What is a Reverse Mortgage?
We hear the term and we hear it often, but many of us have a hard time understanding exactly what it is. What is a reverse mortgage? What is a reverse mortgage? A reverse mortgage is a mortgage product available to home owners 55+ years of age (all applicants on title would need to fit this age bracket in order to qualify). There must be sufficient equity in the home and not all banks will offer this product. The reverse mortgage allows you to use the equity in your home with no payment obligations. What is a reverse mortgage used … Continue Reading
Tips for Paying off Your Mortgage Quicker
The goal of every home owner is to pay the banks back with the least amount of interest paid as possible. When it comes to paying off mortgage, there are several approaches’ you can take to decrease the time in which this is done: Reduce the amortization Reducing the amortization of the loan will naturally decrease the time it takes to pay off mortgage but in order to do so, your monthly payments will increase as a direct result of that reduction Pre-payment privileges Lump Sum Many mortgages allow up to 20% to be repaid directly against the outstanding principal … Continue Reading
Things to Consider When You Compare Mortgage Rates
I could confidently say that most home owners/first time home buyers compare mortgage rates solely on the scale or the ‘lowest rate’ and neglect to factor in their long term strategy/goals. When you compare mortgage rates, you must factor in the important variables such as the length of time you plan on living there, the purpose of the purchase, the flexibility of the terms and conditions, prepayment privileges, etc. At this present moment, rates are lower than they’ve been in years, and everyone is being bombarded with advertising the major banks that gets them number crazy! If it’s not on … Continue Reading
The Pro’s and Con’s of Biweekly Mortgage Payments
To begin, let’s understand the frequency of biweekly mortgage payments in comparison to others as we’ve noticed this can sometimes be confusing: Monthly mortgage payments: 12 payments per year (on the same date each month) Biweekly mortgage payments: 26 payments per year (exactly every 14 days) Semi monthly mortgage payments: 24 payments per year (on the 15th and last day of each month) Accelerated biweekly mortgage payments: 26 payments per year based on a payment which is ½ of monthly payment (exactly every 14 days) We’ve had so many clients ask us to explain the pro’s and con’s of biweekly … Continue Reading
Mortgage Broker vs Bank: Which is a Better Fit?
The magic question for every mortgage seeker: mortgage broker vs bank… which is a better fit? As a mortgage brokerage, this blog may seem biased, but if do understand at least one thing… it’s that the major banks do not play together in the same sandbox. You can ask someone at the bank their opinion, and they’ll tell you the bank! They won’t tell you just any bank of course, just the one they work at. Likewise, each bank representative will do the same regardless of who you ask. They’re extremely competitive and extremely territorial. If one of them can’t … Continue Reading