Should you lock in your mortgage?
June 27, 2008 by Montreal Real Estate Blog
Filed under Mortgage & Financing
Interest rates are still low, but they’ve been steadily increasing. Here are some points to help you make the right mortgage decision.
If you are buying a home, you may be wondering whether it’s better to lock in a fixed rate in case rates continue to go up, or choose a variable rate that floats with the prime rate. Similarly, if your existing mortgage is variable, you may be wondering whether now is the time to lock in.
Mortgage rates are difficult to predict. It is best to base your decision on your personal situation and comfort level, rather on economic expectations.
Going variable
Variable-rate mortgages can be attractive - the interest rate is lower than for a fixed mortgage of similar size and duration.
With some mortgages, as rates fluctuate, so does the amount of your mortgage payments. Or, with set payment amounts, the portion of the payment that covers your mortgage principal will fluctuate.
In an environment of falling rates, you’ll pay down more principal and pay less interest. But if rates go up, your principal payments will shrink and it may take you longer to fully pay for your home.
Should you choose a variable-rate mortgage? If you can tolerate the uncertainty, the variable rate could save you money over the long term.
Locking in
When you lock in to a fixed-rate mortgage, the interest rate will be higher than for comparable variable-rate products. The benefit, however, is that your rate is fixed for the term of the mortgage.
Even if rates in general rise substantially, your rate is guaranteed not to change. From the moment you lock in, you’ll know exactly what your payments will be and how much of the principal will remain at the end of the term.
Should you choose a fixed-rate mortgage? If fluctuation rates are going to keep you awake at night, then a fixed-rate mortgage may be worth the peace of mind it can give you.
Your decision
Ultimately, the decision to choose a variable or a fixed-rate mortgage is as personal as choosing the right home. It should always be made with informed advice from a professional, who can help you evaluate the options based on your unique circumstances.
For any questions about mortgage financing, programs, options, interest rates etc., feel free to contact Danuta at 1-800-605-6154
Written by Danuta Levitzki.
Conseillère en Financement Hypothécaire | Mortgage Loan Specialist
Visit her website
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Repossession du Jour: Triplex in Central East Montreal
June 12, 2008 by Montreal Real Estate Blog
Filed under Repossession du Jour
Asking Price: $239,000
Property Type : Triplex
Bedrooms : 2
Interior Floor Space : 800 sqft
Built in : 1910
Location : Central - East (Montréal)
City Evaluation: $228,200
Although the information sheet describes the location as “Central”, we’ll call it Central-East, since the near intersection are borderline Hochelaga-Maisonneuve area. And we ALL know that’s not really central “downtownish”, is it?
This little triplex with its funky looking doors is now listed under foreclosure properties by RE/MAX 2000.
The MLS sheet does not mention it, but it has a yearly gross revenue of $17,000 more or less. Good? Well, that will depend on the property’s expenses, which there is no mention of it either.
There are also no additional images of this property. But if you are so keen to know more, you can contact us for more Repossession listings in the area.
Stay tuned for more listed foreclosure properties: Subscribe to the Montreal Real Estate Blog
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Real Estate Glossary: R
June 11, 2008 by Montreal Real Estate Blog
Filed under Real Estate Glossary
Rate
The percentage paid by a borrower for the use of money which is generally expressed as an annual percentage.
Rate Hold
The length of time, typically between 60 and 120 days, that a lender will guarantee a loan’s interest rate once you are locked in.
Rate Lock-in
A written agreement or contract in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set time period.
Real Estate Agent
An individual who is licensed to represent a buyer or a seller of real estate in a sales transaction. Real estate agents typically work on commission. [Read more]
Why Deal with a Mortgage Broker?
June 3, 2008 by Montreal Real Estate Blog
Filed under Buying Real Estate, Mortgage & Financing, Popular
Brokers search for the best lender package to suit your specific financial situation, whether it’s with a Chartered Bank, Trust or Insurance Company. There is a wide variety of options and features available to homebuyers today. To find the best offer takes a lot of time and effort. The mortgage process within today’s very competitive marketplace makes many Canadian homebuyers puzzled. It truly pays to work with a mortgage professional that will represent you and ensure the mortgage you get is the one best tailored to your needs.
NOTE: Choosing the wrong mortgage can cost you thousands of unnecessary paid interest money.
Why Should You Go To a Mortgage Broker First?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your Mortgage Broker is trained to present your mortgage proposal to obtain the most immediate and positive result.
Example: You don’t call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!
How Do Brokers Get Better Deals Than Many Banks?
Brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources.
Can You Still Go Through Your Bank With Your Broker?
Yes, letting a Mortgage Broker represent you to your own financial institution can often result in a better rate than you could get on your own.
Written by Danuta Levitzki. Conseillère en Financement Hypothécaire | Mortgage Loan Specialist
For current interest rates or to get more information on mortgage financing feel free to visit her website or call direct at 1-800-605-6154.
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Repossession du Jour: Penthouse in St Laurent Street.
June 1, 2008 by Montreal Real Estate Blog
Filed under Repossession du Jour
The Montreal Real Estate Blog opens a new section: Repossession du Jour or Foreclosure du Jour. We haven’t really decided on the title yet. But for the time being, we’ll call it a Repossession, alright?.
Here is our first contestant: A lovely penthouse located in St Laurent Street.
We won’t give you the exact address BUT we will give you the contact information, so if you are interested, you can do your homework and get back to us with your review.
Fair enough?
Great.
Here are the facts…illustrated.
Asking Price: $ 320,000
Property Type : Condominium
Bedrooms : 2
Bathrooms : 1
Interior Floor Space : 1100 sqft
Built in : 2005
Location : Le Plateau-Mont-Royal (Montréal)
City Evaluation: $268,100
Now, you might think that for a repossession this isn’t the best deal. And you are probably right, but considering the city evaluation against the asking price, there’s only a difference of 52k - more or less. We’d dare to say that there is ample room for negotiation.
The property is listed with Plateau Immobilier INC.(after all, it’s located in the Plateau) you can contact listing agents through this MLS link
or
You can also contact us for more Repossession listings in the area.
And a third option, you can also stay tuned for more foreclosure properties listed in Montreal by Joining the Montreal Real Estate Blog
