Hello, I did a calculation based on your details above. The difference in monthly payment is $62 per month based on 5 year term that is a savings of $3720... But the savings does not stop there. The remaining mortgage balance at the end of the 5 year term is different for both rates, the difference is an additional savings of $1610. So a total savings of $5330! As for the penalty to break with your bank they are the best source of info for this. Give your branch a call and ask them what is the penalty if I pay off my mortgage completely in 30 days from today. That number should be less than the savings you see above. For other readers if your interest rate is higher than the 3.6% you see in this question then the savings is higher as well. I switched a mortgage for a client who had a higher mortgage balance and was at 5.7% interest rate (the rate at the time 3 years ago) He was quoted a penalty of $13,000 to break from his bank, after doing the calculations he did break and pay the penalty because he saved $33,000 over the next 2 years in interest. He almost tripled his initial penalty. There is no investment product that can return this kind of money into your pocket short of loan sharking!! The proof is in the numbers so I encourage anybody who is interested in at least looking into this please give me a call I can do the analysis and send you info for you to decide for yourself. It is not common knowledge so I must mention that at the end of the 25-30-35 year amortization of your mortgage you will end up paying double the amount or your original mortgage balance back to the bank in interest . I can help you find ways to minimize that, give me a call today. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec.

Ontario Canada, there must be a reason why they do not want to renew it. Are you in default ? What circumstances do you have that made the lender reject your renewal. Could it be that what you owe is higher than what the value of the property is ? If you can tell me the reason, I may be able to give you a more definite course of action - email me victor_catalan@centum.ca

Most of the lenders we deal with for a 5 year variable rate mortgage can do that . The question is what is your rate when you lock-in. This is more important as you do not want to lock in at posted rate, it will be counter productive unless your variable rate is currently higher. We have lenders who offer locking in at best rates - meaning discounted fixed rates only offered to brokers.

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If you take out a mortgage at today's rate, which is very cheap by any standard, lock it in for 30 years, and the interest rates starts skyrocketing in a year or two - can my mortgage be changed? in other words, if i pay 5% mortgage, and the general interest rates go up to, oh, let's say, 12% - surely my mortgage company will not honor the 5% i signed up for? or will they? and if they won't - how come they say it's a fixed interest mortgage? i mean, it sounds very odd that the mortgage companies will continue subsidizing such low mortgages? does anyone know? i'm not very savvy about these things ... :(

If you lock in a mortgage of any term with a fixed rate, it is fixed for the term you locked in. Thus a 30 year fixed mortgage is fixed at whatever rate was locked at that time. If you lock in a 5% mortgage for 30 years and rates go to 600% (for extreme example) you are still paying 5%. Just make sure that you pay on time. Look for clauses in the mortgage of any late payment or default interest rate. Look at the contract. Have a real estate attorney review it for you if you have legal questions.

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I was wondering what are the chances of our financing falling through...im so nervous i have heard about peoples loans falling through whne they go to the underwriter. we are working with a mortgage company that their loans are locally processed, underwritten, and closed by their company. we were told by the branch manager that we have nothing to worry about, but that doesnt help. we were pre-approved,found a house,made an offer had it accepted,locked in at 5.5%, gave the earnest money, had the inspection and appraisal done,had our funds verified, had our employment verified, the title company called and said we needed to get home owners insurance so we did that also, we havent had any changes to our credit, havent bought anything big, my husband has been in the army active duty for 15 years so he has steady employment, he had his identity stolen and we have been working to get it cleared up, his score is only 605... if it matters we are in oklahoma state and are using my husbands va loan...im so nervous what are the chances of it falling through?

Just went VA sounds like it should be good but be prepared for any last minute things that they will require, and they always do

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I recently signed a purchase agreement for a house, a bank mortgage company had pre-approved me. in this market today, they offered me an interest rate of 6.5% with the option of buying points. the house i am buying is a fixer upper/foreclosure.great deal at 47,000, i am taking out a conventional loan with 20% down (9400.00) so my loan will be for 37600.00. why are they offering me a 6.5% rate when the rates now seem lower? is it based on my credit? would the points be 1% of the loan amount? how much would each point lower the interest rate? are there any restrictions to requesting a 15 versus 30 year loan (i want 15-- is this based on credit, or what is it based on to get this approved?) i am preapproved, is there any reason that i can be 'not approved' now in this process (other than the appraisal on the property). what documentation will i need usually? they have already done a credit check, and i do bank with them already/checking. when should i lock in my rate? asap, or should i wait, closing is feb 27th. i have the 9400.00 down payment, i have 3 paychecks yet before closing, the closing costs are to be paid for by the seller, i still need to buy homeowners insurance. do i need to pay taxes first too in escrow (i read that somewhere). should i take out a cash advance on my credit card to buy points if i need to (spend now save later) or a personal loan? thanks to all who have answered any of these questions

