need advice on my mortgage?

Question

i have 20 years left on my mortgage,i was wondering if the mortgage lender i'm with would extend my mortgage and add another 5 years onto it to make my monthly repayments lower.does anyone know if this can be done?

Answer 1

I'm a lawyer not a mortgage broker. I know however that you will need to refinance the entire mortgage either with your existing lender or by applying to a different lender. Try your local bank. They will see if you qualify for a 25 or 30-year fixed mortgage which will lower your payments.

Your existing lender will not just extend your mortgage to 25 years without a competely new mortgage refinance. Good luck!!!

Answer 2

the only way to do that would be to refinance. If you only looking for 5 years (and your currently at 20) you will hard pressed to find a 25 year mortgage. typical mortgages come in 10-15-20-30 year loans. I often to loans that are stretch out to 40 years and 50 years (crazy i know).

what i would recommend is to simply refi to a 30 year.
(with low or NO closing cost-adding to your principle would be counter productive depending on your goals)

then i would calculate what it would cost in additional principle payments added to your monthly payments.
try using this mortgage calculator to figure out your mortgage and how much you would need to add...

http://www.bankrate.com/brm/mortgage-calculator.asp

on a 150k mortgage over 30 year, adding 210 to your payment would let you pay off your home in about 25 years.

though i think you will find extendingyour payment a mere 5 years really isnt going to be very sexy lower payment. a few dollars i would think.

with the higher interest rates now a days and the cost of the transaction fee i would stick with what you got.

just because i sell exotic loans doesnt mean i think its right for everyone. i like the stable old fashioned loans for myself. you got 10 years into it. in five more years 50% of your mortgage payment will go going towards principle...this is where you really start knocking down your balance. do a bi monthly payment, shave off another 1-2 years for nothin'. Hang in there if you can.

Answer 3

As long as you have a repayment mortgage so you have made some headway into the capital borrowed

You would have to do a whole new remortgage, so you could shop around rather than staying with same one

Techinally you should be borrowing a lesser amount then you wanted 5 years ago ( if you have a repayment mortgage )

Answer 4

It can be done but the lender will probably re-mortgage you to do it which will cost something. The best thing to do is call and see if they will extend the term of your mortgage under it's current terms.

Answer 5

Yes you can , everyone does it!

just keep re-mortgaging, if you want to have lower repayments, bear in mind that you will end up paying MORE interest,

Also try switching lenders, i bet you will get a Much Better Deal!

good luck

Answer 6

generally yes.

Depending on where you are. Here is Australia we have 30 yr terms with the induction of 40 year terms some months back.
As long as you good conduct on the loan and you have the age on you side to repay the loan in that time I cant see why not... Lender in Australia cannot discriminate against age but they can discriminate against ability to repay....

Answer 7

Yep, deffo!!

I used to work for the Halifax years and years ago and we did it all the time! It used to be called a term extension.

Give 'em a ring and make an appointment tomorrow.

Best of luck!

Answer 8

Yes it can be done. Depends on your mortgage provider though. If you current provider doesn't let you do this then you may be able to change.

Answer 9

Yes