm | #16

    You know you're kinda asking "What kind of car should I buy?".

    Depends on alot of different things.

    How much is your note?

    How much do you make?

    Are you sinlgle, or have 23 kids?

    Whats your current debt load look like?

    Will you be needing a car soon or other big dollar purchase?

    For me, I prefer longer notes. That way I have a smaller monthly obligation but I always have the choice to pay more (which I do). This way I can build extra equity when I can and not drown when things are slow.

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