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The Beginner's Mortgage Guide

Aug 20, 2008
What is the amortization? And how can I decrease this? Your amortization is the total length of time it will take you to pay off your mortgage. Often when you first get a mortgage it is amortized over 25 years. However, your amortization period will not stay constant because different borrowing terms at each renewal vary the amount of interest charged over your amortization period. The length of time to pay off your mortgage will be determined by the interest charged, the loan amount, payment amount and payment frequency.The mortgage rate stays the same for the whole term and the mortgage payments are consistent during the term of the mortgage. The mortgage rate varies with fluctuations in the bank prime rate. As a result, mortgage payments may vary during the term of the mortgage.

What is a jumbo mortgage? A mortgage larger than the maximum eligible for purchase by the two Federal agencies, Fannie Mae and Freddie Mac, currently all loans over $359,650.There is no fee on conventional mortgages as I receive their fees from the financial institutions.

Are there fees for your services? There is no fee on conventional mortgages as I receive their fees from the financial institutions. However in some circumstances lender/broker fees may apply.You may find links to all the major mortgage lenders or the best mortgage interest rates on the internet A home inspection prior to purchasing a home or condominium can bring peace of mind when you sign the sales contract. Knowing what to expect both inside and out will help you make an informed decision about the value of the home and the future upkeep.

How does a mortgage broker get paid? MOST Financial Institutions pay a referral fee to the Broker for doing all the legwork and credit research for them ( the job of a loans officer). Since this service is valuable, a commission is paid and in these cases Home Mortgage Canada does not charge a fee. In some circumstances, a client's financial requirements, credit, or job situation is more complicated and in these cases fees payable to the Mortgage Broker and/or the Lender may be total costs for the same interest rate, loan amount, and loan program. Ask if the total costs include discount points, origination fee, title company fees, escrow company fees, and county recording fees. The lowest APR may not be the lowest total cost loan for your personal financial plans.

What is the difference between an Open and Closed mortgage? Open mortgages can generally be paid off at any time without penalty. They are suited to homeowners who have some uncertainty in your lives, are planning to sell in the near future or those who want the flexibility to make large, lump-sum payments before the end of the term. Compared to open a closed mortgage offers little to no privileges in paying off your mortgage early. You can not pay off your mortgage without attracting prepayment penalties, from the lender.A pre-approved mortgage provides you with a interest rate guarantee from the lender for a specific period of time (usually 90-120 days) and also gives you the maximum amount of mortgage that you qualify for. This is the first step in the Home Buying process.

What is the minimum down payment that I need to purchase a home? To qualify for discounted rates, the minimum down payment is 5% of your home purchase price. 0% down options are available, however at a higher interest rate, and additional CMHC premiums.Yes, even purchasers with 5% down can buy a home and make improvements to it. For high-ratio financing CMHC and GENWORTH insured mortgages are available to cover the purchase price as well a renovations the purchaser would like to make to the property.
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