mortgage solution: Mortgage pre-payment- How does it work? - 10/07/11 05:21 PM
TIP…..most mortgages have prepayment options and with a little planning a homeowner can use the prepayment to reduce their mortgage penalty when selling..
· An early payout penalty can be very costly (it’s the greater of a 3 month interest penalty or the Interest Rate Differential IRD); but there is a way to help our clients save money on this penalty.
· If porting or assumption aren’t options, the homeowner can save by ensuring they have a principal prepayment applied on closing day.
· Policies vary by lender but in most cases, the payout date and regular mortgage payment date must match.
· The lender … (0 comments)
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mortgage solution: Summer Break! The real estate slowdown... - 06/30/11 02:58 PM
Despite the fact that many buyers take a small pause in their search during the summer months, this is a very good time to arrange for a mortgage preapproval or refresh an expired rate hold.
Rates continue to be very low and a 120 day hold arranged today won’t expire until the end of October. If you have any unique financing situations, either due to the type of property or borrower’s financial history; please let me know. I work with many different lenders and they will assist in finding you a solution! Recently….
· Business for self client purchasing an investment property … (1 comments)
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mortgage solution: Understanding Bridge Loans - 06/30/11 08:25 AM
Many homeowners who are buying a new property and selling their existing home want a few days or weeks between the closing days. In most cases, they will require bridge financing. Here's how bridge financing works:
· The lender who is providing the mortgage financing for the new purchase will also provide the bridge financing
· The lender will require a firm sale otherwise they will not bridge the financing
· Most lenders prefer bridge loans to be for a period of under 30 days
· Fees vary by lender: some do not charge a processing fee, others can charge up … (0 comments)
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mortgage solution: History of Canadian Prime Rate since 2007 - 03/30/11 01:30 PM
Bank of Canada interest rate announcement occurs 8 times a year.
History of prime rate since July 2007 provided by Scotia Mortgage;
Date: Rate:
July 2007 to Nov 2007 6.25%
Dec 2007 6.00%
Jan 2008 to Feb 2008 5.75%
March 2008 5.25%
April 2008 to Sept 2008 4.75%
Oct 2008 to Nov 2008 4.00%
Dec 2008 3.50%
Jan 2009 to Feb 2009 3.00%
Mar 2009 2.50%
April 2009 to May 2010 2.25%
June 2010 2.50%
July 2010 to Aug 2010 2.75%
Sept 2010 to Mar 2011 3.00%
The next Bank of Canada interest rate announcement dates;
April 12, 2011
May … (0 comments)
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mortgage solution: Canadian Mortgage Rates for Mar 23-2011 - 03/23/11 12:15 PM
Did you know a 35 year amortization is still available?
Although the government made changes to mortgage lending - effective March 18th - these changes are for high ratio (insured) mortgages. With respect to conventional mortgages, financial institutions each reviewed their policies regarding maximum amortization periods.
The 35 year amortization is available with many prime mortgage lenders if the borrower has 20% equity in the property. The flexibility of an extended amortization is very important for some borrowers....for example, if they need to keep payments lower initially due to spending on renovations or perhaps reduced income due to maternity leave or … (0 comments)
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mortgage solution: zero downpayment? - 05/21/10 09:52 AM
From speaking to my mortgage advisors, did you know buyers can purchase with a zero down payment?
· Some lenders offer a cash back program allowing the buyer to borrower 95% of the purchase price/appraised value and to receive 5% cash back on closing. Only a few lenders allow the cash back portion to be applied to the purchase price. Of course, there are pros & cons to a ‘zero down' purchase and with a cash back offering, the buyer is paying a higher rate of interest.....usually the bank's posted rate applies (today's rate: 6.10%).
· ‘Flex down' is the … (0 comments)
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