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13 Jan

How Do Fixed Rate Mortgages Work?

How Do Fixed Rate Mortgages Work?

Out of the various types of loans based on interest, fixed rate mortgages are ones in which the interest rate is fixed throughout the loan period. The other type of interest based loans that is offered by a lender is variable rate mortgages, where in the interest rates vary through the period of the loan depending on a factor that is pre-decided, for example inflation. The fixed rate mortgages are characterized by their fixed interest rate, the duration of the loan, its compounding frequency and the amount of loan borrowed. With the help of these the monthly interest payments can be calculated while considering if the fixed rate mortgage loan is amortizing or non-amortizing.

When compared to the variable rate mortgages, fixed rate mortgages tend to have a higher interest rate as they offer certainty in the future for the borrower. There can also be a few mortgages in which variable rate mortgages have higher interest due to their bases being one which shall decline in the future. A fixed rate mortgage is considered to be as a standard home loan.

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What Are the Advantages Of Opting A Fixed Rate Mortgage

Certain and Defined

It is convenient for the borrower as they can plan their finances and make financial projections with a fixed interest cost, unlike in the case of variable rate mortgage takers who have an uncertainty element in their decision making.

Easy to understand

It eliminates complexity in its loan agreement and in the loan tenure. As in a variable rate mortgage where the rate varies on a regular basis, and the reasons, basing on which the rates shall change may be an added burden for the borrower, and is fully eliminated in the case of a fixed rate mortgage.

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No sudden increase in interest rates

There can be a situation in variable rate mortgage when the interest rates might suddenly rise due to an exceptional case or a regular expected event in which the interest burden for the borrower becomes unworthy. This type of a situation cannot occur in a fixed rate mortgage.

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21 Dec

All You Need to Know About Home Equity Loan

All You Need to Know About Home Equity Loan

Many confuse Home Equity Loan with Home Equity Line of Credit (HELOC). Home Equity is a lump sum you borrow against your own stake, while HELOC is more like an access to a limited amount of credit which you can borrow and pay off periodically, much like a credit card. In a Home Equity Loan you use the equity value of your home as collateral, and to determine the value of the property one needs to get his / her home appraised.

How Much Home Equity Loan Can You Borrow?

Generally 80% value of the available home equity is eligible to be given out to as loan, but the loan amount also depends upon the borrower’s credit score and payment history.

Your Home Needs only a 20% Investment. Employ the Rest Elsewhere. Visit us Today.

How is Home Equity Loan different from a Regular Mortgage?

A regular mortgage is when you borrow to purchase a home. Home equity loan, is when you borrow on a part of what you own already. In a regular mortgage, buying the property is your primary motive, while in a Home Equity Loan, your primary purpose to borrow could be a personal expenditure or home renovation or such other expenses.

Is Reverse Mortgage a Better Option than borrowing on Home Equity?

Reverse Mortgage is relatively costlier. Reverse mortgage is to be paid off only at the time of resale, till which the interest gets accumulating. Amount in Home Equity is received as a lump sum and is repaid as an amortizing loan.

Other Features:

  1.  You Can Sell while on loan
  2.  You Can Use the Amount to fully finance a Second Home
  3.  You can avail finance quickly
  4.  Provides opportunity in times of lowering interest rates or rising property rates
  5.  You can avail tax benefits on the interest paid towards Home Equity Loans

Contact us Today and Know How Much Equity are You Eligible to Borrow Right Away!

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15 Dec

How Second Mortgages allow you to Borrow from Your Own Pocket?

How Second Mortgages allow you to Borrow from Your Own Pocket?

Second Mortgage options in Markham if bought after through research, can give you a great return on your equity owned. It is almost like borrowing from your own pocket and earning returns on it. For those who are new to the second mortgage, it is simply a loan you can borrow from a lender by offering him a collateral being your equity left in the home after deducting your first mortgage. Wondering how it can it not cost you much to borrow a second mortgage in spite of already having the first mortgage? Let’s see:

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Way’s You Can Use a Second Mortgage as an Opportunity:

Erase The High Rated First Mortgage Off Your Cards:

This is the most common reason for one borrowing through a second mortgage. When the mortgage interest rates in the market take a steep fall, it is better to purchase a new mortgage at a lower rate and pay off the initial mortgage to the full.

