Maybe you are right.what I cannot understand is why they treated same cases with different penalties? Can you answer me that?
-ltb(mike);
2003-11-3(#1445303@0)
Long story, to make it short:
penalty is based on 3 factors:
1. how many years left over
2. current posted rate for the left over number of years
3. rate you signed up.
-liuhuaiyu(harry);
2003-11-3(#1445374@0)
Thanks. Did you read my whole story? what's the difference between my neighbour's and mine: why ware there huge differences between almost same terms of the two mortgages? That's what I need to know!
-ltb(mike);
2003-11-3(#1445428@0)
I got what you show me with thanks. Can you show me how you can calculate out that someone, whose principle was less,term was shorter, should pay more panalty than another guy,whose principle was more, term was longer? Don't forget that we bought houses at the same time,financed and refinanced our mortgages in the same bank! Please read the whole article before you show me,friend.
-ltb(mike);
2003-11-3{208}(#1446486@0)
for example, both 200k , 3y 6.5% 5y 7%and 6 months later,
now 3y is 3.5% and 5y is 6.5%
so, for 3 y, the penalty is
200k * (6.5%-3.5%) * 30 month / 12 month
for 5 y, the penalty is
200K * (7% - 6.5%) * 54 month/ 12month
the 5 y one has less penalty.
-liuhuaiyu(harry);
2003-11-4{227}(#1447614@0)
the example I gave you is too extreme, just show you how it is posible.
what is the 3y rate when they told you the penalty is $2100?
is it around 5.3%?
-liuhuaiyu(harry);
2003-11-5(#1448994@0)
Sorry,I canot remember the exact rate of 3y at that time. Anyway,I cannot understood the huge differences between the penalties of the two mortgages.Thank you very much for your showing me a lot. I like the style you talk with me. Hope to talk with you in the future if you like.
-ltb(mike);
2003-11-5{130}(#1449258@0)