The reason your rate is high is the small loan amount. Your debt/income ration mat not substantiate a 15 year loan. Paying a point ($375) may be worth it. Plug your loan amount and payment in a loan calculator and see how much you'll save per month by investing in discount points. Then, you can see how long it will take to make up your upfront cost. The only downside, you can't borrow money on a credit card to pay your closing costs. They all need to be verified as yours, unborrowed.

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I have been calling over and over to get my mortgage changed over to a 30-year fixed. i had a couselor from the making homes affortable site recommend this to my mortgage company. just like everyone else my house is worth...and i cannot refinance. i need and want to lock this rate in...what can i do??? it is with fannie mae. the making homes affordable program is great. i believe they are just giving me the run around. i am having mha.gov contact them.

I doubt they will fix your rate with a modification, but they may extend it a couple of years. You need to talk to your lender, they are the only ones that can do this for you.

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The fed reserv recently lowered the rate at which they lend money to banks by .5 and this indirectly will lower the rates at which banks lend to people. the rate with the mortgage company i am processing my 30 year fixed loan with dropped by about .07 to 6.85. do you think i should lock in the interest rate now or do you think its going to drop some more within the next 30 - 45 days when i will close on my property?

In my opinion, rates will either stay the same or drop a bit in the next 30 days. The Fed's recent action doesn't directly affect interest rates - don't let that influence your decision. The Fed was mainly trying to stop the losses in the stock market, and it really didn't help much.

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I was wondering what are the chances of our financing falling through...im so nervous i have heard about peoples loans falling through whne they go to the underwriter. we are working with a mortgage company that their loans are locally processed, underwritten, and closed by their company. we were told by the branch manager that we have nothing to worry about, but that doesnt help. we were pre-approved,found a house,made an offer had it accepted,locked in at 5.5%, gave the earnest money, had the inspection and appraisal done,had our funds verified, had our employment verified, the title company called and said we needed to get home owners insurance so we did that also, we havent had any changes to our credit, havent bought anything big, my husband has been in the army active duty for 15 years so he has steady employment... if it matters we are in oklahoma state and are using my husbands va loan...im so nervous what are the chances of it falling through?

Everything sounds on track to me. Your interest rate is a bit high, but that's still near historic lows. You've done what you're supposed to. You're getting the answers you should be getting. If you've been pre-approved, haven't had any changes to your credit, haven't had any changes to your income or employment status, gotten through the appraisal...then your chances of the financing falling through are very low. If you want a number, maybe between 1% and 2% of it falling through, which means you've got a 98%-99% chance of the purchase going through. Hope that helps.

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If greedy wall street, the creators of our present economic mess are being bailout by the government, then it only makes sense for main street/middle class taxpayers who will foot the $700 billion to also get some sort of bailout. after all, greedy wall street made millions in all the bad mortgage backed securities, cdos, derivatives, credit swaps etc thus whether they are bailed out or not, it will still be a win situation for them. on the hand, hardworking middle class have lost half of their life savings, 401k, have to prolong their retirement years, have to take second jobs to cover their health care cost and tuition for their children...this absolutely doesn't make sense! for the bailout to work and directly impact the financial system, i propose 1/4th of the $700 billion to be given to main street in these forms: a) another round of rebate check, so people can buy gifts for their family during the holidays which will raise revenues for retail shops; b) get two months relief from paying mortgages and rent, so that good citizens who with hard work have not defaulted their mortgage payments will be rewarded and in the end it will help these same mortgage companies that will are trying to bail out to reduce the number of default payments; c) tax credit for everyone so that families can regain back some of their 401k savings that they've lost on the stock market; d) 1 year tuition re-reimbursement, zero percent loans for college and graduate schools to encourage people with dead-locked jobs to pursue other careers that can lift them up to upper middle class level and help them compete globally and chase good jobs in china, india and europe; e) relief for people who pay live in states that pay "vehicle tax", zero percent auto loans or rebate checks for people to pay their next car insurance. f) since the ceo's outrageous salaries will be reduced, it is only fair for that surplus to be used to raise hardworking employees' salary to 7%-10% annually against inflation. the current 3%-5% annual increases is ridiculous especially when few people are given based on office politics while senior management get millions in bonuses, free jet flights, re-reimbursement for the luxurious trips and lunches. again, main street need a break, even if the $700 bailout is given to wall street, they will still squander it and buy more corporate jets, big mansions in cayman island, bahamas, hawaii, bermuda and purchases of islands in dubai and the carri beans. rather , when the money is given to main street, the money will have "immediate, direct on our financial system to stimulate the economy since it will be locally used to pay bills, spent on gas and christmas shopping. please petition to your local government reps so main street, the innocent people will also be bailed out!! from a distressed citizen looking for sponsorship for graduate school!! email if you are rich and can help, our beautiful mighty country, america belongs to all of us.

