Few of us spend the time and money investigating and finding the best mortgage deal to buy our house. Island Coast Mortgage
Our house is the most critical and costly buy we ever make for most of us!
We spend a lot of time and effort in finding the perfect property in the best location and with as many of the amenities as possible from our wish list, yet when it comes to finding the best deal for a mortgage, we take what’s offered instead of investigating and obtaining the best mortgage for our situation.
Given that the average homeowner can pay more interest over their mortgage’s lifespan than the original home cost, you can see why finding yourself the best deal for a mortgage now can save you tens of thousands of dollars in interest over your home loan’s 20-30 year period.
Your work can be carried out on the internet for the best mortgages or loans and repayment options currently available, thereby making the entire process much more convenient and time-efficient.
Hypothecs aren’t “One Size Fits Everything!” Hypothecs come in many different forms and you need to be aware of the different types to decide which one is the right hypothecary for your unique circumstances.
Mortgages generally fall into one of the following categories. Lenders will have variations of these basic categories, but equipped with this knowledge, you will be able to sort only the right package by choices.
Fixed rate mortgages: Mortgage with a rate of interest that stays at a specific rate for the entire mortgage / loan term. This form is about 75 percent of home mortgages. For first time buyers, a fixed rate mortgage is often considered the best value for a mortgage as you can create a stable, relatively fixed budget of household operating expenses.
ARM’s or Adjustable Rate Mortgages or Variable Rate Mortgages: A mortgage / interest-rate loan that adjusts or varies with adjustments in the rates charged on Treasury Bills or bank deposit certificates. In Canada the rates vary depending on the rates reported by the Bank of Canada regularly.
Many lenders offer various’ capping’ solutions to offset the risk associated with an adjustable rate mortgage. We also set or limit the maximum level at which the interest rate to which you are subject may be elevated for a given period. We set the limit once per year and sometimes for mortgage life.
Adjustable or flexible mortgages can be very appealing, as the rates are usually significantly lower than those for fixed mortgages. They’re an ideal tool for lenders who are attentive to rate volatility and able to’ lock in’ their mortgage when interest rates begin to climb. If you’re constantly watching the money markets, this might be the best deal for you on a mortgage.
Balloon Mortgages: A mortgage in which the object of the monthly payment is not to repay the entire loan. The final payment of the remaining balance is a large lump sum. Balloon mortgages are often only partly amortized and require redemption of a lump sum upon maturity.
It’s common US mortgage for homeowners who don’t plan to stay more than 5 or 7 years in their new home. The downside is that the interest rate is lower than a fixed rate mortgage but the drawback is that if you live in the home beyond the 5-7 year period, you’d have to secure a new loan or mortgage to pay off the balloon mortgage.