It’s Monday, the start of a new week.
Ask your embarrassing, silly, or worrisome questions. Come learn and discover without judgment.
It’s Monday, the start of a new week.
Ask your embarrassing, silly, or worrisome questions. Come learn and discover without judgment.
I didn’t check your math, but yeah, sadly, that’s exactly how it works in Canada. This isn’t called refinancing, but renewing.
You could refinance if you wanted to extract additional equity from your home, for example if you had $450k left to pay, but wanted to borrow an additional $30k for home renovations ; or if you wanted to extend your amortization back to 25 years or even 30 years, which would allow you to decrease your monthly payments.
While selling and renting is an option, I would also consider refinancing to extend amortization, but you should get in touch with your bank or mortgage broker in order to see what is possible in your situation.
Yes, sorry I meant renewing but wrote refinancing. That’s true, I could extend the amortization to 25 years but that means I’d be in the workforce longer than I’d hoped. I’m also worried about an impending housing crash with rates so high, it could mean my home would lose value, so I was thinking if it would make sense to sell and get the equity now, rent for 2-3 years and then potentially buy another place anticipating a crash. Don’t know if that would ever make sense, just a shower thought.
On paper, it makes sense. But it’s hard to predict the future: what if you were to sell now and the prices kept going higher? You may only be able to re-enter the market at a much higher price (or not at all). Would you be confortable with this situation?
Not to show lack of empathy, does it work any differently in other countries?
In France, one of my friends has a 25 years 0.8% mortgage. The fees to break it are also limited by law, so if the rate was ever to drop below that, he could just pay the fee and get the new lower rate, but the bank will not be able to increase it.
On the other hand, refinancing is harder in France.
France always sounds fucking awesome.
Like any place, it has good sides and bad sides. But many French people are trying to immigrate to Canada/Quebec, so probably not that awesome in the end.
I’ve read someone in the US can lock in for the 25 years.
Yeah they’ve got 30 year mortgages, or at least had
Heh sorry I lost context, I just meant that after the period the rates get adjusted