ON Canada - yes you still pay a penalty especially if you go to another lender. For a variable rate mortgage, normally it would be 3 months interest rate plus discharge/admin fee. You should be OK.

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Hi, to buy new house i took heloc against my old house which i planned to sell shortly to pay off heloc. i could not sell my old house so i am using it as rental property now. i want to convert heloc into fixed rate secondary mortgage. if i convert heloc into fixed rate mortgage, when i sell my rental property will the money from sale be transferred to my primary mortgage company without lump sum distribution to avoid tax penalty? thank you

You might be able to convert the heloc, but two items, one the rate on home equity loans are usually high, and two, home equities are tougher to come by, especially on a rental property. you could look into locking the rate like mary suggested, it depends on the lender and when you took out the heloc as the lock in feature has only been around for a few years. If you sell the rental, any proceeds will be given to you, other arrangements I would consult the irs or a cpa. you may want to look at bank of america for the home equity, I was just talking to a broker contact of mine and she claims they are doing home equities still, best of luck

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I bought my house in feb 2006 for 450k. i have a 5 year fixed rate. i cant keep up with the payments because my husband job (tile industry) is extremely doing bad. how much will my interest or payment go up in 5 years if i cant refinance? i have a 6 month prepayment penalty if i refi or sell before 3 years. should i wait till 2009 to try to refinance? or do a short sale? credit is not great anymore because of late payments.

Depend what is your rate? let see if your rate is a 6.5 after 5 yrs some loans going up to 13 % or more (read your contract has to be there maximo rate.) now if you have a late payments and do not have a home equity don`t even try Refi, Short sale is not the best sollution, but if you can`t afford, what else you can do? call you lender to waive the Pre-payment penalty and sale before foreclosure! if have more question e-mail me fabbian@myfirstcontinental.com

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Hi guys, here's my question. i have a mortgaged home since the last 2 years (jan, 2008 to be precise). i opted for a fixed rate 5 years term, which will expire in 2013 and the rate is 5.9% (fixed). now, i am thinking to sell my house. my question is if there would be any penalty apart from what i owe to the bank? if i sell my house, say for $350,000 and i owe bank $303,000 does it mean i will have a balance of $47000 in hand, or would i incur any penalty as i believe it's the case. i will also contact bank for all details, but want to ask some experts here first to have some opinions. what's the best way to go about in this situation? will i be in loss here? please suggest. thanks in advance.

You would have to look at your mortgage agreement/talk to your lender to determine if it has any pre-payment penalties. Other than a possible lender pre-payment penalty, there wouldn't be any other "penalty" that I can think of.

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We have a home that its rent is about half of the mortgage. my husband wants to get a loan with 3 year pre-pay penalty and take out some money as well. this way he wants to lower our monthly payments but at the same time, get the equity as cash. in 3 to 5 years if the housing market is still bad, he wants to let go of the loan and foreclose, and if the market is good, then he wants to sell. we are a little squeezed for money now and i think he is not thinking rashionally. is this a good thing?? we have a great rate of 6% fixed now on the house, but we got a second mortgage on it that is making our payments a little high. what are the consequences of getting such a loan and should we just try and pay the high mortgage. who knows what's going to happen with home prices? this is a house worth 1.2 mil and we owe about 950 thous on it. help me.

Home price is dropping right now and will continue to drop the next few years. Good luck with your cash out refi., your house isn't worth 1.2 mil.

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My dad wants to transfer the whole legal side and mortgage over to me, how doies he go about this without having the hassle of actually selling the property over to me? is there a way of how to do this? he is in a fixed rate deal, and he is tied into 9/2009, and he has a 5% early redemtion penalty if he sells the house ! help !!!!!!

there is no way to "transfer" a mortgage without approval of the lender, so you need to contact them and they will want to see your income, work history, credit rating, etc. you might want to contact a real estate attorney

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I have sold my house and am not bying any thing else for the time being, as i am on a fixed rate and will incur penalties for early setlement is there a way i can of most of the mortgage except for maybe £5000 and keep the mortgage going untill the end of the fixed rate but as selling i will not own the property.

unfortunalty that will not be possible as the mortgage is secured on the property, which you will no longer own. Therefore as the lender will have no security (the property) on the loan when you sell the property and the deed is exchanged the lender will require you to pay off the mortgage in exchange for the mortgage deed Have a look at the KFI the lender provided you with it will have a section regarding redemption fee's, if you have lost it you can request a copy from the lender

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I am coming to the end of a fixed rate mortgage and considering going on a tracker or getting new fixed rate. at the moment the best fixed rate deals around are about the same as what i will pay on a tracker with the current interest rate...however...on a tracker i will be vulnerable to interest rate rises. on the up side i won't be tied in with penalties if i want to sell my house. are we in a situation where interest rates will rise like in the last recession? or could i possibly benefit from being on a tracker mortgage if interest rates go down? please let me know - especially if you're bit of a finance/economy guru...

I am quoting 6.5% today (6/9/08 11am) on rate/term refinance/purchase, conforming, fixed rates < 80% LTV and no origination. That is UP 1% over the last 2 months and up .25% since this time last week. Also, rates are likely to rise over the next few years. There has been a LOT of fallout from the lending crisis that people don't understand. The downgrading of the bonds on BILLIONS of $ of REITS will cause a tremendous shrinking of available $ to lend. It is DEFINITELY worthwhile to refinance NOW while you still have equity AND rates are still in the 6s. Get with a mortgage professional as soon as possible to get qualified as underwriting guidelines will/have tightened. Best of luck to you!

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I have $70k in credit card and medical debt resulting in a major cut in income ( over 70% cut ). i own my home but am upside down in it and not able to sell it. i have a 30 yr fixed at a low rate. i also have $150k in a 401k. i'm trying to decide if i should pay the penalty and pay off the debt and just focus on the house ( it will still be very tight to pay the mortgage each month, but possible ). or should i just file bankruptcy, erase the debts, reaffirm the mortgage debt and preserve the 401k ( its a protected asset ). a year ago, i had no debt and plenty of income and savings. my employer went bankrupt and my industry has taken a beating so that my past income is not available. i have a wife and 3 kids to support. as of now, all bills are being paid on time and credit is good...but its all smoke and mirrors.

Don't touch your 401K until you retire. If your wife can land a job and you can keep making payments pay your bills. If not then bankruptcy.