The Basics of Adjustable Rate Mortgages

November 10th, 2012

variable_rate_mortgageAn adjustable or variable rate mortgage is a specific kind of home mortgage with a varying interest. When compared with a 30 year fixed mortgage, the borrower’s payment is considerably less. This really is due to the transfer of risk from the lender to the borrower.
The Adjustable Rate Mortgage is rapidly becoming one of the more popular choices for consumers. There is certainly a remarkable spread between the prime rate of interest and a fixed long term mortgage. According to Toronto Mortgage Broker, this spread can be just as much as 3% sufficient reason for the typical mortgage in Canada approaching $130,000, this big difference in rates of interest can be huge. Read the rest of this entry »

Mortgage Advice for First Time Home Buyers

November 10th, 2012

Everybody knows that young first-time buyers want all of the aid and mortgage advice they are able to get. The very first step into the real estate market is often perceived as the hardest one. One of the reasons why this is the case are certain perceived complexities associated with securing financing for the first home acquisition.

In addition to these complexities, there is also the issue of the down payment. As you might already now, it is not all that easy to put aside 20-30% of a property’s value. The difficulties for first home buyers can be even more especially in this fiscal environment. It is thus imperative for such buyers to be well prepared when getting in the market. This way they can maximize their chances of getting a mortgage to cover their financing needs. Read the rest of this entry »