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How to Get a Mortgage in Canada - Mortgage Math #1 with Ratehub.ca

 

Bad credit mortgage loans allow the borrower to get their loans even with a bad credit report. So how does bad credit mortgage loans work? Well, usually when you apply for a loan, you would have to undergo a pre-qualifying process. This process involves digging into your finances, your income, assets and liabilities, the whole gamut. If the loan is worth $1,000,000, then the difference per month grows to $1,000, a substantial amount that can be put to better use. The savvy investor can make it so that his investment using the money he gets from the per month difference growth of an interest-only mortgage can increase within a short period, thus leveraging incomes to build assets. This setback of having a 15-year fixed rate mortgage may restrict home buyers to smaller houses than they might be able to afford with longer-term loans. There are also other factors to consider when choosing which type of fixed rate mortgage you want to take. Keep in mind that you can actually do a prepayment for your fixed rate mortgage, that way, the principal amount may be significantly reduced each month. Adjustable Rate Home Mortgage Rates Home mortgage rates are sure to be affected more if you have an adjustable rate mortgage. This is because adjustable rate home mortgage rates depend largely on the changes in federal rates. Also, adjustable rate home mortgage rates are short-term interest rates like Treasury bill rates. But this low interest rate in adjustable rate home mortgages is only for a short period of time. After about a year, the new interest rate of an adjustable rate home mortgage will either rise or fall, depending on the movement of the lending company's prime rate. Knowing whether or not an adjustable rate home mortgage is right for you depends on your income status and the type of adjustable rate home mortgage payment you plan to make. Knowing what to look for in a mortgage is therefore important for a successful mortgage rate comparison. When you find a product you like, read the product details before making a commitment. And also, a successful mortgage rate comparison means looking through the literature you get from investment firms. 

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