I think that’s an excellent idea, and again, I wish you the best of luck. If there’s anything you think I might be able to do to help, please say so. I’d be happy to.

All very good advice, although I wish I had the option to do any of what you suggest. Extra money is something I am just not lucky enough to encounter. I have no idea how most people manage to buy houses at current prices, but I can assure you – I am not one of them!

You’re right in thinking I haven’t paid much on the principle. I barely came in with a down payment.
I still feel as though I should be cautious about this and plan ahead so that I can make good of what I did manage to get myself now, rather than wait until later and suffer for it.

I don’t know the details of your mortgage either, but if you’re less than 5 years in with a 40-year amort it’s unlikely that you’ve paid much, if anything, down on the principle. If I’m wrong about this, forgive my ignorance. Those longer terms result in drastically higher interest costs if you take the entire term to pay it off. Over 40 years, interest costs alone can cost you twice the amount of the property itself. However, if you need to go with the 40 year amortization for current cash flow issues, I would suggest that you take any extra money during the year and put it down on the mortgage as that will help decrease the interest burden in the long term. This will also help out when it’s time to refinance that loan.

Best of luck to you.

I have a few more years to go with the current rate. I’m just not sure what I can do or where else I can go at this point. What I’m somewhat safe in knowing is apparently my house has increased in value, so the penalty fees at the very least can be absorbed.

Agree with you completely… in the long run. In the long run we’re all dead as the saying goes. Interest rates got into record low territory back in 2001 and have bounced around ultra low territory ever since. Thats 8 years so far. Incidentally I was saying what you are saying now back in 2001.

Japan has had central bank rates around 0.25% since mid 90′s with no end in sight.

Having said all that I am embarassed to say I do think rates will rise However this is just my ‘opinion’, in reality I know I could be dead wrong for another decade.

Appreciate the visit and the comment. Thanks.

Alex,

I agree with everything Bookrat said. Isn’t your rate locked in for another four years or so?

Rates *will* go up. Everything goes in cycles, and nothing is going to stay at historical lows forever, no matter how much damage it causes. This is why bankruptcies too go in cycles, where those businesses and individuals who overextended themselves are called to account, and those who were conservative have the opportunity to scoop up those peoples’ assets at bankruptcy prices. (No offense intended; I’m dealing in abstracts, where I’m sure the situation is much more real to you.)

The only question is ‘when’ and that’s what all the pundits and prognosticators are trying to predict. Remember, though, that even the BoC didn’t promise to keep 0% rates past this summer…

If you’re thinking you may need to get out, then doing so ahead of the wave is probably not a bad idea. What are the details of your mortgage? (I think you have posted the information before, so I don’t believe I’m asking for anything you’re not willing to reveal… but if you consider it personal/private then please pardon my effrontery.)

At the same time though if rates were to affect my payments, I’d find myself in a less than favorable position. I’d much rather be preemptive about it than find out that I just waited through the last chance to avoid the losses.

I guess realistically I really can’t see interest rates going up, it would be devastating to our already paper thin economy.

This doesn’t sound like you.

I suppose if you believe we’re in for a big collapse it might be the right thing to do but do you want to become a speculator? You’ve said many times that home ownership shouldn’t just be about the money. Are you in a position where you might need to sell it in the next couple of years?

Personally, I love my home and I’m not prepared to give it up in a sell high, buy low kind of attempt.

That makes me wonder if I should sell my house now, take whatever tiny amount over the top I can make (or nothing!) and wait…