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What are Cash Back Mortgages?

Posted onJune 19/2015By

When it comes to choosing a mortgage, there are many possibilities. A cash back mortgage is often recommended to first-time homebuyers because it gives you exactly what its name states: Cash back – money in your pocket to use as you please. How do cash back mortgages work? With a cash back mortgage you will need to come up with a down payment – like any other mortgage – but you will be entitled to a lump sum after your mortgage closes. What can I use my cash for? This is entirely up to you. Most people use the money to help them with moving, closing costs, land transfer tax, lawyer’s fees or renovations – basically things required to get them into their new home. How is the amount of cash calculated? The amount you receive is based on the size and term of your mortgage. This translates to roughly…

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Rental Properties: Are They Really Moneymakers?

Posted onJune 15/2015By

For those thinking of investing in a rental property, you may be making the right choice. Rental properties are bought or developed to allow you to earn income by renting them out to tenants. These properties are often known as non-owner occupied housing and can be viewed as a risk for some lenders. However, that doesn’t mean you shouldn’t take a chance on purchasing a rental property. There are many benefits to owning a rental property that lead to monetary gain for the homeowner. The property can become your lone source of income Depending on the number of tenants you have, this kind of property can quickly morph into great earnings. Yes, there are responsibilities that come with being the owner of a property like this, but being a landlord will allow you to be your own boss while creating the best living quarters for your tenants. As the property…

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What is a Reverse Mortgage?

Posted onMay 22/2015By

Many people wish to remain in their homes as long as possible. Maybe it’s the first home they’ve ever bought or they value their independence? No matter what attachments people have to their home, once that final mortgage payment is made and you get ready to embark on your retirement journey, you may ask yourself, “Is there still value left in my home?” A reverse mortgage is a loan available to people who are at least 60 years old. The loan is based on the assessed value of your home. Unlike a regular, residential mortgage, the assessment is not based on your credit rating or income – you may not have any income coming in, especially if you are retired – but it is based on how much the house is valued and your current age. Lenders can then predict how long you can hold the loan and if the…

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How do Pre-Approved Mortgages Work?

Posted onMay 08/2015By

Getting a mortgage pre-approval is a great first step towards buying your dream home. Pre-approvals show that you are in decent financial shape and can afford to purchase a home when the time comes. A pre-approval is not a full-on mortgage authorization, but it does imply that you’re a good candidate for home ownership. You may have heard that you can also be pre-qualified for a mortgage. Being pre-qualified is not the same as a pre-approval. A pre-qualification is when a lender gives you an idea of how much you’ll be able to finance to buy your home. There are no commitments involved when you are pre-qualified, unlike a pre-approval where a lender has made an assurance to you that you’re entitled to funding. The pre-approval process starts with you. It sounds like a cliché, but a lender isn’t going to seek you out to offer you a mortgage. First…

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