Posts
New office will be up and running come the culmination of the long weekend...
Took the kids to the PNE and even rode a few rides myself...
Have been coordinating the trades to fix up a clients house so she can refinance it after a relative pretty much destroyed it. (more on this in the coming days as I want to get into what you as the provider of a service are willing to do above and beyond your call of duty to make a sale?)
My last installment in this series is today, but feel free to ask me in an email (koyhenart@shaw.ca) or submit the question from my webpage (www.kevynoyhenart.ca) and I would love to make it simpler for you to understand.
A blended rate mortgage may be used if you want (or need) to increase the amount of your present mortgage. This could happen if you want to use up some of the equity in your house, maybe for renovations, or to buy a weekend cottage. Perhaps you are moving and need a larger mortgage to be able to purchase the new house. This option is worth considering if your present mortgage has a low interest rate, or if you wish to avoid the penalty.. With this option you get to keep the balance of your present mortgage interest rate, with only the new amount at today's mortgage rates. Because you are keeping the terms of your current mortgage, there is no penalty involved. If your present mortgage rate is higher than those being offered at the present time, it could be worth paying off your present mortgage and obtaining a new, bigger mortgage at today's rates. Please discuss the current policies of the different lending institutions with your mortgage broker, to help you decide whether or not this strategy will benefit you. Holdback: An amount of money required to be withheld by the lender during the construction or renovation of a house to ensure that construction is satisfactorily completed at every stage. There are also cases where an owner has decided to renovate but has not completed the renovation. If you try to refinance at this point, a Lender may consider funding, but would withhold a portion of the funds until 97-98% completion. Renewal: At the end of a mortgage term, the mortgage may "roll over" on new terms and conditions acceptable to both the lender and the borrower. This is known as renewing a mortgage. Otherwise, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing. As more and more banks put more and more resources into their retention teams, you will be contacted 6 months out from your term ending. |
I know I did not cover all of the terms involved in the whole process of a mortgage, but I did my best to cover the pertinent ones that always come up in conversation with a new client.
I hope you enjoyed the 5 part series and I would love your feedback if you have time.
If you have a topic you would like me to write about, mention that as well.
Enjoy another sunny weekend on the coast or wherever you may be.
Kevyn
No comments:
Post a Comment