What you are suggesting was the attempt with the Bush tax rebate. This rebate resulted in a modest effect. Maybe because it was too little, too late, or maybe because it was just too little. But it showed us that if the rebates are given to people that have enough money to pay taxes, there most likely going to save their money or spend it over a LONG period of time, resulting in minimal effects to the real economy. But once everybody spends there rebates, there is nothing else unless the economy rebounds. What they should do to when giving people money is force them to pay down there credit cards and what not. But that's no guarantee they won't run them right up again. But this getting past the real issue, the reason the credit crisis is so bad is because thousands of americans have defaulted on there 250,000 dollar homes + interest . Banks gave money to the american public (those in the real estate industry) for assets that weren't even close to the value of the loan and then these individuals borrowed more money based on this income or in the "false equity" in there homes. 750 billion dollars will pay for over a million 300,000 dollar homes so that banks, law firms, contractors, etc., can start paying there employees again. Atleast the ones that weren't hired as a result of this mass investing of valueless assets. Sorry for the horrible typing, I'm doing three things at once.

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A few years ago my mother fell prey to a predatory lender. her mortgage was bought by several companies and finally landed with indymac bank. about a year ago her mortgage reset, making her monthly mortgage out of reach. to complicate matters further she suffered a heart attack around the same time and lost some time from work. obviously not helping the situation. she did the right thing and contacted indymac bank at once to try and resolve the matter before it got out of hand. since then it's just been a nightmare. her house was set to be auctioned back in may, but i helped her with the paperwork and was successful in getting indymac to consider a modification. we filled out 29 pages of documents, got together her income taxes, pay stubs and all of the other information they requested. we faxed it 3 times, mailed it overnight twice. yet here we are over 3 months later and they say that they do not have all of the documents. and the documents they claim they are missing are ones that i personally placed in the envelope, not once, but twice. i just don't get it. so anyway, they did finally send modification papers, but really didn't do much to make the payments reasonable for her. when her mortgage reset the new payment was over $1,600 a month. her pervious payment was around $1,200. which she could afford. her modified mortgage was $1,530 a month . if they simply locked her into a 30 fixed at 5% she'd be at $1,200 a month. they just won't work with her. to make matter worst every time she calls she speaks with a different agent, frequently in a different state, and they each say something different. the other day she called indymac and a very nice girl told her that the foreclosure was postponed again pending a modification, she was ecstatic, she immediately called the law firm handling the foreclosure to see if they had gotten the information on the postponement, well they had not. so still hopeful that they would be notified once databases were updated etc, she waited. she called indymac the next day and was told that the foreclosure was still scheduled. i was present for both phone calls. i just can't believe how disorganized indymac is, ok, well maybe i can, but what is going on here? so, she's lost all hope. she's called hud, she's been given other people to call and has been on a merry-go-round of phone calls. and she's not going anywhere but in circles. i feel terrible as this truly isn't her fault. she is a trusting soul and never imagined that someone would take advantage of her trusting nature and get her into this mortgage situation. while she should have not been so trusting and she should have read her mortgage loan documents better, she was taken advantage of by someone she thought she could trust. for a little background: she took in a family friend who was going through a divorce. he was"helping" her with her finances as he was an accountant. she had been making a few mistakes with her bills, forgetting to pay some, paying some twice etc, so she he offered to help her, she was very thankful for the help. he recommended that she refinance her house to pay off her credit cards and do home repairs. he showed her all of the money she'd save and how she could get her roof fixed, new furnace etc. it sounded good to her, so she went to a mortgage broker friend of his and refinanced at a low fixed rate 30 year mortgage. (had she read through the papers she would have seen it was fixed for 5 years). well after the refi was done and the check was deposited the family friend disappeared along with all of the proceeds from the refi. yes she did go to the police, but he was very smart and did it in a way that covered him. so she was screwed. after i had looked through her accounts i realized that in addition to the refi money he had been skimming money from her for quite some time. in total he made out with nearly $50,000 all told. i now handle her finances, i just wish i was living locally at the time, perhaps this all could have been avoided. but i know her finances and could pretty much guarantee that her mortgage would be paid. (i say pretty much, because as i'm sure as we all know, situations can change very fast, but i can help her if needed and i've told indymac about this it doesn't seem to matter.) so now, as if that wasn't the worst of it, she's now dealing with the mortgage being reset. she was hoping to refi again before it reset, but as a result of several factors her credit had suffered and she was unable to refi before it reset. so now i feel terrible, i was not there to protect her before, but i'd like to do anything i can to help her stay in the home where she raised her family, the home that she worked hard for. it's been her home for many years and she had expected it to remain the family homestead for many years to come. so is there anything i can do to help her? is it too late? the auction is scheduled for september 17th. it truly doesn't make sense for them to for she did miss a few payments while recovering from her heart attack, once she got back to work and her regular paycheck she started paying the $1,200 or more if she could. she has now been told in writing that they will not accept any payment below the $60,000 (that figure comes from her original mortgage, it was a ballon payment due at the end of her mortgage) they now say they need the balloon payment now to consider any further action on her account. and even paying the $60,000 would not guarantee a modification. in addition they will be adding a $21,000 ballon payment at the end to cover the $6,000 she's behind in the mortgage and $15,000 in legal and other "fees". she's been trying to find a boarder to help fill the gap, but has been unsuccessful. i'd move back home, but i've got my own home and selling in this market is not an option. i looked into it, i bought 3 years ago for $265,000, current value: $170,000. she owes $225,000, at auction they'd be lucky to get $75,000.

