Mortgage Payment Options (Frequency of Payments) As you finalize the terms and conditions of your mortgage, you will be asked to make a number of important decisions. One of these decisions relates to your payment terms – how often/how frequently will you be making your payments? There are essentially six different payment options or frequencies for your consideration: Monthly Semi-monthly (twice per month) Weekly Accelerated weekly Bi-weekly (every two weeks) Accelerated
Month: January 2014
Condominium vs. Freehold Real Estate
Condo Or Freehold - The Basic Difference Are you in the market to purchase a home? Perhaps you are currently renting your place of residence or thinking of downsizing to a smaller/more manageable home and property? Not sure whether to buy a condo or some type of freehold real estate? This last question is more complicated to answer than the others because deciding what you want to buy is often much more difficult than deciding whether to buy at all. But let’s give it our best effort – and start
Advantages Of A Second Mortgage
Second Mortgages - The Basics In a nutshell, a second mortgage is simply another loan that is secured against your home or property. It is designated as a ‘second’ mortgage because, in the event of a default, any funds obtained through the sale of your home or property (after actions such as a Power of Sale, home eviction, or bankruptcy) are initially applied against the ‘first’ mortgage – and any remaining proceeds from the sale are then used to pay off, or at least pay down a portion of, the
Mortgage Insurance vs. Life Insurance
Home Ownership - Protect Your Investment Amid all of the decisions and expenses associated with purchasing your home and obtaining a mortgage, you may feel that you have been “stretched to the limit”, both mentally and financially. Unfortunately, there is at least one other important decision that should be made (and one that could conceivably add more strain and monthly expense) – how do you protect your investment in the event of your death? The most common and recommended way to protect
What Is An Insured Mortgage?
When a mortgage is insured, the lender (or the title holder) is protected in the event that the borrower defaults on the loan, becomes incapacitated, or is otherwise not able to meet the terms of the mortgage contract. It is intended to make the lender or property holder whole i.e.: prevent them from losing the amount of their investment/loan, when any type of payment default occurs on the part of the borrower. What Steps Are Involved? A lender will require an insured mortgage when a down
The Challenges Of Applying For Self Employment Mortgages
Qualifying for a self employment mortgage can present several hurdles and obstacles. Some lenders are reluctant or hesitant to move forward due to a higher risk, perceived or actual, associated with the ability of self-employed individuals to manage their repayment responsibilities/schedules over time. When such mortgages are approved, they can often carry a higher rate of interest due to this risk. In addition, the self-employed can place themselves at a disadvantage, in a manner of
Roadmap To Your First Mortgage
Buying your first home can be a very exciting and exhilarating time in your life. While it is an investment of a significant amount of money, and undoubtedly the cause of some anxiety as well, moving into your first home is also a sense of pride and accomplishment. Well then – just find the home you want, make your offer, sign the purchase agreement, and move in. If only the home buying process could be this easy! Unfortunately, it is far from easy – purchasing a home is a very complex
Mortgage Versus Home Equity Line Of Credit
For many homeowners, the home itself is very often their most significant and most valuable asset. As a result, the equity accumulated in the home could be a prime source of funding for major acquisitions or expenditures - but many homeowners may be hesitant to borrow against this equity. Sometimes, when you need funds for a one-time purchase (perhaps a new car or a secondary property) or for varying or recurring expenses (i.e.: tuition fees, home renovations, vacation travel), the amount of
Fixed Rate Versus Variable Rate
Types of Interest Rates An important decision that you will have to make when applying for your mortgage relates to the type of interest rate – that is, do you want a fixed rate, a variable rate, or a blend of fixed and variable rates? Fixed Rate Mortgages Provide a degree of stability by locking in your interest rate for the term of your mortgage You pay the same proportions of principal and interest with each regular payment Downside – you cannot take advantage of a lower rate should
Real Estate As An Investment
Types Of Real Estate Investments Investment in real estate typically includes buying, owning, renting, managing and/or selling a secondary residence or property (a hard asset) in order to generate a profit. For the purposes of this discussion, we will exclude ownership of a primary residence, with or without a mortgage. In addition to secondary properties, there are other ways that you can invest in real estate: Real Estate Investment (Income) Trust (REIT) – A company that owns and