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- Buying a home (8)
- Credit score and rating (3)
- Mortgage & Rates (5)
- Mortgage Refinance (3)
- Mortgage Renewal (3)
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Mortgage Blog
03
Nov
2011
2011
Refinancing can help you accomplish your financial goals by providing you with the means to reduce the amount of interest that you pay over the term of the loan and/or by reducing your payment to increase your monthly cash flow. Determining if this is the right time for you to finance is a big financial decision, and you’ll want to make sure that you carefully consider your options. The first step you will want to take is to start doing some research on the options that are available. You should compare interest rates, loan terms as well as incentives to determine what type of agreement best suits your needs. As with any mortgage, you need to be especially concerned with the rate of interest. Even a very small fraction of a percent can results in thousands of dollars being lost …
03
Nov
2011
2011
Securing equity in your home offers options for consolidating your debt that will save you money on interest and may even increase your cash flow. Reducing debt is always a smart decision, especially if you have large amounts of unsecured or high-interest debt. Fortunately, having equity in your home can allow you to consolidate or restructure your debt through a home-equity loan or through a second mortgage. With the second mortgage option, you are able to use up to 90% of your home’s current market value to secure either another mortgage. The amount you are able to borrow for a second mortgage is tied to the amount of equity that you currently possess. If, for instance, you have 45% equity you can generally borrow as much as 40% of that equity. (Note: generally, you will not be able to borrow …
03
Nov
2011
2011
If you are considering refinancing, you need to contemplate all your options before you can make a sound financial decision. The amount of money that you should consider borrowing is going to be based in part on what type of refinancing you are considering. There are four primary options to consider –cash out/cash back refinancing, securing a fixed-rate low interest loan, or moving to a shorter-term or longer-term loan. The cash out/cash back option will allow you to refinance for more than the amount that you currently owe on your mortgage. The amount of the difference is then changed into cash that you can you use for additional purchases, living expenses, etc. For people who are planning on staying in their current for home for an extended period (a minimum of five years), securing a fixed-rate low interest loan may …
03
Nov
2011
2011
There are many reasons why your score may not be as high as you expected or where you would like it to be to get the best interest rate. To understand why your score is low you’ll need to get a copy of your credit report from your local credit bureau. Credit bureaus are normally listed in the yellow pages, and a request for the report will take two to three weeks to process. Once you have received the report, you’ll need to review it to determine what is pulling down your credit ranking. The number one thing you’ll want to look for are any accounts that have late payments, collections, liens or charge offs. These are called derogatory accounts and each account can reduce your credit score by fifty or more points. Be sure that any charge-offs or collections …
03
Nov
2011
2011
Some people may find that their credit rating needs improvement if they are going to lock in a loan at an affordable interest rate. In this instance, you can help improve your credit score by: Correcting any errors or misinformation that is showing up on your credit report. Paying all your bills on time. Cutting up or putting away your credit cards so you can focus on repaying debt rather than incurring it. Consolidating your loans and credit card debt into one larger loan. Avoiding going over the limit on your credit card. A high balance will have a greater impact on your credit score. Restricting the number of applications for credit that you make. Too many inquiries into your credit with a short time may have a negative impact on your credit score. Contacting your lenders and make inquiring …
03
Nov
2011
2011
Your credit rating is a reflection of the amount of money you have borrowed from various creditors as well as your repayment history. Having a good well-established credit rating, or at least fair one, is essential to securing a mortgage loan. Your credit rating score is kept by the credit bureau and reflects loans, payments, etc., that you have made during the past seven years. Both positive and negative information is recorded on your credit report, so if you want to qualify for a loan you need to be sure to build a good credit history. There are a few simple rules you need to follow if you want to protect your credit rating: Pay your bills on time. Limit what you borrow to what you can afford and need. Loans need to be repaid on time and quickly. Review …
03
Nov
2011
2011
If you are ready to purchase a new home, one of the first things you want to do know is how much am I qualified to borrow. Lenders have restrictions on the amount of money that a lender can borrow that are based on the borrower’s income and current debt. GDSR: Gross Debt Service Ratio and TDSR: Total Debt Service Ratio To determine the amount you are able to borrow a lender will take into account your gross household income, your down payment and your mortgage interest rate. In addition, lenders will also consider your existing assets and liabilities. The rules governing these two factors – Gross Debt Service Ratio (GDSR) and Total Debt Service Ratio (TDSR) — are overseen by Canada Mortgage and Housing Corporation (CMHC). CMHC is Canada’s national housing agency and Canada’s premier provider of mortgage loan …
03
Nov
2011
2011
Waterfront and mountain properties can make great getaway points and can also be a good investment. Programs are now available which enable Canadians to purchase a vacation home with as little as 5% down and still maintain a very attractive monthly payment. Depending on the intended use and location, some vacation/second home programs offer loans up to $700,000. Please note that most of these programs are not structured for investment, rental pool or timeshares, so rental income will not be included in the qualification process. In addition, there may be additional restrictions on living units, etc., depending on the program qualifications. One of the more desirable aspects of these types of programs is that the property restrictions, again, depending on the use, are greatly restricted. This allows the inclusion of cabins, cottages and other vacation properties that may be usable …
03
Nov
2011
2011
If you are fortunate enough to have the assets and wherewithal that purchasing an investment property is a possibility, there are many opportunities available to you; however, when making the decision to make this type of investment, you should carefully consider the real estate market where you are looking to buy. Local markets can vary greatly in terms of price, and desirability and you want to make sure you know what you are getting into before you invest. Most gains in this area will be a modest 5-10%, but overtime, even these modest gains will net a fair healthy profit. Most investment buyers desire to put down as small a down payment as possible, but, if you a carrying a large mortgage and property values fall, you could end up carrying a mortgage that is more than what the property …
03
Nov
2011
2011
Life requires changes and perhaps you are in a situation where your existing home no longer suits your family, your lifestyle or your wallet. Purchasing your second home can be a crucial step to long-term prosperity. As you know, a home can be a wonderful investment that provides enormous financial gains as well as additional benefits, and a good home purchase can truly provide a savings plan that you simply cannot get when you are renting. Whether purchasing your second home means buying a bigger house, acquiring a condominium or simply moving to a new area, as a seasoned home buyer you know the importance of making the right choices now to save you money in the future. As time has gone on, the value of your home has probably gone up, and this gives you access to equity that …
