Bank Mortgage Rates, investment mortgage rates.#Investment #mortgage #rates


Bank Mortgage Rates

Compare bank mortgage rates below and observe how they stack up against the best mortgage rates in the market. Whether you are considering using a bank or broker, a variable or fixed mortgage rate, from one to a ten year term, Ratehub.ca sources the best mortgage rates for every category and type of lender. Ratehub.ca is also a neutral source, neither a lender nor a broker, so we are able to provide you with unbiased guidance and education on obtaining the best mortgage to suit your needs.

Posted rates vs. best rates

When comparing bank mortgage rates it is important to know that these rates represent the banks’ posted mortgage rates. The posted rate is simply the rate that the bank is advertising publicly. However, banks often have the capacity to offer lower rates, which you can access either through negotiation or reaching out to a representative mortgage broker. Some banks offer rates several percentage points below what is posted, so do not get locked in to a higher market rate than is obtainable.

Bank rates vs. broker rates

As you may have noticed, bank mortgage rates are almost always higher than those of a mortgage broker. That is because mortgage brokers have access to rates from multiple banks and credit unions, as well as insurance and trust companies, so they can essentially “shop around” for you. Brokers also receive discounts from lenders based on the high volume of their business, which they then pass along to you. As a result, it is highly unlikely a bank will post a lower rate than a mortgage broker; however, if you present the lowest market rate to your bank as part of the negotiation process, they may offer to match it. Still, we do not recommend plotting the banks and brokers against each other to compete for your business.

Comparing bank mortgage rates

You may notice that in addition to the discrepancy of the posted mortgage rates between banks and brokers, there is also a considerable difference between the rates of many banks. So, for example a TD mortgage rate with a 5-year fixed term may be 0.5% lower than the BMO mortgage rate in the same category. This discrepancy is often standard pricing strategy based on desired market share, competition, and marketing policy.


Home Loans, Commercial Loans, 20 Years of Mortgages, Austral Mortgage, investment mortgage rates.#Investment #mortgage #rates


Austral Mortgage

Call today 1300 30 30 99

Mortgage Specialists for over 20 Years

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Investment mortgage rates

Home Loans

First Home Buyers, Upgraders, Debt Consolidation or simply looking to refinance? Put yourself in a better place with an Austral home loan.

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Advantage Special 4.49%

Advantage Special 4.49% – Term Loan or 100% Offset – Fixed or Variable. Fast application processing, personal service. No ongoing fees or charges.

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Help Me Choose My Loan

Austral have 20 years experience guiding people to the right home loan. Let us help you choose the right mortgage for your circumstances

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Loan Calculators

Looking to buy a home in Australia and want to know your borrowing power? A mortgage calculator or home loan calculator will get you started.

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Commercial Loans

We have access to an extensive range of commercial loans – ideal if you are borrowing as an individual, partnership, company, SMSF or discretionary trusts

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Buying Property Using SMSF

The rules and regulations when borrowing through a Self-Managed Super Fund. This section outlines compliance, loan structure, competitive loans and more.

Investment mortgage rates

Ask Vicky Mortgage Advice

Let Vicky’s 30 years of experience guide you. First Home Buyer advice, Investment Loans, Mortgage Calculators, Mortgage Refinancing and Debt Consolidation.

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About Austral Mortgage

Austral Mortgage, established in 1992 by Guy and Vicky Edema, is one of Australia’s most professional, friendly and trusted mortgage management companies.

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Compare our Home Loans

Check out the Austral suite of home loans, see all our residential mortgages side by side and compare our rates at a glance in one place

Want to Contact Your Mortgage Specialist? Enquire Now


Current Interest Rates on Home Loans, Savings, Car loans – CD Rates, investment mortgage rates.#Investment


Today’s Interest Rates and Financial Advice:

Investment mortgage rates

Financial Advice

Would you like to buy a home but worry that you’d never qualify for a mortgage? It’s time to stop guessing and evaluate your chances to land a loan based on everything from how much you make to your credit score. Believe it or not, the odds are in your favor.

November 14th 2017

The average cost of financing a new or used car or truck has stayed low over the past year, making auto loans a bargain by any historical measure. And buyers with reasonably good credit can always take advantage of the discount loans automakers are offering on many models.

November 13th 2017

Lending money to your child is risky business. But if you can avoid the personal pitfalls and convince the federal government that this is really a loan, and not a gift, the Bank of Mom and Dad can be a financial boon for everyone in the family.

November 13th 2017

Here’s how to make all of the right decisions so that you’ll save more, invest wisely and take full advantage of all the tax breaks to build your retirement nest egg.

November 10th 2017

It’s not enough to find a good location at an affordable price. Condo buyers must consider lots of extra costs, from association fees and special assessments to how well the building is maintained and how strictly it enforces rules on everything from noise to pets.

November 10th 2017

You’ve scouted out the best mortgage rate and fought hard to get the best price on your new home. But your bargaining shouldn’t stop there. Here’s how you can save on everything from settlement fees to title insurance.

November 8th 2017

Investment mortgage rates

Interest ing Snapshot

Individual retirement accounts, or IRAs, are a great way to build financial security for you and your family. They’re easy to open and our simple strategy helps you make all the right decisions now, and in the years ahead.

