Interest Only Mortgage

Mortgage “stores” are a Hit With Homebuyers

Question: “What’s the biggest financial investment most Canadians will ever make?”

Okay, that may have been an easy one if you read the headline of this column. For most Canadians, their home is their biggest investment – and their most powerful financial tool.

It’s odd – given the importance of the mortgage decision – that many homebuyers will spend much more time deciding on which mutual funds they should invest in… or even which sofa to buy… than on which mortgage will best meet their needs.

Times are changing though. Mortgage options are exploding, and Canadians have begun to demand – and receive – better rates, more flexible products and more personal service than ever before. And to get a better look at their growing range of options, more homebuyers than ever are going to a mortgage “store” – and to the professional mortgage brokers who run them.

The Ontario mortgage store is a symbol of just how much the mortgage industry has changed since those days when you simply walked into your local bank to apply for a mortgage. Today, one in three first-time Canadian homebuyers choose to work with a mortgage broker, and those numbers are climbing. It’s estimated that in the not-so-distant future, up to 50% of all Canadian mortgages may go through a mortgage broker for their financing needs. Our American neighbours are far ahead of us; almost 70% of all U.S. residential mortgages are now arranged through a mortgage broker.

Here in Canada, homebuyers are demanding choice – and they’ve been beating a path to the door of independent mortgage brokers to get it. Happily, that path is becoming shorter and more traveled; with attractive and inviting storefront offices, many independent mortgage brokers are now setting up “Main Street” offices… just like the banks.

It’s hard not to get excited about the options available through a mortgage store. To begin, consider that many different institutions lend money for mortgages: banks, trust companies, credit unions, pension funds, insurance companies, finance companies, etc. At a mortgage store – like those run by many independent consultants at Mortgage Intelligence, Canada’s premier player in the mortgage broker industry, homebuyers (through their mortgage broker) can access mortgage rates and information from a huge, varied group of lenders, including traditional banks, of course. The mortgage broker doesn’t represent any specific lending institution, but works to find a tailored mortgage solution. And they have information on the growing list of specialized mortgages that now cater to niche markets like the self-employed, or homeowners looking for a recreational or investment properties, for example.

For many Canadians, the family home has been their best-performing investment in the last several years. It’s a reminder that a Ontairo mortgage is an important financial tool – and access to a broad range of lending institutions is a critical advantage. After all, a quarter-point difference on your mortgage rate can add up to many thousands of dollars over the life of your mortgage.

Ontairo mortgage storefront offices are popping up in towns and cities all across Canada. For your own financial well being, they’re definitely worth a browse!

ASB hikes floating mortgage rate
ASB has become the first bank to hike its floating mortgage rate after the Reserve Bank of New Zealand raised the official cash rate by 25 basis points to 3 percent on July 29. read more
Read more on Otago Daily Times

Understanding Jumbo Mortgages

A jumbo mortgages is a home loan that exceeds the limits set by Fannie

Mae and Freddie Mac.

How are jumbo loans different?

What differentiates jumbo mortgage loans is the loan amount. At present, loan amounts that are higher than 7,000 are usually deemed jumbo mortgages. This determination is made by comparing industry standards for average housing loans as governed by the two biggest secondary mortgage lenders, Fannie Mae and Freddie Mac.

Fannie Mae and Freddie Mac set industry standards for ‘conforming loans’; Home loans beyond those maximums are regarded as jumbo mortgages. These two agencies cap the dollar figure for loans that they will buy (that’s where the 7,000 figure comes from). Larger loan amounts are funded by other investors such as banks and insurance companies. Note that the dollar figure set to qualify jumbo mortgages differs by locale, so the limit is higher in Hawaii and Alaska (and in some other states). In the majority of the U.S., jumbo mortgages are those larger than 7K.

Available Terms – 15 Year Fixed, 30 Year Fixed, or Variable 30 Year

Jumbo Mortgage

The terms for jumbo mortgages vary similarly to other types of housing loans. Buyers can choose between variable rates, like 3/1 or 5/1 ARMs, for a 15-30 year jumbo mortgage, or a 15 or 30 year fixed jumbo mortgagerate.

