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.
When is it a good idea to consider breaking my closed mortgage and pay the penalty? If the improved rate change will absorb any prepayment penalty over the next 5 years then more than likely it will be worth it. Check with me to review your situation, sometimes I can find additional incentives or deals that will reimburse some or all of your prepayment penalties. If you switch and keep your mortgage loan amount the same there are usually no legal fees involved - just a simple 'no fee' switch with the new lender.Be very careful! Some of the gimmicks used to entice you to take a mortgage at an institution may seem very appealing but the long term effect could be costly. A 3% cash back may seem great on closing, but a 1% discount in your rate may save you considerable more over the 5 years. It is important to look at the numbers.
Why do I need a pre-approval and how do I get one? 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. The pre-approval is a calculation based on the information that you provide to the lender and generally will be subject to certain standard conditions.Yes, but it depends on the circumstances surrounding your bankruptcy as to when you would be eligible and what products are available to you.
Do I have to pay a penalty if I break my mortgage term and what will it be? No, if you transfer from one lender to another at your renewal date there will not be any penalties. If you switch before your maturity or renewal date there may be an IRD or 3 month interest penalty. It is important to consult with me to determine whether or not this will work for you. A new lender will often assist with incentives to lure you over to them.Many lenders allow you to make a limp sum payment, usually 15-20% of the original principal balance each year. In addition, many lenders also include a ?double up your payment option or allow you to increase your payment up to 15% each year of the term.
What can I do if I have a variable interest rate and interest rates start to increase? Most variable mortgages give you the right to convert to a fixed rate at any time. If you think the interest rise is not just a short-term fluctuation but will be a long-term trend then you may want to consider locking into a fixed rate. There is usually no charge for this but you should consult me to ensure that you are getting the best rate possible.soon as we get your application, we assign a dedicated Customer Services Associate to your case, backed up by a 'buddy' in case they are ill or away. This means you have a named contact and someone who is familiar with your case to call on. Customer Services Associate will follow your application through from start to finish and tackle any problems that arise on the way.YOUR lending institution will only advise you on their own product. You could visit every institution out there, one by one if you had time..
