GiddyGap@lemm.ee to News@lemmy.world · 5 months agoA Huge Number of Homeowners Have Mortgage Rates Too Good to Give Upwww.nytimes.comexternal-linkmessage-square132fedilinkarrow-up10arrow-down10
arrow-up10arrow-down1external-linkA Huge Number of Homeowners Have Mortgage Rates Too Good to Give Upwww.nytimes.comGiddyGap@lemm.ee to News@lemmy.world · 5 months agomessage-square132fedilink
minus-squareCaptainSpaceman@lemmy.worldlinkfedilinkarrow-up0·5 months agoIn USA, refinance happens only when consumer wants to. Usually to get a better rate or cash in on some equity I think.
minus-squareCyborganism@lemmy.calinkfedilinkarrow-up0·5 months agoIn Canada, the mortgage has to be renewed every 5 years or less depending on your contract. They’ll never let you have a 30 years mortgage on a 2% interest rate the whole time.
minus-squareramble81@lemm.eelinkfedilinkarrow-up0·5 months agoSo what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?
In USA, refinance happens only when consumer wants to. Usually to get a better rate or cash in on some equity I think.
In Canada, the mortgage has to be renewed every 5 years or less depending on your contract. They’ll never let you have a 30 years mortgage on a 2% interest rate the whole time.
So what happens if you go to renew and they’re like “screw you, 8%”, and you can’t afford that increase? Do they just foreclose your house?