I saved over $6000 from mortgage interest! -liuhuaiyu(harry) @爱德华王子岛华人论坛:爱德华王子岛枫下论坛 The Rolia Forum of PEI

枫下家园 / 住房话题 /
tor
Toronto Area

I saved over $6000 from mortgage interest! -liuhuaiyu(harry); 2003-7-29 {988} (#1308370@0)
So exiting,
I am going to sign a new mortgage this afternoon!, canceled the old last week.

Here is now I saved over $6000:
my old morgage:
240k 6% 5 years. (too high for now, signed it two years ago, not expecting rate will keep going down. but 6% is a VERY good rate 2 years ago.)
if I cancel it, the panelty will be $10100.00 !!!
it is calculated out from rate difference.

Here is the trick how I save money:
I pay down 20% of 240k without penalty.
then the cancelation penalty dropped to less than $8000.

Got a new mortgage 3 year 5.1% with 8500 cash back.
So, I saved 6% - 5.1% = 0.9% for the next 3 years!!!
that is over $6000.00 !!

hehehehe,
Feels so good.

What I learned from this:
BE VERY CAREFUL when you choose the mortgage.
Because I choosed 6% 5 years mortgage 2 years ago, I LOST over $15000 in interest and penalty in it!!

if I don't do the tricks above to cancel it, I will loss another $6000 in the next 3 years.

Experience from blood!!

首先，你的计算似乎有些问题，其次，你的罚款付得太高，估计你没和按揭银行说清楚，再其次，省回点钱是好事，似乎也没必要那么兴奋和exiting吧？ -baygirl(冰淇凌); 2003-7-29 (#1308391@0)

谢谢批评与打击,分享我的快乐吧,高兴一次容易吗! -liuhuaiyu(harry); 2003-7-29 (#1308412@0)

是是，是不容易，我只是想说你的计算不是6% - 5.1% = 0.9% ＝２１６０再乘三年那么简单。 -baygirl(冰淇凌); 2003-7-29 (#1308419@0)

哈哈,碰上行家了! 你说的对,APR小于rate,principle 在降,... 好多细节我没说,20%5万哪来的,等等. -liuhuaiyu(harry); 2003-7-29 (#1308431@0)

How did you get the saving of $6000. from 0.9% of next 3 years. Thanks. -huimin(huimin); 2003-7-29 (#1308422@0)
Never play the games with the bank, truse me, you never win. -xz730000(笑一笑，十年少); 2003-7-29 (#1308432@0)

not me play game with bank. the bank helps me save money this time. I got a very good banker. -liuhuaiyu(harry); 2003-7-29 (#1308498@0)

Bank would never help anybody if not for money. We live in the real world. -xz730000(笑一笑，十年少); 2003-7-29 (#1308528@0)

without helping me, the banker will lost me as a customer. banker alway help their long term client! -liuhuaiyu(harry); 2003-7-29 (#1308554@0)

再谈谈吧。罚款太高了。一些银行不会要罚款，如果你以前定的利率（6%）低于现在的公布利率（6.22%）。另外，三年 5。1% 的利率在现在来说很差！不知 8000cash back 相当于几的利率？ -foolish(傻蛋); 2003-7-29 (#1308433@0)

一些计算细节: -liuhuaiyu(harry); 2003-7-29 {186} (#1308454@0)
1.罚款:
6% - 5.9%(还剩3年多,银行按4年利率算差价) + 1.5% (当时7.5%post rate,银行给我1.5%discount) 换算成APR * 238000 * 37月/12月
2. 8500cash back for 238000 5.1% 3 years = 3.85% 3 years

Very simple, the money you paid down this time (48K) should bring you more than 6K in three years if you had invested on anything reasonablely. -xz730000(笑一笑，十年少); 2003-7-29 (#1308443@0)

48K是从我的credit line 里出的. 我用新mortgage付清credit line 后,省$6000.00 -liuhuaiyu(harry); 2003-7-29 (#1308459@0)

Then you borrowed more. More principal to pay back, then definitely more than 6K in the future ....yada yada yada....As I said you never win a game with bankers. -xz730000(笑一笑，十年少); 2003-7-29 (#1308488@0)

Good point. -huimin(huimin); 2003-7-29 (#1308460@0)
人家是新旧两个MORTGAGE相比较，觉得省了钱。你在讨论该多付MORTGAGE省利息还是该投资增值。两码事。 -dundas888(登达寺); 2003-7-29 (#1308494@0)

谢谢,我的帖子写的太粗,你看明白了. 谢谢帮我解释. -liuhuaiyu(harry); 2003-7-29 (#1308503@0)
如果你看明白的话, 他已经多借48K in this new mortgage. 不是吗? -xz730000(笑一笑，十年少); 2003-7-29 (#1308508@0)

