Mortgage Products and Options for your Unique Needs.

The resources that are available to me by being a team member with TMG The Mortgage Group Inc. are many, Having access to over 50 lenders is a powerful advantage I bring to my clients. This means you can be sure I'm presenting you with competitive mortgage rates and options that are tailored to your specific needs.

While there are several factors to consider when making a mortgage decision including selecting the right mortgage professional and what you can afford, there are essentially four key elements to consider when making a mortgage product decision:

1. Term - The contracted length of time you pay a specific rate on the mortgage.
This is where mortgage amortization comes in which is the number of years over which the repayment of your mortgage loan is calculated.

2. Rate - The interest rate on the mortgage which is either fixed or variable. A fixed rate means the same interest rate and payment guaranteed for the lenght of your mortgage and a variable rate means your interest rate fluctuates with changes in the prime rate.

3. Term Type - Specifies the conditions associated with paying out the mortgage as in open or closed.

4. Flexibility - Defines the ability to repay additional amounts thereby reducing your outstanding principal throughout the term of the mortgage; either ongoing with regular payments or lump sum bonus payments.

Options

 

1. An Open Mortgage - Allows you the flexibility to pay off some or the entire mortgage at any time, without penalty. Interest rates are usually higher and are tied to the bank prime.

2. A Fixed Mortgage - Offers you the security of locking in your interest rate for the term of your mortgage, so you know exactly how much principal and interest you will be paying on the mortgage during the term. Terms range from 6 months to 10 years. Fixed rate mortgages offer some form of pre-payment, from 10% to 25% of the original mortgage balance each year, depending on the lender. If you wish to pay off your mortgage in full, there will be a penalty of either 3 months simple interest or an interest rate differential(IRD). The benefit of this mortgage is the rate is lower than an open mortgage, making it a more popular option if you have no plans to pre-pay in full during the term you select.

3. Variable Rate Mortgage - Allows you to take advantage of today's low prime rate. Most variable rate mortgages are set below prime, terms range from 1-5 years. Payments vary depending on the product or lender you choose. In some cases you can fix your payments for up to 5 years, but the interest rate will fluctuate as the bank prime rate changes. In other cases your monthly payments will fluctuate depending on how many times the prime rate changes during your term.

4. Secured Line of Credit - Allows you to access the equity in your home whenever you choose. Rates are tied to prime, usually slightly above prime. Required payment on the balance is interest only, making it a good choice where cash flow may be important. Lower interest rates compared to a unsecured line of credit. You may have a secured line of credit and a mortgage, if you have good equity in your home.

5. 2nd Mortgage - Typically refer's to a secured loan (or mortgage) that is subordinate to another loan against the property.

6.Private Mortgage - In this instance you don't borrow from the bank, you borrow from another person or business.

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