Did you miss a payment?

Nope. But it looks like we are idiots. Wife claims we haven't received a renew notification. Our 4 year are up. Looks like they auto renewed us at a shitty rate for 6 months.

Apparently I need to open the mail from her bank (mortgage is with her bank, not mine).

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How does Danny Hart sit down with balls that big?

Call the bank and see if you can negotiate a lower rate. If not, tell them you are jumping ship, assuming you don't have a pre-pay penalty.

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_________________________________
I'll be what I am
A solitary man

I am definitely calling the bank on Monday.

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How does Danny Hart sit down with balls that big?

are you saying that you only have 6 months to go and your mortgage is paid off? and they hiked your rate to 7 percent for the last 6 months? if that's what you're saying, you can call and bitch but it's going to be too expensive and time consuming to do anything but bitch. if you calculate the difference between 3.xx and 7 percent on 6 mortgage payments, it's a nice dinner out with the wife.

but maybe i misunderstood you.

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Dan Empfield
aka Slowman

my understanding is he had a 4 year fixed then variable after that.

I have 25 year mortgage. 4 year term that apparently just ended. Bank has made it a 6 month term at 7%.

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How does Danny Hart sit down with balls that big?

i'm still a dunce on this. you have a 4yr ARM on a 25yr mortgage that turned out to be a 6mo ARM?

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Dan Empfield
aka Slowman

So it's a fixed to float? If so, I'd refinance assuming there's no penalty.

It's a 25 year mortgage. You renegotiate the interest rate at the end of the term. First term was 4 years. Second was as well. Apparently my 2nd 4 year term just ended.

Bank automatically rolled us into a 6 month term at a shitty rate.

Capise?

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How does Danny Hart sit down with balls that big?

Ah. Okay. I'm out of my depth. I'm entirely unfamiliar with that kind of mortgage.

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Dan Empfield
aka Slowman

7% is kind of an F U rate. What do the rates look like up North ? Can you refi into a fixed rate loan now ?

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"I think I've cracked the code. double letters are cheaters except for perfect squares (a, d, i, p and y). So Leddy isn't a cheater... "

What we got here is a failure to communicate. You got the FU rate for the lazy, ignorant, or just too busy to pay attention rate. I have done the same exact thing many times, just not on a mortgage. Usually things like free cable trials, or satellite radio, or some other pay per month service that hooked me on a too good to be true trial.

And each time I say dam it, I'm going to cancel this thing on time, or renegotiate it before the FU rate kicks in and I'm stuck with it for a few months. Of course I never do, just got hosed on my Sirius radio reup, so I called to cancel after being with them for over 10 years, and they groveled and gave me an interdictory rate, less than 1/2 of what they auto billed me for.

Anyway join the club, if you want to play hardball with them and are actually in a position to go through with any threats of leaving them, you might just get back to a good rate. They are still very low right now, perhaps a 7/10 year ARM this time around? Give yourself more time to procrastinate, I have 6 more years before I have to do something about my mortgage. Usually pull the trigger before deadlines, terrifies me that I might wake up with a 7% loan one day, the horror!!!

Canadian mortgages are different than US mortgages. In Canada you pick an amortization period typically 20 to 30 years initially but can be less, this determines how long it will take you to pay back the loan. Once you have your amortization period you work to get a good interest rate (fixed or floating rates) and term for a length of time this rate is good for, normally 5 years but anything from 1 year to 10 years are common. The only the time you would get a 6 month term would be if your pervious term expires without you renewing it for another term which you would normally do for a shorter amortization term than you had before. Rinse and repeat until you have payed back the loan. The loan effectively ends at the end of the loan period, so it isn't really a refi or a prepayment, in theory if the bank hadn't auto renewed the full loan was due age the end of the last loan period.

Ben

Current rates are around 4%.

Why not just fix it at 3% for the whole loan term?

The longest term they offer is typically 10 years. And good luck getting 3% for 10 years. 10 years IIRC was about 5%.

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How does Danny Hart sit down with balls that big?

Considerably less than that actually. Should be right around 3% or slightly less.

Freddie Mac reported this week that current 30 year fixed mortgages are at 3.78% with 0.5 points.

I just wrote in Canada for very close to 3%.

Pretty sure you can do a five year fixed for under three percent still. Can definitely get a variable for under three. Check out HSBC - about a month ago they were pitching lowest rate on the street.

A year or so ago we got 5 year fixed for 2.87% I know rates have gone up but I'd think under 3% is still doable.

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Long Chile was a silly place.

https://www.marketplace.org/2015/10/14/world/us-30-year-fixed-rate-mortgage-outlier


“In many European countries, the financial system is not set up to provide a cheap, liquid and therefore widely available 30-year fixed-rate mortgage,” Kirkegaard said. “Because it is not offered at a price that is anywhere near affordable for them, Europeans live with a kind of inherent uncertainty about future interest-rate developments that would be hard for many Americans to stomach.”

5 year @ 2.39% a year ago here. You can definitely still get under 3% now