By Admin on Feb 27, 2009 in Renting & Real Estate
Jill asked:
I signed up for fixed rate which isn’t due to expire for a couple of years , can i get out of it before it`s due and will there be a fee?
I don`t want to pay it off i just want to change to a cheaper one now that the mortgage rate has gone down…or if i stick with it will it mean i pay off my mortgage quicker?
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I signed up for fixed rate which isn’t due to expire for a couple of years , can i get out of it before it`s due and will there be a fee?
I don`t want to pay it off i just want to change to a cheaper one now that the mortgage rate has gone down…or if i stick with it will it mean i pay off my mortgage quicker?
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Well you can pay it off or file for bankruptcy if thats what you are referring to. And if you pay it off early, there shouldn’t be a fee as most standard mortgage contracts contain clauses that allow you to pay off early without penalty.
Frank112 | Feb 28, 2009 | Reply
probably and yes. there is no such thing as a free lunch.
Spock (rhp) | Mar 1, 2009 | Reply
You want to refinance for a lower interest rate, which is fine. Some lenders have a fee they charge for paying off early, but most don’t. What will happen is you will find a new lender to do a mortgage with. You will get a loan for x amount of dollars and the existing mortgage will be paid off. You will still have a mortgage but with the new company, and the old will be cancelled.
KitKat | Mar 3, 2009 | Reply