Second Mortgage Markham

Build the Resale Value of Your Home:

The second mortgage can be borrowed to renovate your home for a better resale value. At the time of resale, owners usually furnish and polish their home to make it more presentable to the buyer. Newly renovated strong houses give a higher resale value.

Call Us and Find Out the Second Mortgage Market Rates You can Access Right Away!

Give Wings to the New Business Opportunity:

That store you wanted to open or the idea you wanted to fund, that product you wanted to make or the trade you wanted to can now all be possible at a second mortgage rate. Mortgage rates would allow you to reach your break even quickly.

Lend on an Unorganized Platform:

Since mortgage collateral’s are strong and physically immovable, the lending rates are quite low compared to other financing options. This allows you to lend your money to another at a higher rate and save the difference in rates for your good.

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15 Nov

Benefits of Second Mortgage

Why Should You Take a Second Mortgage?

A Mortgage simply refers to a loan where the collateral is specifically a residential property. A second mortgage is a loan borrowed in spite of an existing ongoing loan against the property. Thus in a second mortgage the risk of the lender is higher than the risk of the first mortgage lender. The first mortgage lender has the initial rights over the property to clear off his share after which the second mortgage lender has a right.

Click here to avail a Loan of 80% of the value of your home

Usually the loan you can avail from a second mortgage is around 80% of the value of home, but it differs from situation to situation. Since the risk of the second mortgage lender is high, the interest rates are also higher than the first mortgage market rates at a particular time. That is why consulting a broker has become very necessary to secure a good deal in the mortgage market. Brokers have no charge for their consultancy, they are simply paid by their network of lenders.

Lump Sum Availed from the Second Mortgage Can be Simply Used for Anything:

Cover the Down payment of Your First Mortgage

A second mortgage can be availed to cover the down payment of the first mortgage only after which you will be able to avail the first mortgage. You can also avoid Private Mortgage Insurance using your second mortgage.

Secure a Better Interest Rate

Being a volatile market, you can avail a second mortgage at a low interest rate and simply pay off your first mortgage with the lump sum received. You can also pay off your high rated debt obligations such as your credit card dues using the second mortgage.

Meet Emergency Financial Obligations

Emergency medical expenses or higher education expenses can easily be covered by a readily available second mortgage. The rates are much lower than other borrowing options in case of a second mortgage.

Move to Another Lender

A lender having better terms and conditions can always be approached and availed by borrowing a second mortgage on your home and using the lump sum to pay off your first lender. You can convert from bank to a private lender or vise versa using a second mortgage.

Interest payments on Second Mortgage are usually tax deductible unlike other interest payments such
as your credit card interest charges.

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15 Nov

Are You Buying Your First Home in 2018 – 2019? Here’s All You Need to Know

Are You Buying Your First Home in 2018 – 2019? Here’s All You Need to Know

Make Your First Home Your Dream Home.

Most of us just hold the thought of our desired home, but there are only a few who execute it. At Toprate Mortgage, we simply guide the later few. First Homes can be quite a drag as the purchase might not turn out as simple as it may seem. Let us see what are the steps involved for a First Time Home Buyer:

THERE IS A FIRST TIME FOR EVERYTHING! Click Here For Your First Home Purchase.

Research

There are a few conditions that every home buyer must be aware of. Either he can do his own research on the rules and procedures or can simply approach a mortgage broker having reliable testimonials. Mortgage brokers are usually paid by their network of lenders and hence won’t cost you much, but will definitely save you thousands on your deal.

Determine Affordability

A certain down payment has to be made by the buyer to avail your mortgage. In case the down payment is too low, the buyer will have to buy the mandatory mortgage default insurance. Your down payment usually determines your interest rate as well as your affordability. As you are a first time home buyer your credit score may or may not be a reliable indicator.

Make an Offer and Clearing Inspections

Once you have visited a few homes and prefer a specific one you go ahead by making an offer. There may be more along with you making the offer and hence making an offer can be quite competitive. A broker usually helps you understand the locality and its ongoing rates along with the value of the built property. An inspection will then be made to check the durability and quality of the home.

Only After all these steps you will be en-cashing your mortgage and making your first home purchase. It is always better to employ a mortgage broker who can give you an insight of the market and help you get your first and best deal.

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