Tuesday, May 27, 2008

Flexible Mortgages

A flexible mortgage is a concept which made its way to the mortgage sector in 1995. Prior to that, the concept was quite popular in Australian mortgage market and is also referred to as the Australian Mortgage. Since the induction, a flexible mortgage as a notion has received a probing reaction, with no definite patronage. But despite this, the schema didn't fade; rather it prevailed and established its roots deep into the mortgage market. This mortgage performance can be better understood, in consonance with the montreal mortgage terms.

Flexible mortgages Montreal refer to mortgage deals wherein, the homebuyer has considerable advanced flexibility to repay. In this package, there are no fixed interest charges and also there is the added advantage to underpay, overpay or enjoy longish payment breaks. These leisurely features, when compared with the fixed mortgage plan, may seem like the ideal mortgage account, but a cautious approach is needed because of two key negative aspects. The first negative aspect is that the flexibility comes with a high fee schedule, especially with the case of regular underpayments and payment breaks. The second negative aspect is the definite requirement of excellent financial control for this mortgage account to efficiently work.

Therefore, if you are trying to compare flexible mortgages montreal, first be clearly aware of the above mentioned clauses. In case there are any doubts on either of the two, it is suggested that the comparison be broadened to include all fixed mortgage offers, because the latter would offer stability in an easy to follow pattern.

The Requirement Set

If you are definitely clear about the suitability of a flexible mortgage with reference to your personal circumstances, then the compare flexible mortgages exercise should begin with the creation of an input catalogue, listing such items as the loan to value figure.

The task commences with evaluation of the property. The calculated property value will help derive the loan to value figure, without which the comparison is not possible. As evident the ratio also requires another figure i.e. the loan, which corresponds to the second item in the list. After these two values, the next calculation should be with respect to earnings and conception of a personal circumstantial chart. This chart should clarify the best possible definition of your perceived requirements during the mortgage period, thus helping you work out the final mortgage cost, taking into account needed underpayments, overpayments or payment holidays. Another important entry to the list, while you compare flexible mortgages, relates to the applicable interest type. The interest rate could be flexible, fixed, capped, varied or Bank of Canada rate based. And then there are specific deal terms, for instance a few mortgages could allow cash back and more.

With this list ready you could either feed the data into an online calculator /comparison chart, or refer to a professional broker. The latter is advised, as a mortgage is a very important concept, with serious bearing on the overall lifestyle, thus demanding thorough scrutiny. Moreover, the professional broker would take into account all relevant personal factors before they would compare flexible montreal mortgages with you.

Wednesday, May 21, 2008

Preparations for Mortgage Loan


There are a few simple steps that you will want to take when getting ready to apply for a home Montreal mortgage, whether this is you are a first time home buyer or an experienced home buyer. They include; credit preparation, acquiring the services of a Montreal loan specialist (especially important if you are a first time home buyer), establishing a relationship with a real estate lawyer, researching title (Title company) insurance, finding a property appraiser.

Credit preparation

You will want to get a recent copy of all three of the major credit bureau reports and your scores before applying for a home mortgage loan. Your credit score can make many thousands of dollars of difference in the cost of your home. You will want to go over each report line by line to make sure it is accurate. Then you will want to see what you can do to improve your score. Decreasing the total amount of debt owed is one of your most important steps to take. Along with decreasing debt load, making sure that your payments are in on time, insuring that you do not miss the dead line is a small step that will help in acquiring the better loan rates. It is very important to make at least the minimum payment due on all outstanding creditors. This is essential in improving and maintaining a good credit score.

Loan Specialist

A loan specialist is important for understanding the types of home loans that are available to you. Their expertise in finding good rates that you are eligible for can not be overstated. The specialist should inform you of not only the types of home mortgage loan that is available in the immediate market but also what documentation is required for each type of loan or lender. This specialist needs to be someone who will take the time to understand your needs and goals. They should be open to the many different creative financing techniques that can save you time and money.

Real estate lawyer and title insurance

A lawyer is required to insure that there are no clauses in the loan home mortgage loan that could go against you. They will be the one to insure that the proper documentation and paperwork says what you need it to say to protect your interests. This is a step you do not want to try and save money by avoiding. Title insurance is the legal forum that keeps your property cleared from unscrupulous or missing documentation that might mean that someone else could make a claim against your property causing you court and lawyer fees along with the real possibility of losing all that you had invested.

Property appraisal

A property appraisal is a requirement for a home mortgage loan. This accurately establishes the value of the home. Most lenders insist on an accurate and up to date property appraisal before determining the amount of the loan that you can obtain. You also should plan on investing in a property inspection for your protection regarding the condition of the property.

Finding the best information and resources possible should be a definite part of the preparation for your home loan. You can find accurate hints and tips at Multi-Prets Montreal mortgage specialist or Quebec Mortgage Loan.

Sunday, May 18, 2008

Fannie Mae changes Declining markets policy

Fannie Mae announced that they will no longer require an extra 5% down payment for purchases in "Declining Markets" beginning June 1.

The real question is will this change help. The answer is Yes for some borrowers, and not at all for others. There are 2 factors above and beyond Fannie Mae's basic guidance that will continue to hinder homebuyers looking to put less money down. Mortgage Insurers have increased minimum Fico requirements for all loans, especially those over 90% loan to value. Please note that FHA loans do not have Fico minimums at this point. The other factor effecting the quality of the Fannie Mae loan is the "risk premiums" associated with loans over 90% Loan to value. Fannie Mae loans have higher risk premiums (IE higher rates) for these loans. Once again, FHA does not penalize borrowers for opting to put the standard 3% down payment. The rate is the same for 90%, 95% or 97% FHA loans. Fannie Mae rates may vary as much as 1% on these amounts. Now that's alot of money. You can see why FHA loans are quickly becoming the most popular loans in the USA again.

