# Mortgage renewal??



## Bender (Jan 8, 2017)

My mortgage came up for renewal here on the 5th of Jan 17 my payment came out on the 6th Jan. Now up to the 5th I was locked in at 3% but my payment came out at 7%. That's 200$ more by weekly that being said how can they charge interest on the days I was locked in as apposed to just the one day at 7%.? In other words I just paid 7% intrest for 14 day for wich 12 of those days were locked in at 3% 
The new rate should apply on the 5th and up. Now I'm no mathematician and there were no other charges. So my figures add up to me paying intrest as of December 22. 

All other matters are resolved.


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## Just a Guy (Mar 27, 2012)

You were probably given notice that your mortgage was coming due a while ago. They usually even give you several renewal options. If you didn't bother to fill out the form with your selection (usually a bad idea since you can get better rates just by walking into a bank), they probably auto renewed you to an open mortgage which has the highest interest rate.

Mortgages also are usually charged after the time period going backwards, but not always. So your last payment is actually for the period prior. There may also be a "service charge" for renewing (setting up) the new mortgage as the old one has expired.

All this could have been avoided had you just gone into the bank before it expired. Of course, if you go in now, the bank will probably give you a credit if you complain...then again they may not, they don't have to.

Of course you are getting off easy technically, the day your mortgage expires, if you haven't arranged new lending terms, you are obliged to pay off the loan in full. The fact that they continue to lend you money is their choice, not your right.


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## Bender (Jan 8, 2017)

Yes completely understandable. But to back up in to a previous mortgage with the interest of the new one is well...not right On any level. I have been dealing with this back for 15 years with my mortgage Faithfully. I did go in and renew today. My appointment was this coming Monday as for some reason I had a later date stuck in my head. And yes I had all the papers filled out as always. No there were no other charges and I'm sure they could have charged me for something or another. In any case I know what they can do. It's did they do something they shouldn't have. But thank you for your quick response as well as the info.


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## mordko (Jan 23, 2016)

7% does not seem right. Don't think there is anything like this on the market, even without discounts. Talk to the bank and ask about the charge.


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## Bender (Jan 8, 2017)

Yes it's a 6 month fixed open.


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## redsgomarching (Mar 6, 2016)

If you do not renew your mortgage or give any direction to the bank generally in your mortgage contract it will automatically renew at 6 month open rate (this is how it worked when I worked at a big 5 bank). 

You aren't very clear on your situation. Be more concise and clear with your situation its very hard to give input when we have so little info to work with as well. 
The best thing to do is call your mortgage provider - they would have an answer for you.


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## redsgomarching (Mar 6, 2016)

Bender said:


> Yes completely understandable. But to back up in to a previous mortgage with the interest of the new one is well...not right On any level. I have been dealing with this back for 15 years with my mortgage Faithfully. I did go in and renew today. My appointment was this coming Monday as for some reason I had a later date stuck in my head. And yes I had all the papers filled out as always. No there were no other charges and I'm sure they could have charged me for something or another. In any case I know what they can do. It's did they do something they shouldn't have. But thank you for your quick response as well as the info.


how can you say its something they do but shouldnt have? what would you prefer them to do if they reach out to somebody who has not shown any interest in discussing their mortgage renewal? would you rather them renewed you into another fixed term? 
Own up to your own mistakes - it will help you financially


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## Just a Guy (Mar 27, 2012)

Personally I find people don't learn too well if there are no consequences. The "pain" usually means people don't screw up the next time. It's the price of education. 

Of course, the next time the bank could begins foreclosure proceeding since you defaulted on your loan (contract says payment is due in full at renewal) if you'd prefer something more "fair" and proper according to the agreement you signed. 

You are technically right, on every level the bank should have demanded their money from you immediately instead of letting you keep the place financed. 

P.S. This has happened to me in the past. I had two properties that needed to renew on the same day at the same bank. The person I was dealing with only told me about one of them which we did. I found out a month later (after a lot of confusion, since I thought I'd just renewed it) that I had a second one in arrears when I went in to make a deposit. 30
Minutes later I had it resolved, but I now keep better track of my renewal dates and I've got a lot of properties to keep track of.


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## Bender (Jan 8, 2017)

Just a Guy said:


> Personally I find people don't learn too well if there are no consequences. The "pain" usually means people don't screw up the next time. It's the price of education.
> 
> Of course, the next time the bank could begins foreclosure proceeding since you defaulted on your loan (contract says payment is due in full at renewal) if you'd prefer something more "fair" and proper according to the agreement you signed.
> 
> ...


As I had said my mortgage was up on the 5th my by weekly payment was due on the 6th where did my 3% rate go for the 13 days prior to the 6th? Or the twelve days prior to the 5th that being the day the intrest rate changed. The new intrest rate can only start from the day the rate applied not any sooner. Correct? I hope that clears things up. Everything else is taken care of this is the only mater I'm trying to get figured out. I don't owe so I'm not in default.


