Wednesday

Renegotiate Mortgage | Avoid Foreclosure | Mortgage Renegotiating Tips

While it is not advertised, most of the mortgage lenders out there are more than willing to renegotiate the terms of a mortgage deal after you sign the dotted line. Renegotiating interest rates on a mortgage loan is one of many options available to home owners who want to keep their houses but have problems paying the monthly mortgage payment. If your mortgage payment is due and you're unable to make your monthly (or weekly) mortgage payment due to a job loss or another situation beyond your control, don't ignore it. Pick up the phone and call your bank because they can sometimes help protect your credit and help you stay in your home. Your mortgage holder doesn't want to volunteer to help you, especially if they don't know you're experiencing problems making your mortgage payments. First thing you need to do is to make sure that you have all your information together. You need to be put together a good case for your mortgage bank. This is true whether you are renegotiating with TD bank, renegotiating with RBC - Royal Bank, renegotiating a mortgage with CIBC or Firstline, Renegotiating with BMO - Bank of Montreal, renegotiating your mortgage with Scotia Bank, renegotiating with First National, Renegotiating with MCAP, renegotiating with any credit union or even if its a renegotiation with a mortgage company or private lender. Often times a mortgage broker can help. Same idea apply if you are in the United States trying to renegotiate with a US bank.

Good luck
with renegotiating your mortgage.

Friday

Canadian central bank likely to cut the prime rate on April 21

Canadian inflation jumped more than expected in February, reversing a five-month trend. The Bank of Canada had forecast prices could drop in the absolute during the second and third quarters of this year, raising the spectre of deflation. Bank of Canada is expected to ignore the price pressures as it plans whether to cut interest rates to fresh historic lows. The next move by the Canadian central bank is likely to cut the overnight interest rate on April 21, 2009.

Monday

Renewing or Renegotiating Mortgage Interest Rates

Interest rates have been falling and you may benefit from breaking your mortgage and transferring the mortgage to another institution. Some agreements do not allow for a mortgage to be renegotiated, but most do. Financial institutions will usually allow you to pre-pay your mortgage in full, but will add a penalty. Many people shy away from renegotiating because they don't want to face any penalties But often the math works out and paying the penalty is worth it.

Your penalty charges depend on what was stated in the original mortgage agreement or in the most recent renewal agreement that you signed.

If your agreement allows you to pay off or renegotiate your mortgage early, you will normally have to pay a penalty. The penalty is generally the greater of three month's interest on your current mortgage, or the interest rate differential which can be calculated as follows.

The new bank or institution will generally cover the cost of appraisal and legal fees. They will not cover the cost of pre-payment penalties and the discharge fee but some bsnks will allow the borrower to include penalties in the new mortgage.

Another option is to blend and extend your mortgage, which often means you won't pay a penalty at all (although the savings won't be as high).

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