With the ever increasing competition in the mortgage business among banks and other financial institutions, you can now get wider range of home mortgages with different rate plans to suit your needs.
Interest rates are important, but so is flexibility and other features. To find the right mortgage, you need to take all of its features and benefits into consideration. Things like prepayment, portability of the mortgage, allowance to skip a payment or two without being considered in default, prepayment penalties are the things you must review before signing the dotted line. Time to ask questions is before and not after, when nothing can be done and the banks will hold you to the mortgage agreement and its terms.
Here below are the common offers by the mortgage companies:
1. 1 Year Fixed Rate
2. 3 Year Fixed Rate
3. 4 Year Fixed Rate
4. 5 Year Fixed Rate
5. 5 Year Fixed Rate Green Mortgage
6. 5 Year Closed Variable Rate Mortgage
7. 7 Year Fixed Rate
8. 10 Year Fixed Rate
When we all are focused on the interest rates, banks quietly have the different compounding factor for different mortgages. Find out if the interest is compounded, monthly semi-annually or annually. For you as the borrower, annual compounding is better and will save you some money; for the banks it is the monthly that will make them richer. You should also check if the mortgages are available as Conventional or High-Ratio financing, Conventional mortgage could save you in the mortgage insurance fees.
You may like to pay your mortgage weekly, biweekly or monthly. Check if the option of paying mortgage weekly, biweekly, semi-monthly or monthly is available if not either negotiate or move to the institution that offers.
Some would allow you to increase your mortgage payment to help you Pay down your mortgage early. This can save you a lot of money over the life of the mortgage.
Some mortgages allow you pay down your principal, even in a closed mortgage with no penalty. Others may allow you to do that provided you pay an administrative fee. If so find out how much the fees will be.
Asking questions, may be uncomfortable and intimidating especially when you are borrowing money but it is something you must do; it will save you money.
Interest rates are important, but so is flexibility and other features. To find the right mortgage, you need to take all of its features and benefits into consideration. Things like prepayment, portability of the mortgage, allowance to skip a payment or two without being considered in default, prepayment penalties are the things you must review before signing the dotted line. Time to ask questions is before and not after, when nothing can be done and the banks will hold you to the mortgage agreement and its terms.
Here below are the common offers by the mortgage companies:
1. 1 Year Fixed Rate
2. 3 Year Fixed Rate
3. 4 Year Fixed Rate
4. 5 Year Fixed Rate
5. 5 Year Fixed Rate Green Mortgage
6. 5 Year Closed Variable Rate Mortgage
7. 7 Year Fixed Rate
8. 10 Year Fixed Rate
When we all are focused on the interest rates, banks quietly have the different compounding factor for different mortgages. Find out if the interest is compounded, monthly semi-annually or annually. For you as the borrower, annual compounding is better and will save you some money; for the banks it is the monthly that will make them richer. You should also check if the mortgages are available as Conventional or High-Ratio financing, Conventional mortgage could save you in the mortgage insurance fees.
You may like to pay your mortgage weekly, biweekly or monthly. Check if the option of paying mortgage weekly, biweekly, semi-monthly or monthly is available if not either negotiate or move to the institution that offers.
Some would allow you to increase your mortgage payment to help you Pay down your mortgage early. This can save you a lot of money over the life of the mortgage.
Some mortgages allow you pay down your principal, even in a closed mortgage with no penalty. Others may allow you to do that provided you pay an administrative fee. If so find out how much the fees will be.
Asking questions, may be uncomfortable and intimidating especially when you are borrowing money but it is something you must do; it will save you money.
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