Your Windsor Mortgage Agent

Duncan Wilson

For Mortgage Information Call 5199822505

Or Email Wilsond@dominionlending.ca

Fixed or Variable that is the question?

I have found that people have always asked this question when applying for a mortgage. Whether it be your first time buying, refinancing to pay off debts (Check out http://www.duncanwilson.ca/about-refinancing), or refinancing to buy an investment property.

Being that buying a house is the biggest decision that will impact your financial situation for the foreseeable future; you need to be sure what type of payment you can handle. A 5 Year Fixed rate can be looked at as the same payment for five years. However, the real impact is based on the number of  years you choose to pay the term over. Perform a budget and see how much ($) in comparison to how long your amortization amortization.

This comparison will really show you how much money can be saved when applied to your mortgage payment.   It’s a simple calculation check out  ( http://calculators.dominionlending.ca/calculator-mortgage ). The rates on this mortgage appear to the left of the page. Or you can call your Windsor Mortgage Agent for a quote.  Currently the rates are very low as well, probably the lowest they have been in a while.

Now let’s discuss the variable rate mortgage. This mortgage usually carries a lower payment due to the low rate. This type of mortgage rate is usually based on the Prime rate, and is quoted as prime “minus” a certain percentage or “bps”. When the rate is for example prime minus 70 bps. This means your rate would be 2.3%. This rate fluctuates based on the Prime rate (the rate set by the bank of Canada). If it goes up your payment goes up. How much you may ask?

Here is an example.

As you can see – there isn’t that much of an increase in the payment on $200,000. But you need to prepare for this. The main idea is to capitalize on your prepayments as you pay down the mortgage. I think if your income is unpredictable then I suggest the low payments of this mortgage type, and pay down with extra money on the principal. To see the full effect of prepayments check out ( http://calculators.dominionlending.ca/calculator-mortgage ) and see what extra payments can do.

When questioning what product you should choose to save you money, always ask your Windsor Mortgage Agent. It’s the best thing you can do. They can guide you through the process and really look at some alternatives. Remember Windsor Mortgage Professional’s jobs are to get you the best rate and mortgage product by comparing all the offerings from the Banks, Credit Unions and Trust Companies.

Your Fearless Windsor Mortgage Agent

Duncan Wilson

For Mortgage Information Call 5199822505

Or Email Wilsond@dominionlending.ca

Mortgages in Windsor and your Home

According to studies many people in Windsor that own a home also have a mortgage. This would lend to say that most people know they have a mortgage, but many would ask what a Strategic Mortgage Plan is. This contains a budget plan that matches your anticipated cash flow. It can be as specific as you want. Your plan should contain certain goals that pertain to time, and lifestyle.

A Windsor Mortgage Professional can help you look over your Strategic Mortgage Plan, and adjust your amortization (time to pay off) when you look over your mortgage. Whether it be 15 years, 20 years, 30 years amortizations the longer you stretch it the more interest you pay no matter what the rate. A $100,000.00 dollar mortgage amortized over 35 years at 3% tallies a total interest of $61,000.00. While a $100,000.00 dollar mortgage amortized over 20 years at 5% tallies a total interest of $57,000.00. So make sure your comfortable with the payment and always think “How long do I want to take?”.

Your Fearless Windsor Mortgage Agent

Duncan Wilson

For Mortgage Information Call 5199822505

Or Email Wilsond@dominionlending.ca

Refinancing your Windsor Home

     Today it seems hard to get the right advice when it comes to refinancing your home. You get advice from everybody around you saying “just pay the penalty, and go into a lower rate”, or “its not worth it, it costs too much”. Whichever be the case, there is an answer.

     Sometimes it is worth it to contact your Windsor Mortgage Agent and discuss the penalty. Your penalty can be the greater of a THREE MONTH INTEREST PENALTY or I.R.D. Interest Rate Differential. In a nutshell if you have a variable rate of interest you will usually only pay this three month interest. It literally is three months worth of interest. The latter charge can be a hefty one and usually applies to fixed rate mortgage terms. In a sense it is the bank recapturing its interest on the contract you are breaking.

     When you discuss your mortgage payout it begs the question…”how much is this going to all cost?” When you refinance you are re-doing a charge on your deed. This has to involve a lawyer. You can always choose your own lawyer, or have a Windsor Mortage Agent choose a highly recommended lawyer for you. This can range in cost, but $400 is standard plus your disbursement for performing a mortgage refinance. The fee $400, with the disbursements being $350 brings the total to roughly $750.00. Prices can vary.

               Always make sure you perform a cost analysis and break-even point. It should always save your interest or cash-flow. Many times your Mortgage Agent can save your thousands.

Your Fearless Mortgage Agent

Duncan Wilson

For Mortgage Information Call 5199822505

Or Email Wilsond@dominionlending.ca

      According the Caamp Market Report for 2010 5.6 million people in Canada have a mortgage. Half of these people get two mortgage quotes from banks, and seek a rate. There is a problem with this however. Searches on your credit bureau by each bank can lend to a situation where your beacon score starts to decline. A Windsor mortgage agent can help discuss mortgage options, as well as send your info to multiple lenders using one singal credit report. It lends to say it pays to know a Mortgage Agent and have one in your back pocket.

Your Fearless Windsor Mortgage Agent

Pre-payments * 12%: Percentage of mortgagors who made a lump-sum pre-payment in the past year. o So many people want 20% pre-payment privileges and so few people use them. Many would be better off trading pre-payments for a lower rate. * 16%: Percentage of mortgagors who increased their regular payments in the past year. * 7%: Percentage of mortgagors who did both.