We just entered our 4th year of mortgage with the same bank, and was told by our friendly neighborhood banker that our mortgage rate is going to be increased by $130 per month because of the rise in interest rate. And the only way to get the lowest rate raise of $130 was to lock us in for 5 yrs. Frankly speaking, we are already paying alot per month for mortgage, and to lock in for 5 yrs, we are really very apprehensive.
As a first time owner, we were very anxious and naive when we went looking for mortgages from the bank. We went into contract with the first bank we spoke to, and who was willing to give us a home loan. Actually, we weren’t even told about our options or what ifs, that was what bothered me most. Now that there is an increase on interest and that we have to pay more each month, I wouldn’t mind looking into a poor credit re-mortgages to get a better deal on my mortgage by switching to a different lender.
Our current mortgage has a insurance in case of death but do not have mortgage protection in case of an illness or an accident or if we lost our business for reasons unexpected. This was not an option given to us at all with our present lender, therefore, if we ever look into another lender, we will be sure to ask about that, in order not to have our home repossessed and of course a peace of mind.
