There’s more to your mortgage than just the interest rate.✨
Although the interest rate is an important component in your mortgage, there are other, just as important factors to consider when signing a mortgage commitment.
3 Major Factors you should consider outside the rate:
1. Prepayment Privileges✨
• Are you looking to pay down your mortgage faster?
• Prepayment privileges allow you to increase your monthly payments by typically 15/20%, and pay down a portion of the total loan annually.
2. Prepayment Penalties✨
• Did you know if you break your mortgage before your term is up, you’ll be subjected to paying a penalty to your mortgage lender?
• Moving? Renovations? Pulling out Equity?
• These scenarios are all subject to mortgage penalties if you were to break your mortgage before your term is up.
• There are different penalties for fixed and variable mortgages.
3. Portability✨
• Planning on moving before your term is up?
• Porting your mortgage allows you to take your old mortgage to your new home, to avoid paying any mortgage penalties.
• Some mortgages allow for porting, while others do not. By planning ahead, you can plan to port.
A mortgage is so much more than just the interest rate, it’s a plan to finance your future and the various chapters you will face throughout life. It’s important to work with mortgage professionals who consider your CURRENT and FUTURE goals, as this will allow you to plan your finances in themost abundant way. ✨
Comentários