Whether a 15 or 30 year fixed jumbo mortgage or an adjustable rate is best for you will depend on your plans and situation.

A 30 year fixed jumbo mortgage is better for those whole plan to own the home for a very long time. With this type of mortgage, the rate will not go up but it will never go down, either – it stays the same for the life of the loan. This is good because the payment is predictable, and cannot rise sharply if interest rates do. On the downside, the 30 year fixed jumbo mortgage rate is higher since lenders know they can never charge more than the original rate.

The lowest jumbo mortgage rate is usually an adjustable 30 year jumbo mortgage rate. Lenders understand their potential to benefit from increases in rates over time, so they are willing to lend at a lower rate in the beginning. Although, the lower rate won’t last. A variable 30 year jumbo mortgage rate will be fixed for 3 to 5 years, and then will adjust annually according to an index. Even small increases could mean significantly larger monthly mortgage payments.

Going with an adjustable 30 year jumbo mortgage rate works well when a buyer plans to move within the 3 to 5 year fixed period. For a buyer more concerned with smaller initial payments, or who will likely refinance in the near future, the variable 30 year jumbo mortgage rate is better than the 30 year fixed jumbo mortgage. Why pay the higher fixed rate when the buyer knows this isn’t their long-term plan?

All jumbo mortgage products – 15 year, variable 30 year, or the 30 year fixed jumbo mortgage – have their benefits. A trustworthy mortgage lender with experience financing jumbo mortgages is a buyer’s best resource for determining which product is right for them.

Searching for Colorado Online Mortgage Quotes

Going on the internet is a great way to start a search for Colorado mortgage rates, especially if you want a true mortgage quote from a Denver mortgage company.

Getting a Colorado online mortgage quote is a practical answer for borrowers who are looking for a Denver mortgage company and has many built-in advantages.

The Ease of Getting A Colorado Online Mortgage Quote

Online, it’s easy to apply with a Colorado or Denver mortgage company. Colorado online mortgage quote applications will take borrowers only minutes to fill out when they

have their information ready. With an online application, there is no time on hold. Instead, you’ll get a call back with loan options and Colorado mortgage rates in just a short time. The process is made to save a borrower lots of time. Borrowers will have the ability to find out exactly what a Denver mortgage company needs, so there is no time wasted with a lender waiting for the right information needed to give a true mortgage quote.

Colorado Online Mortgage Rates Help A Borrower Get A True Mortgage Quote,

Colorado online mortgage quote providers give a better quote because they have a complete and accurate profile from a lender, which assists in getting a true mortgage quote. When a lender can see exactly what is needed to make a specific and precise quote for an individual Colorado mortgage rate. With all of the information, a borrower and lender can get a true mortgage quote.

Why does that make a difference? When customers contact a potential Denver mortgage company, they are looking typically at one thing — the rate. But Colorado mortgage rates are different for different customers. No two are ever the same. So a Denver mortgage company giving a flat rate is impossible. There is no way to guarantee to  rate without having information like the amount of the loan, the price, the credit and debt status. With all of this information ahead of time, like with an online application, a Denver mortgage

company can prepare a Colorado online mortgage quote based on the detailed facts, not assumptions.

What to Watch Out For When Shopping for Colorado Online Mortgage Rates

Getting an Colorado online mortgage quote doesn’t dismiss person-to-person communication. Instead, it is a tool for accuracy and a faster way to get an accurate quote. A borrower must still communicate with a live Denver mortgage company associate. There is still a need to look over all of the information carefully to ensure there is the best overall Colorado online mortgage quote for the borrower, with not only the Colorado mortgage rate, but closing costs and other fees. A borrower should also make sure that the lender is a Denver mortgage company with the knowledge of Colorado real estate and not just an out-of-state company with out-of-state contacts.

No matter who a borrower chooses or how they start the process, they will need to put the company they ultimately pick to the test and ensure they will get a true mortgage quote and a flexible product.