Give us a call to see if our FHA Direct Loans are right for you. Call Brian Skaar at 760-752-4480. Or visit us online at

Friday, May 9, 2008

Your mortgage and Dollar Weakness

Before exploring the outlook for the US dollar in 2008, it is important to understand that decoupling in the global economy was a primary factor for the dollar’s weakness in 2007. As US growth slowed, growth in the rest of the world remained resilient thanks to the demand from countries like China, India and the Middle East.

When the US began to
ease interest rates in August, many central banks in countries such like Australia continued to raise rates since growth was steady enough for them to focus on tackling inflation. In fact, up until the Bank of England’s and Bank of Canada’s interest rate cut in December, the US was the only central bank to cut interest rates in 2007. This decoupling of growth was one of the main factors that led to the out performance of the Euro, Australian, New Zealand and Canadian dollars, against the US dollar last year.

As we enter 2008, we are beginning to see recoupling in the global economy. In second half of last year, the expansion in the UK and Canada( Mortgage rates ) began to slow materially as economic data weakened, indicating that these countries were no longer resilient to weaker US growth. The ripple effects of the US subprime crisis has impacted many countries, especially the UK, who has relied on housing, finance and the public sector for growth over the past few years.

Chinks in the armor are also beginning to show in the Eurozone despite the central bank’s persistently hawkish monetary policy stance. If growth slows even further in the US or the other countries, the central banks that have been reluctant to ease rates last year may be forced to do so. The UK for example has already cut rates and they are expected to again in 2008. These are where the surprise elements lie for the currency market because the Federal Reserve has already cut interest rates by 100bp this past year.
Another rate cut from them will not be much of a surprise, but if the Eurozone begins to cut interest rates as well, it would mark a significant shift in monetary policy, which in turn could result in a major shift to the outlook for the currency.

Thursday, May 8, 2008

Best Mortgage Rate

Buying a home is an expensive endeavor so getting the best possible mortgage rate should be one of your main priorities. By deciding to get the best mortgage rate in Montreal possible you will be making a positive decision to help you for many years to come. However, just deciding to get the best Canadian mortgage rate available is not going to get you the best mortgage rate available. Instead, you will need to learn the tips and tricks for negotiating with your mortgage lender in order to receive the best possible mortgage rate for your personal situation.

Mortgage Rate Tip #1
Your mortgage rate might be low in your mind, but you must take the origination fee into account as well because this can increase your APR. Lenders frequently charge 1%, but you can always negotiate the mortgage rate origination fee lower. Also, if the origination fee is much higher than 1% you need to either negotiate it down, or find another lender with a more favorable overall mortgage rate.

Mortgage Rate Tip #2 Lock in the Rate
When negotiating your mortgage rate, make sure your lender is prepared to lock in your rate for at least 30-60 days. This way you will be guaranteed a particular rate even if rates skyrocket the next day. Another not trick many individuals are not aware of is to include a clause that also will allow you to take a lower rate if rates fall during this period. This is a great mortgage rate tip because you get your mortgage rate locked in so it can’t go any higher, but if the average mortgage rate goes lower you receive the lower rate.

Mortgage Rate Tip #3 Fight
If the mortgage rate drops significantly and you have already signed a deal locking in a particular mortgage rate and don’t have a clause that ensures you will receive the lower rate, then you need to fight. You simply need to call your lender and say that while you signed the lock in agreement you want the lower rate. This will take some negotiatingBusiness Management Articles, but your lender wants you business and might be willing to negotiate the mortgage rate with you.

Saturday, May 3, 2008

Flexible Mortagage Rate

Homebuyers have several loan options. Hence, purchasing a new home has never been easier. Individuals who cannot afford a down payment or closing costs may take advantage of loan programs that offer assistance. Furthermore, those hoping to obtain a low rate mortgage may consider a loan with an adjustable rate. Because of the initial low cost of adjustable rate mortgages, monthly mortgage payments are also lower. However, low rate mortgages are short term. To avoid an interest rate hike, homeowners should refinance before rates begin to increase.

Advantages of Adjustable Rate Mortgages

There are several advantages to accepting an adjustable mortgage. For starters, a low rate mortgage allows buyers to purchase pricier homes, while maintaining an affordable monthly payment. Moreover, because of record low rates, homebuyers who obtain an adjustable rate mortgage can enjoy falling rates without refinancing their mortgage. Thus, they avoid closing costs and other fees.

Adjustable rate mortgages are also ideal for individuals who plan on moving in a few years. Some people enjoy the stability of living in one place for many years. In this case, refinancing for a fixed rate is a wise choice. However, if you prefer the flexibility of moving every three to five years, you will save money with an adjustable rate.

Pitfalls of Adjustable Rate Mortgages Montreal

While adjustable rates offer many attractive features, one major drawback is that low rates are temporary. If interest rates continue to fall, you will not be subjected to the dangers of these loans. However, if rates begin to climb, so will your mortgage payment. Homebuyers who cannot afford an increased mortgage are at risk of losing their home. Thus, if your goal is to remain in your current home for many years, refinancing for a fixed rate will offer predictable mortgage payments.

How Soon Can You Refinance a Mortgage?

Fortunately, home mortgage loans can be refinanced whenever you like. Some lenders suggest allowing the loan to mature at least 12 months. However, if you detect a change in market trends, refinancing shortly after purchasing your home is a smart maneuver. Those contemplating refinancing must be prepared to pay additional closing fees. Moreover, contact your current lender and inquire of prepayment penalties.