哈哈。你是明白人。 -pass(funny); 2003-7-29 (#1308513@0)

I changed my mortgage rate to 4.1/3years with 0 penalty. So I think you deal is not good. -wins(wins); 2003-7-29 (#1308450@0)

No difference; He/She saved nothing this time if you read my message. I believe you did not save anything either( aroud couple of hundreds dollars, but you spent so much time involved in this whole thing). -xz730000(笑一笑，十年少); 2003-7-29 (#1308466@0)
要看你旧的mortgage是什么term. 3.85% 3 years 是基础, 高于3.85% 的是用来cash back/penalty的. (4.1%-3.85%)*3 = 0.75% 是你的cash back/penalty. -liuhuaiyu(harry); 2003-7-29 (#1308472@0)

如果你还想帮助别人，就提醒一下大家，哪个银行会有这种罚款陷阱（两个利息之差）？ -dundas888(登达寺); 2003-7-29 (#1308464@0)

所有银行. 只是利息降的不多,或mortgage所剩时间不长时,interest difference penalty很小, 所以绝大多数人面对的penalty是3个月interest. 我的case 特殊,赶上利息这两年大降. -liuhuaiyu(harry); 2003-7-29 (#1308483@0)

不是，大多数的Mortgage合同里都"明文"写好了毁约罚款2~3个月利息，好像只有两家银行会罚款差价。不同银行不一样。 -dundas888(登达寺); 2003-7-29 (#1308517@0)

谢谢! 这个消息很有帮助! 我还以为所有银行都这样呢.两年前签的时候不懂,也没想到要cancel(主要是没想到利率还会继续降这么多.) 这个mortgage让我学会了好多. -liuhuaiyu(harry); 2003-7-29 (#1308559@0)

对不起,我的帖子写的太粗,重新细化一下: -liuhuaiyu(harry); 2003-7-29 {1349} (#1308552@0)
本文发表在 rolia.net 枫下论坛Here is now I saved over $6000:
my old morgage:
247k 6% 5 years. (too high for now, signed it two years ago, not expecting rate will keep going down. but 6% is a VERY good rate 2 years ago.)
After 2 years, the priciple goes down to 238k now.
if I cancel it, the panelty will be $10100.00 !!!
it is calculated out from rate difference.

Here is the trick how I save money:
I pay down around 20% (not exactly 20%, I paid down a little less.) of 247k without penalty.
48K from credit line. I will pay it back from my new mortgage in several days.
then the cancelation penalty dropped to less than $8000, because the principle goes down to 190k
Now I own the bank:
190k in mortgage
48k in credit line
total debt: still 238k

Got a new mortgage 238k 3 year 5.1% with 8500 cash back.
190k of this new morgage goes to the old mortgage
48k goes to the credit line.
$8000 goes to the penalty.

Now my debt: 238k only in the new mortgage.
the 48k in credit line is paid back with the new mortgage.
I just use the credit line for transaction to save 20% penalty.

now the new mortgage 238k 3 years 5.1%
So, I saved 6% - 5.1% = 0.9% * 238k for the next 3 years!!!
that is over $6000.00 !!
if you convert the 0.9% to APR, it will be less , so the total saving will be ...???
some smart guy can help me to calculate it? hehe更多精彩文章及讨论，请光临枫下论坛 rolia.net

Good for you. Now i know it is possible to save some money by this way. Thank you for letting us share this info with you. -xz730000(笑一笑，十年少); 2003-7-29 (#1308576@0)
你的计算6% - 5.1% = 0.9% ＝0.9% * 238k * 3( years) = over $6000.00 saving. 似乎没那么简单. After 3 years, your old mortage and new mortage will be at the same rate. Here is a mortage calculator from RBC: -huimin(huimin); 2003-7-29 {66} (#1308623@0)
https://www.rbcroyalbank.com/cgi-bin/mortgage/mortcalc.pl
你算算.
再泼你点冷水。你的计算是完全不对的。mortgage是所谓的复利。按你的算法，好像你的238k 现在一分不还，然后在某个日子一下全还清。实际的偿还过程，本金是不断减少的，银行通常是每个月根据你本金的变化计算一次 -yangn(Raymond); 2003-7-29 {102} (#1308634@0)
虽然你好像每个月付的钱一样，可是其中本金所占的比例是越来越大的。建议你在这方面好好学习一下，提高一下。

