So exiting,
I am going to sign a new mortgage this afternoon!, canceled the old last week.
Here is now I saved over $6000:
my old morgage:
240k 6% 5 years. (too high for now, signed it two years ago, not expecting rate will keep going down. but 6% is a VERY good rate 2 years ago.)
if I cancel it, the panelty will be $10100.00 !!!
it is calculated out from rate difference.
Here is the trick how I save money:
I pay down 20% of 240k without penalty.
then the cancelation penalty dropped to less than $8000.
Got a new mortgage 3 year 5.1% with 8500 cash back.
So, I saved 6% - 5.1% = 0.9% for the next 3 years!!!
that is over $6000.00 !!
hehehehe,
Feels so good.
What I learned from this:
BE VERY CAREFUL when you choose the mortgage.
Because I choosed 6% 5 years mortgage 2 years ago, I LOST over $15000 in interest and penalty in it!!
if I don't do the tricks above to cancel it, I will loss another $6000 in the next 3 years.
Experience from blood!!
I am going to sign a new mortgage this afternoon!, canceled the old last week.
Here is now I saved over $6000:
my old morgage:
240k 6% 5 years. (too high for now, signed it two years ago, not expecting rate will keep going down. but 6% is a VERY good rate 2 years ago.)
if I cancel it, the panelty will be $10100.00 !!!
it is calculated out from rate difference.
Here is the trick how I save money:
I pay down 20% of 240k without penalty.
then the cancelation penalty dropped to less than $8000.
Got a new mortgage 3 year 5.1% with 8500 cash back.
So, I saved 6% - 5.1% = 0.9% for the next 3 years!!!
that is over $6000.00 !!
hehehehe,
Feels so good.
What I learned from this:
BE VERY CAREFUL when you choose the mortgage.
Because I choosed 6% 5 years mortgage 2 years ago, I LOST over $15000 in interest and penalty in it!!
if I don't do the tricks above to cancel it, I will loss another $6000 in the next 3 years.
Experience from blood!!