- Joined
- Jul 6, 2009
- Messages
- 7
hey guys,
curious what your thoughts are on the possibility of mortgage rates increasing at a steady and fast pace over the next few years?
here`s my situation. one of my RTO properties came back on the market. I have three families interested in pursueing a 2 year RTO agreement on it (i`ve done the due dilligence with my broker and it will take them 2 yrs to qualify). BUT the house currently has one year left on the mortgage..
i have two options then:
1) break the existing mortgage, pay the $9000 discharge fee and get a 2 yr term at a much reduced rate then i`m paying now.
OR
2) stay in this mortgage till it expires and remortgage the property for one more year (obviously longer if the current tenants arent looking like they`ll be able to come up with their end of the bargain)... BUT also face the possibility that rates will have increased quite a bit by then.
What would you do?
curious what your thoughts are on the possibility of mortgage rates increasing at a steady and fast pace over the next few years?
here`s my situation. one of my RTO properties came back on the market. I have three families interested in pursueing a 2 year RTO agreement on it (i`ve done the due dilligence with my broker and it will take them 2 yrs to qualify). BUT the house currently has one year left on the mortgage..
i have two options then:
1) break the existing mortgage, pay the $9000 discharge fee and get a 2 yr term at a much reduced rate then i`m paying now.
OR
2) stay in this mortgage till it expires and remortgage the property for one more year (obviously longer if the current tenants arent looking like they`ll be able to come up with their end of the bargain)... BUT also face the possibility that rates will have increased quite a bit by then.
What would you do?
however common sense can help understand the concept without further statistical elaboration. Regards, Neil