You should tell her to take the modification offer. She isn't getting exactly what she wnts, but pretty close. For her shortfall do what the rest of us do for our parents, get out your check book. She only needs 330 a month, not enough money for you to allow her to loose her home.

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I am going to try and make this short as possible = ) i am renting a house in al to tenatants who moved in knowing the house was for sale and have a month to month agreement. they paid the first month for june now have not paid july. i have sent the notice to quit 10 day here in al. i have to go file aug 5th to have sheirff serve them to get them out. they were real eager to move in and after they moved in the complained about the lock-box on the door to the point it made me and my realtor get into it and i basically fired her. the house is still on market but is not being shown at this time. these renters are deadbeats and know the system, they boldly told me they have 30 days to get out. this past saturday they threw a huge party for their kids complete with moon bounce huge blow up water slide, tent with chairs a lot of people there lined down the road. yet they are not paying rent. i do not live in area no more i married and moved 3 hours away. my family still lives in area and house is on my mother's way home she did take pictures of the shindig in case they decide to stay and for some reason try to fight the eviction. i wanted to know if i send them a letter threatening that the house is being put back on market complete with lock-box if this is legal. i know they will not like this (lock-box) and hope they will just move without me having to pay court cost etc. i know i am not going to get anything out of them but i just need them out in order to get a tenant that will do right. i am covering the mortgage on the rent along with 20 dollars extra profit. i am not a slum landlord and this is a nice house. we have had a bad year ourself(our home caught fire, now live in a 5 room apt) and i am not able to pay this mortgage hence that is why i got a tenant. i will be deliquent aug 1st 30 days with my mortgage company as well and this irritated me because i was trying to do the right thing and not let the house foreclose. any ideas??? please help? alica thanks low and behold i had a money order in the mailbox today9 go figure) but it was only for the rent and not the late fee. next month they will be getting the notice 10 days after the first since they already have a bad payment history. i still think they are deadbeats, but thanks for the advice!

They don't have 30 days to move when they don't pay the rent, there is a procedure to follow and you have mentioned you will be going on Aug 5 to get them served by the Sherif...just follow this preocedure and you will get them out. I have rented a house that was for sale and they did not put a lock box on...when someoen is living in the house they don't put a lock box on...the realtor does not have free access at that point....the house would have to be viewed with proper notice to the thenants.