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How do I know which mortgage is right for me?

You need to understand your own goals, circumstances and budget as well as the wide range of mortgage options and the features within these mortgages. There is many considerations including pre approval, mortgage refinance, mortgage renewal, fixed mortgage rates, long or short term, open or closed mortgages and your mortgage broker would be able to offer the best advice. Your mortgage broker will get you the best mortgage rates by asking you important and prominent questions about your long-term and short-term goals and plans before a mortgage purchase. Your mortgage broker will expertly explain the types of mortgages in order to manage it comfortably by measuring your financial status against types of mortgages.

Should I get pre-approved for a mortgage before I look for a home?

Getting mortgage pre-approval is very important before you start house hunting. You do not pay for mortgage pre-approval and when you look for a house, you know it is what you can afford. When you get a mortgage pre-approval, you will know the amount you could get to buy, what your mortgage payments will be, able to lock in at current interest rates for a specific period to protect you from increased mortgage rates. If mortgage rates go down in that period, you will automatically qualify for the lowest/best mortgage rates in that period.

What is a mortgage down payment?

A mortgage down payment is the upfront payment required when you do a mortgage purchase, which is a portion of your home purchase price. This is an important step for homeowners and it is something that needs to be determined before you do house hunting and the larger your mortgage down payment is the lesser the cost of your house in the end. A conventional mortgage requires a mortgage down payment of a minimum of twenty percent of the home’s price. Speaking with your mortgage broker, he or she will be able to advice the right mortgage in order to get the lowest/best mortgage rates.

What is a fixed rate mortgage?

A fixed rate mortgage gives you more security by locking your interest rates for the complete term of your mortgage. This type of mortgage has fixed mortgage rates and you do not have to worry about fluctuating mortgage rates during the mortgage lifetime. A fixed rate mortgage is something your mortgage broker will discuss with you, as it is available through various mortgage options including convertible term, open or closed term mortgages. You will know your mortgage rates stay regular and what portion of your mortgage payment goes toward the principal and interest.

What is a variable rate mortgage?

Variable rate mortgages is the opposite of the fixed rate mortgage, as it does not give homeowners the guaranteed mortgage payment. Variable rate mortgages have its advantages and disadvantages. The interest that a homeowner pays is based on prime rates, but the advantage is that homeowners often get the lowest/best mortgage rates. When you have a variable rate mortgage your payment will stay fixed for the term, but when prime rates goes down, a larger portion of your mortgage payment will go towards the principal amount. When prime rates goes up, the payment goes towards interest costs instead.

What are the costs associated with buying a home?

There are three main costs involved in a mortgage purchase and your mortgage broker will inform you of mortgage down payment, closing costs and other expenses. The mortgage down payment is your first and foremost consideration as it is the portion that you are responsible for and conventional mortgages require a twenty percent down payment. Furthermore is the closing costs, which include insurance, property survey, home inspection, title insurance, land transfer tax and much more. This is why it is important to sit down with your mortgage broker, as a complete breakdown will ensure you the lowest/best mortgage rates while keeping your costs affordable.

Is a longer mortgage or a shorter mortgage term better for me?

New homeowners will find mortgage terms can vary and with the varied terms the mortgages rates also vary. In general, your mortgage broker will inform you that the shorter mortgage terms would have the lowest/best mortgage rate and higher terms have higher rates. Your mortgage broker will discuss with you the probability that you might want to sell your house again and suggest a short-term mortgage in this case. If you are happy with current, mortgage rates and do not expect the lowest/best mortgage rates to drop anymore, then long-term mortgages are for you.

How can I pay off my mortgage sooner?

Your mortgage broker will discuss the many mortgage options and mortgage features of each mortgage type as well as mortgage rates and how you could positively reduce the years of mortgage repayment. It is possible for a homeowner to add features such as principal mortgage prepayments, shorter amortization, accelerated mortgage payment schedules, and increased monthly mortgage payments. Your initial mortgage repayment amount will largely depend on the current mortgage rates, the purchase mortgage price, and the term and payment schedule.

How often can I refinance my mortgage?

A mortgage can be refinanced when you want to and there is not a limit on a mortgage refinance period. However, you cannot automatically refinance when you need money as you need to qualify for a mortgage refinance. In this regard, you will have to consult with your mortgage broker, as he will also mention other options such as mortgage add-on options and more.

Can consolidating my debt save me money?

Debt consolidation could save you money and you could save a substantial amount of money when you speak to your mortgage broker to find the viable options open to you. Consolidating debt such as high interest credit cards and loan with high interest rates into your mortgage will save you money as you will only pay one debt and at lower rates which would be your current mortgage rates.