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What Mortgage Term Length is Best For You? The Short and Long of It

Posted onDecember 23/2019By

Your mortgage term is fundamentally about relationships, both long and short. As with all liaisons, the choice will always depend on individual motives. Although mortgage interest rates seem to receive the highest contemplation concerning home financing products, mortgage terms also manipulate your savings. Appreciating that both are connected is crucial. Before committing to either a long-term or short-term length loan, it’s imperative to analyze both plans to ascertain, which is superior for you. Defining a Term The common fallacy is that a mortgage term stipulates the total length of the mortgage, precisely the amount of time it will take to pay your mortgage in full. On the contrary, that is what is called a mortgage amortization. “Term” actually refers to an agreement that establishes the interest rate, along with other inclusive mortgage features, over a set period. Mortgage terms may range from six months to ten years. Note, however, that…

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The Superior Choice: Fixed or Variable Interest Rate?

Posted onDecember 16/2019By

In terms of interest rates, a seemingly mere fraction of a percent can impact your savings over the life of your mortgage loan. For this reason, it’s pivotal to be conscious that your choices will ultimately affect your interest rate. Being able to govern interest rates is not feasible, so being informed is fundamental in determining what’s typically the benchmark as far as the interest percent. Preparing and comparing will conclusively lead you to a choice decision. As a borrower, the interest is an additional payment on top of the principal amount of your loan. It is an annual percentage rate which is either fixed or variable; ultimately, the choice will have a tremendous impact on your mortgage loan. For that reason, it is imperative to discern the variants of the two classifications of interest rates. This knowledge is vital to your overall comprehension of how interest rates function, consequently…

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Reverse Mortgages: Ten Reasons Why Using Home Equity is Not a Choice Plan

Posted onDecember 09/2019By

Reverse mortgages exalted as a new source of income for baby boomers are far from a choice retirement plan, despite a guaranteed income. It is a financial obligation in which a homeowner relinquishes equity in their home to a reverse mortgage provider, in exchange for regular cash payments, usually to bolster retirement income. Undeniably, taking out a reverse mortgage seems logical for retirees who are house-rich, but cash or cash-flow poor. As with all financial tools, it’s imperative that you are aware there are numerous reasons to justify why using home equity is not a choice plan. The following ten reasons should compel you to analyze your options and the potential consequences of a reverse mortgage. 1. Your loan is capped Your reverse mortgage will be capped at 55 percent of the value of your house. It is dependent on your age, your stake in equity, the appraisal and location…

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Reverse Mortgages: The Facts Up Front

Posted onDecember 02/2019By

The Deliberation of Reverse Mortgages The theme of reverse mortgages seems to be on-trend, with the media honing in on the fact that ample retirement savings are a significant concern for so many Canadian seniors as they slowly but systematically deplete their income sources. Options are finite, and typically your home becomes the only source of equity to be leveraged. Most notably, selling one’s property has been the universal solution, although seldom a gratifying concession. Reverse mortgages offer a certain appeal to homeowners as a secure solution, granting them access to their home equity and converting it into tax-free cash. In Canada, beginning from the age of 55, funds from your reverse mortgage may be utilized as you see fit. You may aspire to achieve something you covet, such as world travel and home renovations, or to alleviate debt, assist in healthcare expenses, and supplement your income, virtually developing your…

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