Hi,
I’m planning on separating soon but the mortgage is also coming up for renewal. I was planning on just letting her keep the house and equity. We were thinking of signing for a second 5 year closed mortgage so that she can get a better rate and lower biweekly payment. But would there be a prepayment penalty if she were to go to the bank later on and get the mortgage changed to her name only? Would she be able to keep the same rate/payment and would there be a large prepayment penalty because we’d only be a month or two into a 5 year term?
We went to the bank and did not tell them we plan to separate. We were given the usual options: 6 month open, 1,2,3 years closed etc. The best rate is with the 5 year closed.
If she IS financially able to assume the mortgage on her own, do banks for their clients to break the mortgage and pay the prepayment penalty, and get a new mortgage? Would this be one of those cases where the penalty would be $15,000 or something crazy high?
If she is NOT able to assume the mortgage and had to break the mortgage, I assume we’d have to pay a large penalty if we had to sell house.
I’m planning on separating soon but the mortgage is also coming up for renewal. I was planning on just letting her keep the house and equity. We were thinking of signing for a second 5 year closed mortgage so that she can get a better rate and lower biweekly payment. But would there be a prepayment penalty if she were to go to the bank later on and get the mortgage changed to her name only? Would she be able to keep the same rate/payment and would there be a large prepayment penalty because we’d only be a month or two into a 5 year term?
We went to the bank and did not tell them we plan to separate. We were given the usual options: 6 month open, 1,2,3 years closed etc. The best rate is with the 5 year closed.
If she IS financially able to assume the mortgage on her own, do banks for their clients to break the mortgage and pay the prepayment penalty, and get a new mortgage? Would this be one of those cases where the penalty would be $15,000 or something crazy high?
If she is NOT able to assume the mortgage and had to break the mortgage, I assume we’d have to pay a large penalty if we had to sell house.
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