你和huimin说的都对,$6000只是估算.细算见内: -liuhuaiyu(harry); 2003-7-29 {928} (#1308889@0)
old mortgage:
247k 6% 5y
monthly payment: $1580
at the end of 2nd year: $237838 principle,
at the end of 5th year if I don't cancel, $221896 principle

new mortgage: 23 years instead of 25 years @ 5.1%, with 8500 cash back to pay the 8000 penalty. 500 cash goes to my pocket, good.
beginning principle: $237838 (from above at the end of 2nd year).
monthly payment $1458
over pay $122/month so the monthly payment = 1580, the same as above
3 years later
principle: $215350

so what I get:
$500 cash now at the cancelation.
$221896 - $215350 = $6546 saving in principle 3 years later.
(and the payment of each month is the same, and I didn't pay any cash from my pocket. everything else is that same, just saved priciple.)

what I lost :
If I cancel the 3 year new mortgage, I need to pay back the 8500 cash back + the penalty.
so I can NOT afford to cancel the new one.
Use flexibility to change to money.

你最大的失误是又借钱来还债。 -fxid(外地民工模样的人); 2003-7-29 {509} (#1308614@0)
简单说，如果你还保持原来的利息不变，安20年还的话，你
只是在这三年里多损失1%的利息，比如你现在本金是20万，
也就是4000的利息(20*1%*2)，或大概这个样子，可是你现在
借了48000，这是什么概念，也就是说，这48000一直要背负
尽20年来还利息，48000*5%*20=48000，也就是说，因为你
多借了这48000，在20年里，你多付48000的利息，你陪了
42000的利息钱，加上你的CASH BACK，你还多付34000，
这个算法可能不精确，可是关键是说，千万不要借钱还钱，
因为你多借一块，都会最后还这一块，都会背10，20年的利息。
这点你可以让银行再算算。

不同意。没看出有啥失误。请把中间过程忽略，他原来旧MORTGAGE就欠差不多24万，现在新的MORTGAGE也欠这么多，利息比原来低了。就这么简单。 -dundas888(登达寺); 2003-7-29 {120} (#1308631@0)
至于利率是不是最好，这是另外的问题。他原来已经上了圈套，挣脱出来当然不可能拿市场上最好最低的利率，但只要比原来好就行了。

如果他借钱还了原来的本金而不是罚款，这个失误可能很小，如果增大了本金，就大大错了。 -fxid(外地民工模样的人); 2003-7-29 (#1308635@0)
还有，他千万不要用了手里的现金来付罚款，因为这个现金本来可以减小一部份本金的。减1块本金，都省15~20年利息。 -fxid(外地民工模样的人); 2003-7-29 (#1308640@0)

我的理解是：这个TRANSACTION结束时，他并没有动用自己一分钱，也没有另外欠债。本金和原来一样。利息比原来稍低。 -dundas888(登达寺); 2003-7-29 (#1308653@0)

实际上是用一个新贷款一次还清老贷款同时还有CASHBACK，所以关键看罚款的金额和CASHBACK的对比了。 -fxid(外地民工模样的人); 2003-7-29 (#1308664@0)

计算有问题 -fruitopia(绿茶); 2003-7-30 {426} (#1309592@0)
if u get a mortgage with a 5-year term w/ 6% then the total interest u should pay is about 3,9000. and if u switch to a 3-year term w/5.1% rate ,the total interest u pay is around 1,5200 but u had to plus the penalty 8,000 and the first two years interest which u paid already 2,4000.so the total for now is much more bigger than the old one .by the way , u cannot use the sample rate to calculate the interest and principle.

bank paid $8000 penalty, not me. and the $39000 interest for 5 years is not right, it is much higher. look at this post above "你和huimin说的都对,$6000只是估算.细算见内:": -liuhuaiyu(harry); 2003-7-30 {106} (#1309846@0)
Thanks for interesting with my post.
from your way of calculating and comparing, you are an professional?
http://www.rolia.net/forum/forum_showPost.php?tno=154108&pno=1308889&

oh. i see. i got some wrong number because u didn't give me the exactly loan period.25 years. the number u showed me is right. -fruitopia(绿茶); 2003-7-30 (#1310403@0)

这就是我为什么一贯强调要选浮动利率的原因。看这个固定利率的例子，费了这么大力气才有可能少赔6000元。如果早就选浮动，哪用着这个急呀。 -rollor(Rollor); 2003-7-31 (#1311931@0)

真是一针见血! 其实我跟本不是省了$6000, 而是象你说的,少赔了$6000而已! 我更喜欢一年一年的签fixed.比浮动要好些. -liuhuaiyu(harry); 2003-7-31 (#1312051@0)

@PEI

I saved over $6000 from mortgage interest!

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