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## Just a Guy (Mar 27, 2012)

It would be best to actually read the terms of your mortgage instead of asking an anonymous message board to try and figure out what's going on. There's a good chance you're mistaken about the date your mortgage actually expired as compared to when you're next mortgage had to be in place by.

Fortunately for you, all your answers, even if the bank is in the wrong, are in that original document which none of us can see, but that you should have to read. Of course, failing that, you could also ask the bank who could also give you the correct answer as opposed to any of us who don't have any real information.


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## Bender (Jan 8, 2017)

I tried to explain a little better in my first post


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## Just a Guy (Mar 27, 2012)

Yes, but the explaination is missing a lot of important details and only gives your side of the story which you admit you don't understand. Understanding comes from knowledge. 

I've tried to tell you how to get the answers you want and why we can't give you the answers you're looking for...yet you don't seem to understand that. 

Find your documents or talk to the bank it's the only way you can get a definitive answer, anything else here would just be a best guess.


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## Bender (Jan 8, 2017)

Bender said:


> My mortgage came up for renewal here on the 5th of Jan 17 my payment came out on the 6th Jan. Now up to the 5th I was locked in at 3% but my payment came out at 7%. That's 200$ more by weekly that being said how can they charge interest on the days I was locked in as apposed to just the one day at 7%.? In other words I just paid 7% intrest for 14 day for wich 12 of those days were locked in at 3%
> The new rate should apply on the 5th and up. Now I'm no mathematician and there were no other charges. So my figures add up to me paying intrest as of December 22.
> 
> All other matters are resolved.


Its a strait forward mortgage 5 year fixed 3.690% 25 year with a payment of 500+- renewal date 5th payment MADE on the 6th payment = 640+- the ONLY thing I'm not understanding is that I did indeed pay intrest from the 22 of dec. I have all of my papers in front of me. I'm not on any one side. I m thankful for your help. Understanding the mortgage is not the problem understanding how and why an intrest rate can come into affect prior the renewal date has me stumped.


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## Bender (Jan 8, 2017)

A fixed intrest rate #1 = ??? A by weekly payment #2 = ???. a maturing date #3 =jan5th. Does the fixed rate apply up to but not exceeding Jan 5th. That's the question.


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## Mukhang pera (Feb 26, 2016)

Just a Guy said:


> It would be best to actually read the terms of your mortgage instead of asking an anonymous message board to try and figure out what's going on.


That's why I stayed out of this one when I first saw Bender's initial post, with no replies yet. Now there's a multitude of replies, but not a whole lot of light shed on the matter.

We still do not know what type of a lender we are talking about, we have not seen the mortgage terms and, in truth, we are working in a vacuum. 

Bender, why not start first by asking the mortgagee how it has come up with the numbers it has? I suspect that JAG is right, that there would have been some advance notice in writing about the mortgage coming up for renewal, what options would be available and what would happen if you did nothing. 

Not trying to give you a hard time here, but I think your queries could be better directed elsewhere at present. Depending on the response you get, you might come back here for some thoughts on the response and the way forward.


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## redsgomarching (Mar 6, 2016)

Bender said:


> Its a strait forward mortgage 5 year fixed 3.690% 25 year with a payment of 500+- renewal date 5th payment MADE on the 6th payment = 640+- the ONLY thing I'm not understanding is that I did indeed pay intrest from the 22 of dec. I have all of my papers in front of me. I'm not on any one side. I m thankful for your help. Understanding the mortgage is not the problem understanding how and why an intrest rate can come into affect prior the renewal date has me stumped.


What is your payment schedule on the mortgage?
Also, it seems to me your mortgage renewed on the 5th and because you didn't tell the bank what you wanted it auto renewed into a 6.9% open mortgage and the payment that came out would have reflected the payment for that. 

Like it has been posted previously, go to your lender and ask. And next time you receive documents regarding mortgage renewal - pay attention!


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## Just a Guy (Mar 27, 2012)

There also may have been fees and penalties that increased your costs but not your actual interest rate. For example you may have had a $X00 fee for registering the new open mortgage, or to discharge the old one, or as a fee for not having renewed on time...making your first payment seem like 7% when, in reality, it's not.

Not to say banks don't make mistakes, they do, but we on this board have no idea. Each transaction has a myriad of possible explainations, I just don't understand your reluctance to actually ask your lender and ind out from someone who could really answer.


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## Bender (Jan 8, 2017)

In the past I have found that I have overlooked many details. Never been one to dispute a fault due to having faith that they know what there doing. This time it just does not work out its not a odd amount it equals the amount to the cent at 7% exactly.


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## Bender (Jan 8, 2017)

I'm not reluctant to. My appointment with them Is on Monday. I just need to know that I'm on the right track.


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## Bender (Jan 8, 2017)

Thank you Mukhang I have read the terms. I have posted a new thread on a more to the point question. I try always to trust my gut. When something is troubleing me I tend to follow up and most of the time I'm not wrong being my fault or someone else's I find the fault. With that I learn.


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