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“With the advent of the Internet getting the best rates on financial services and products is easy. Here we show you how.” Taylor Arnold

How To Get The Best

Mortgage Rate

If you're purchasing a home, this may be the largest commitment you've ever made in your life. That's why It is important not to take the first lender offer you receive. Shop around and compare prices before making a final decision. These are some of the key questions to be asking during the selection process. What type of loan should I get? For the most part, homeowners have two mortgage rate varieties to select from, adjustable rate mortgages and fixed rate mortgages. Fixed rate mortgages allow the homeowner to remain locked into a steady interest rate for the entirety of their loan. By agreeing to a fixed rate, you guarantee a consistent division between the portion of your monthly payment that goes toward interest and the portion that goes toward the principal. On the flip side, the interest paid on an adjustable rate mortgage fluctuates as the loan progresses. Typically, an adjustable rate guarantees a lower introductory rate for the first 1-10 years. After this period, your rate will rise. This makes adjustable rates a considerable gamble. While you enjoy a lesser rate during the initial period, there is a chance that your payments could rise to a level that is not feasible to your budget. Loans are usually paid over the course of 30 years, but some homeowners opt for a 15 or 20 year plan. During these shorter periods, the interest rate is much lower, but monthly payments are substantially higher. Consider what your financial future holds carefully before choosing a type of loan. How much should I save for a down payment? The less money you have for a down payment, the higher the interest rate you will pay. While several lenders allow homeowners to make a purchase with just 5 percent of the purchase price, it is strongly recommended to pay at least 20 percent. A low down payment usually requires purchasing mortgage insurance, adding to the total cost of the house. Make the highest down payment possible, while preserving your future flexibility. What else should I know? Lenders impose time limits for more favorable interest rates. Known as lock periods, it is imperative that you close before they expire. Failure to do so often results in a higher interest rate. You may qualify for certain programs that can enable you to obtain a lesser mortgage rate. There are VA loans for families with a military background, FHA loans for first time homeowners that are more forgiving of poor credit scores, and USDA loans for those who live in rural areas. Closing fees make up at least 3 percent of your total price, and many lenders also include processing and administration fees. When shopping around, compare these fees from each lender. Be sure to include credit unions during your search. Credit union do not operate for profit and can often have lower rates than your local bank. Compare their prices against the banks. Taylor Arnold, CEO

News Brief

Paying down your mortgage faster. It's one of those boilerplate suggestions that financial advisers love to make to their clients.  After all, throwing extra money at the biggest debt most Canadians have can result in big interest savings and being mortgage-free years sooner. So why isn't everyone doing that? www.cbc.ca
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How To Get The

Best Mortgage

Rate

If you're purchasing a home, this may be the largest commitment you've ever made in your life. That's why It is important not to take the first lender offer you receive. Shop around and compare prices before making a final decision. These are some of the key questions to be asking during the selection process. What type of loan should I get? For the most part, homeowners have two mortgage rate varieties to select from, adjustable rate mortgages and fixed rate mortgages. Fixed rate mortgages allow the homeowner to remain locked into a steady interest rate for the entirety of their loan. By agreeing to a fixed rate, you guarantee a consistent division between the portion of your monthly payment that goes toward interest and the portion that goes toward the principal. On the flip side, the interest paid on an adjustable rate mortgage fluctuates as the loan progresses. Typically, an adjustable rate guarantees a lower introductory rate for the first 1-10 years. After this period, your rate will rise. This makes adjustable rates a considerable gamble. While you enjoy a lesser rate during the initial period, there is a chance that your payments could rise to a level that is not feasible to your budget. Loans are usually paid over the course of 30 years, but some homeowners opt for a 15 or 20 year plan. During these shorter periods, the interest rate is much lower, but monthly payments are substantially higher. Consider what your financial future holds carefully before choosing a type of loan. How much should I save for a down payment? The less money you have for a down payment, the higher the interest rate you will pay. While several lenders allow homeowners to make a purchase with just 5 percent of the purchase price, it is strongly recommended to pay at least 20 percent. A low down payment usually requires purchasing mortgage insurance, adding to the total cost of the house. Make the highest down payment possible, while preserving your future flexibility. What else should I know? Lenders impose time limits for more favorable interest rates. Known as lock periods, it is imperative that you close before they expire. Failure to do so often results in a higher interest rate. You may qualify for certain programs that can enable you to obtain a lesser mortgage rate. There are VA loans for families with a military background, FHA loans for first time homeowners that are more forgiving of poor credit scores, and USDA loans for those who live in rural areas. Closing fees make up at least 3 percent of your total price, and many lenders also include processing and administration fees. When shopping around, compare these fees from each lender. Be sure to include credit unions during your search. Credit union do not operate for profit and can often have lower rates than your local bank. Compare their prices against the banks. Taylor Arnold, CEO

News Brief

Paying down your mortgage faster. It's one of those boilerplate suggestions that financial advisers love to make to their clients.  After all, throwing extra money at the biggest debt most Canadians have can result in big interest savings and being mortgage-free years sooner. So why isn't everyone doing that? www.cbc.ca
More Info More Info