Worth it to refinance my home? (details inside)
We're on a 5-year fixed mortgage with BMO at 2.99% amortized to 25 years. We've got 2 years left and about 340K left to pay. After that, we'd be down to 20 years, if that matters. We pay every 2 weeks. I think they call it Accelerated 2 Weeks or something. Currently, BMO is advertising 2 types of "Smart Mortgages" ; a 2.49% one and a 2.51% one with APR. I don't know what APR means. Brokers outside of the big banks offer even lower rates.
1. Considering these factors, would it make sense to break the mortgage contract to refinance? Would we save money or actually lose some in the process?
2. Should I consider the BMO mortgage solutions or look for a broker instead? Plenty of websites show smaller brokers' rates.
3. What kind of penalties would I be looking at if I did break the mortgage contract?
4. What does APR mean and would you choose the APR BMO rate which is slightly lower or the non-APR lower one, if sticking with BMO?
5. "Lump Sum" is mentioned on websites for smaller brokers. Does that mean I'm required to pay one of (say) 10% of the total value left to pay on the house to join them?
Thanks for your knowledge, guys. It would be best to hear advice from experienced people who don't have anything to gain from us to get a clearer picture of what's in our family's best interests.