Whether you’re buying your first or fifth home – feel like a rookie or mortgage master, today’s fast-paced real estate market coupled with low interest rates have many thinking, “what have we got to lose?” The answer is a lot! Save yourself time, money and heartache by asking these 5 questions when you’re applying for financing.
1. What payment options are offered?
For example, biweekly or accelerated payments will allow you to pay down your mortgage faster.
2. What prepayment privileges are available?
Ask about lump sum payments and what percentage? Are they only available on the anniversary date? How about increased payments – what percentage? Is there a double up feature?
3. Is my mortgage portable?
Specifically, can you transfer your mortgage balance to a new property without penalties?
4. How does the qualifying process work?
Will the lender blend and extend to a new term (qualifying with contract rate) or will you have to blend to your existing term (qualifying with benchmark rate)? This is very important because if the contract rate today is 2.79% but the benchmark rate is 4.64%, you may have to break the mortgage and pay penalties!
5. How is my prepayment penalty calculated?
This is a very important discussion to have. The bank’s calculation method is much higher than non-bank lenders and the calculations themselves differ between lenders.
At the end of the day, you want to know you’re making the right decision based on ALL the available information. Leave nothing to chance. That’s why having a professional Mortgage Broker, like Tracy Irwin, in your corner is the best option for peace of mind today AND tomorrow. Contact Tracy today!
It’s a Family Affair…
Cherry Blossom Run
Tracy ran the 10 mile (16km) Cherry Blossom Run in Washington D.C. on April 3rd featuring 50 mph winds (80k) wind gusts. According to Tracy, “the 20,000 people running must have created a human shield; I didn’t find the winds all that bad despite the dire warnings. The route along the Potomac River was beautiful and included some especially hardy cherry blossom trees still holding onto their blooms”. Tracy ran with husband, Sid and sister-in-law Vanessa.
A beautiful picture of the newest addition to Tracy’s family, granddaughter Lyla.
Perfect in every way.