Thinking....

[Headhunter]

G. ... I suspect that with the new home, your mortgage will increase? If so, it has been my experience that lenders want that loan in their portfolio as well, so I would tell my current financial institution that if they charge me any fees to discharge the current agreement, I will take all of my business to another institution!

As a matter of fact, I would personally visit at least two or three companies and find out what they would be willing to do for you, get it in writing ... you may find that they will actually absorb any fees your current mortgage will charge, just to get your business

When I went through this last year, I simply pointed to the two banks across the street and told them I can easily get what I want for their competitors... I paid NO FEES at all for my new mortgage or for discharging the old mortgage on my old house. The bank took care of all of their internal costs.

Ask and you shall receive... wait and get nothing!

As far as getting a Home Inspection... well, I know a guy who can do that himself! The banks don't care about home inspections... not required or even interested... but they sure do want TITLE INSURANCE... that's where you would spend the money you may have set aside for a house inspection.

Dude call me if you have any other questions!

HH

[John]

Well things have hit a stumbling block.... After talking with my current mortgage company they are going to assess me an 8400.00 or 6mths @ 1400.00 early break penalty.... OUCH!!!!!

 

I dont understand it... so I cannot sell my house until my mortgage come up for renewal? I feel like this is extortion and my house is being held hostage...... and makes little sense to me.

 

I put in a call to my lawyer...

 

nothing is easy I suppose....

 

G

 

Gerritt,

 

Most financial institutions will either transfer the existing mortgage or if the new mortgage is higher than the old write a new mortgage and waive any penalties. If the new mortgage is greater you could also check if it makes more sense to take out a new (second) mortgage on the difference as a variable rate open and then when the original becomes due re-write it for the total, hope this makes sense.

I would also compare the interest rates then and now. What I did years ago is negotiate a blend of the two rates old v/s new as the new rate was higher than the old. They may also apply a blended rate if the new rate is lower than the old.

 

There are many creative ways to get around this and most places will work with their customers. I wouldn't let it be a showstopper.

 

John...

[John]

G. ... I suspect that with the new home, your mortgage will increase? If so, it has been my experience that lenders want that loan in their portfolio as well, so I would tell my current financial institution that if they charge me any fees to discharge the current agreement, I will take all of my business to another institution!

As a matter of fact, I would personally visit at least two or three companies and find out what they would be willing to do for you, get it in writing ... you may find that they will actually absorb any fees your current mortgage will charge, just to get your business

When I went through this last year, I simply pointed to the two banks across the street and told them I can easily get what I want for their competitors... I paid NO FEES at all for my new mortgage or for discharging the old mortgage on my old house. The bank took care of all of their internal costs.

Ask and you shall receive... wait and get nothing!

As far as getting a Home Inspection... well, I know a guy who can do that himself! The banks don't care about home inspections... not required or even interested... but they sure do want TITLE INSURANCE... that's where you would spend the money you may have set aside for a house inspection.

Dude call me if you have any other questions!

HH

 

Well said...........

[douG]

I bought my house thru a private sale - that 3% commission is a lot of money. It paid for a new roof and appliances. There were no issues that arose and it worked out well.