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Yeah, as a Canadian all of this seems pretty alien to me. To get my mortgage, I went to a specific bank, signed a contract with their logo at the top, the amoun
by emilecantin 5y ago
Yeah, as a Canadian all of this seems pretty alien to me. To get my mortgage, I went to a specific bank, signed a contract with their logo at the top, the amount I owe / pay shows up in my online at that bank, and I send money every month to that same bank. If a different entity came up and told me to pay them instead, I's assume it's a scam. I'm surprised scammers in the US haven't tried that yet.
- marvin 5y agoAlso, as a Norwegian, risks related to refinancing in the case of a falling interest rate don't exist. Mortgages are floating-rate by default. If you enter a fixed interest rate contract, you are on the hook for the entire interest difference of the duration of the fixed rate contract if you terminate the contract. 10 year fixed rate contract, loan of 1 million and the rate falls from 3% to 2% on the second day of the contract -- if you terminate the contract now, you owe the bank 1% of the sum of whatever your loan balance would have been during each of the next 10 years. To be fair, you get the opposite deal if the interest rate rises.
- jjav 5y agoIn the US you can go directly to a bank to get a mortgage, but I'm not sure why one would want to since you can't comparison shop that way. Better to go to a broker who shops your loan among dozens of lenders to find the best terms. You typically end up with some entity you've never heard of (not a known bank), who will hold the loan for a month or two and then sell it off to someone else.