Finding the right financing package can sometimes be complicated. Your local Real Estate Representative can help you find the financing program that fits your needs.
Most Popular Mortgages
Fixed Rate Mortgage
You can be secure that the interest rate will remain stable and unchanging for the life of the loan. This is a great loan if you are planning on staying in your home for many years. When rates go up your payment stays the same. When rates go down, you may consider refinancing if rates go down enough to be feasible.
5/1 Adjustable Rate Mortgage (ARM)
The monthly payment is typically lower for the first five years and is at a fixed interest rate. After the fifth year the interest rate adjusts either up or down depending on the market each year after that. This is a good option if you are planning on staying in your home for only a few years before moving or if you plan on refinancing to a fixed rate when interest rates are lower.
Interest Only Mortgage
For the first three to ten years the interest rate and payment stay the same and you pay only the interest each month.
» View the Mortgage Comparison Chart
Terms
This is length of time agreed upon in the mortgage contract, type of loan, interest rate (is it a fixed rate or will it fluctuate during the time of the loan) and any other mortgage conditions on the loan. Ask your lender to work out the different loan scenarios for you in writing so you can compare your options carefully. What is the payment for a fixed 15 year loan versus a 30 year fixed loan? What is the difference in payment with an adjustable rate loan? Don't be afraid to ask your lender, you want to be well informed and educated when investing in property.
Amortization
This is the amount of time in which the debt will be repaid. Most mortgages are amortized anywhere from 15 to 30 year periods. The longer the length of the loan, the lower your payments, but the interest paid is higher.
Payments can be paid monthly, biweekly or weekly. Talk to your lender about what is more comfortable for you. The more payments you make during the year, the lower the overall interest you pay during the life of the loan.
Mortgage Approval
It is important to discuss your finance options with a lender before starting your property search. Upon deciding on a property to purchase, you will be asked to provide a pre-qualification or mortgage approval letter from the lender showing you qualify financially to purchase the property. Your real estate agent will attach the letter to the contract when submitting the offer to purchase to the seller.
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