Tuan,
There is another possibly not so minor aspect to this
conversion. If your current loan is an origination
loan, it is non-recourse. The conversion is
classified as a re-finance, which is a recourse loan.
Only an issue if your house declines in value and you
try to walk away. The offer of this conversion is an
attempt to reduce the likelihood of losses due to
foreclosure in areas of declining home values. In
some areas, this is (or will be) quite an issue.
Joe
(now watching the US financial news from Christchurch,
New Zealand)
>>[RCSE] Mortgage rates resetting?
I know this is nothing to do with Sailplanes... well
in a way a little bit.
If you have an adjustable mortgage that is about to
reset and the bank is advising (read scaring) you to
convert to a fix, be careful. All the resets I know
are resetting at LOWER rates than what you currently
have. And the rates you will be locking in are higher.
By the time you add on fees to convert you are harming
yourself financially.
If I had an ajustable rate, I would keep it cause I
dont see interests going up any time within the next
1-2 years....
Just a heads up. this could svae you money and you can
spend it on your favorite hobby :). I know citi bank
is notorious for this unethical practice.
You are welcome to email me for more info and proof.
Tuan
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