Do you have an idea that 6 out of 10 consumers usually break their mortgage within three years of their five years term? This means that more than half of the people break their mortgage within the three years that have five years of plan longevity. Do you know why and what are the implications for the same? As the number of individuals breaking their mortgage due to a low-interest rate, it is better to know its implications and what will happen, if you choose to do the same.
Apart from the pandemic that happened in the last year, there are so many other reasons why the people generally break the mortgage within the three years of their 5-years plan. Some of the most common reasons include-
- Sale or buying of a new house without having any portable mortgage
- Relationship changes
- Having equity or refinancing
- You are having any health issues that making you break the mortgage.
No matter what is the reason for breaking the mortgage, you should take help from an experienced broker who provides mortgage services in Kelowna or any other locations and can help you decide when to break the mortgage and balance the calculation.
One of the most important concerns of the individuals behind breaking the mortgage is the low-interest rates. They are meeting with their mortgage broker to determine whether it will be suitable for them to break the mortgage with low-interest rates. In most cases, it certainly makes sense and helps people save a lot of money in the process. However, the broker will suggest and advise various possibilities behind breaking the mortgage and allow the individual to make the right decision.
Having the instability of the rates and constant rise and fall of the rates, many people think whether to keep with the mortgage or break it in the process. As we all know that all the mortgages are not created equal, each mortgage should be looked by the mortgage broker in Kelowna, and he will suggest when to break it or not. It is better to discuss the broker’s details, find out what the penalty amount, you should be, and what you are comfortable to pay.