Do not be afraid to negotiate interest rates and mortgage terms with different lenders. They are offering you a product and talking to more than one lender helps you to make an informed decision.
What type of mortgage is best for you?
- Fixed rate mortgages: Your interest rate is locked in for a specific period called a term. Your payments stay the same for the mortgage's term so you will not pay more if interest rates increase over time.
- Variable rate mortgages: Rate of interest you pay may change if rates go up or down.
- Conventional mortgages: Require a down payment of more than 20% of the property's value. You are not required to get mortgage mortgage default insurance with a conventional mortgage.
- Closed mortgages: The mortgage cannot be paid off early without paying a prepayment charge.
- Open mortgages: A mortgage that can be paid off at any time during the term, without having to pay charge. Ther interest rate for an open mortgage may be higher than for a closed mortgage with the same term.
What mortgage features are best for you?
- Portable mortgages: If you sell your existing home, you can transfer your mortgage to you new home while keeping your existing interest rate. You may be able to avoid prepayment charges by porting your mortgage.
- Prepayment privileges: You can make lump-sum prepayments or increase your monthly payments without having to pay a charge. This can help you pay off your mortgage quicker and save on interest charges.
How often can you make your payments?
- By switching from monthly payments t accelerated weekly or biweekly payments, you can pay off your mortgage faster. Explore your options for mortgage payments and see how much interest you could save by using FCAC's Mortgage Calculator Tool at: Mortgage Calculator Tool
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