Investment mortgage rates

Investment mortgage rates


Current Mortgage Rates Today – View The Best Mortgage Rates, investment mortgage rates.#Investment #mortgage #rates


Current Mortgage Rates Today

Current Mortgage Rates – Mortgage Rates Today

Investment mortgage rates

Mortgage 101: A Mortgage Resource Guide

This guide will help first-time home buyers and seasoned veterans get the information they need to make the correct financial decision regarding their mortgage. Our goal is to provide information and resources for everything you need to know about the mortgage process. Whether you are shopping for your first home or you are already established in a existing home, this page can be your guide. Take the necessary steps to make purchasing your first home or maintaining your existing home a seamless [Read More. ]

Latest Mortgage Information

Investment mortgage rates

Top 10 Loan Modification Lenders

Many Americans have been affected by the recent economic crisis. Millions of homes have gone into foreclosure, and millions of families have lost their homes. If you are at risk for losing your home, the good [Read More. ]

Mortgage Tips Tricks

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The Top 10 Tips to Help Homebuyers Thrive in Today s Current Home Market

Investment mortgage rates

Invest Smarter by Understanding the Top 6 Most Common Mortgage Myths

Investment mortgage rates

Top 5 Mortgage Scams to Watch Out For This Year

Investment mortgage rates

5 Important Reasons Why You Should Pay Off Your Mortgage Sooner Than Later

Tip of the Day

The Mortgage Library

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How to Tell if Current Mortgage Interest Rates Will Continue to Rise

Up until not long ago mortgage rates used to be very low, close to the lowest they have ever been. Rates have decreased to near record lows due to the recent housing market crash, which affected both homeowners and mortgage lenders. While millions of people have lost their [Read More. ]

Investment mortgage rates

Could a 10 Year Mortgage Rate Be Your Best Mortgage Option?

One of the key aspects of finding a good mortgage loan is determining what type of mortgage term works out best for you. Long-term mortgage loans seem more attractive at first glance because the monthly payment is much smaller, but if you factor in the larger interest rate, [Read More. ]

Investment mortgage rates

How the Current Government Shutdown is Affecting FHA Mortgages

The housing market has been recovering steadily lately, but the current government shutdown may interfere with that progress. For the first time in 17 years, the government has partially shut down. Besides other important implications, this shutdown could affect people who [Read More. ]

Investment mortgage rates

Bad Credit Home Loans Are They Possible With Today s Stiffer Regulations?

There are many reasons for having a bad credit score, and you might be wondering if you are still able to buy a home, despite your shortcomings. The truth is that there are no rules set in stone when it comes to bad credit home loans. Some lenders may be more lenient than [Read More. ]

Investment mortgage rates

What is this Difference Between a Home Equity Line of Credit vs Home Equity Loan

When buying a home with a mortgage loan, both you and your lender own parts of the home. The part of the home that you own is represented by the equity which builds up each time you make a payment. Having equity in your home allows you to take out a house equity loan by [Read More. ]

Investment mortgage rates

What Are the Typical Home Equity Loan Requirements

Home equity loans are designed to help homeowners gain quick access to some much needed cash by tapping into the equity in their homes. Home equity loans provide an alternative to taking out other types of loans or opening new credit card accounts. While other forms of [Read More. ]

Investment mortgage rates

Pros and Cons of Home Equity Loans

Home equity loans allow homeowners to take out a loan using the equity accumulated in their home as collateral. Home equity loans give you quick access to money that can be used for a home remodeling project, medical bills or college tuition. A home equity loan can be more [Read More. ]

Investment mortgage rates

Is it Possible to get a Home Equity Loan With Bad Credit?

Getting a home equity loan with poor credit is more difficult, but not impossible. Before you decide to make improvements to your home or decide that you need some quick cash, you need to find out if a lender is willing to give you a home improvement loan and how your loan [Read More. ]


Smart Search, Compare Home Loans, Mortgage Calculators, Investment Loans, Interest Rates, investment mortgage rates.#Investment #mortgage


investment mortgage rates

Please go to our commercial loans pages for all the information regarding commercial finance by clicking the button below.

WARNING: The comparison rates for all home loans are based on secured credit of $250,000 and a term of 25 years. The calculation includes the interest rate, upfront fees, ongoing annual or monthly fees and discharge of mortgage fees. The comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.

Smart Search Finance is not making any suggestion or recommendation about a particular credit product from this website. You may be viewing a product that is unsuitable for your lending needs. It is highly advised that you speak to one of our qualified licenced advisors or the relevant financial institution to ensure that interest rates, product information and your financial needs are suitable to apply for that product.

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Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

Investment mortgage rates Investment mortgage rates

About us

Smart Search Finance is an Australian mortgage comparison website that helps you find products best suited to your lending needs. We compare home loans, investment loans, Self Managed Super Funds (SMSF) and commercial loans from a wide variety of lenders.

With access to hundreds of lenders and their representatives offering more than 3,000 products. We have one of the most comprehensive listing of mortgage based loans on the Australian mortgage market.

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10-Year Balloon Investment Property Mortgage, Home and Mortgage Center, investment property mortgage.#Investment #property #mortgage


10-Year Balloon-Investment Property Mortgage

Feel stable and secure in your home and in your payment plan.

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

OUR GREAT RATES

This payment example assumes a loan with points, a loan amount of $ and an estimated property value of . The property is located in Alexandria, VA and is within Fairfax county. The property is an existing single family home and will be used as an investment property. The rate lock period is 60 days and the assumed credit score is .

At a interest rate, the APR for this loan type is and the monthly payment schedule would be:

  • payments of $ at an interest rate of
  • payment of $ at an interest rate of

If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner’s insurance premiums.

Features Benefits

  • Predictable payments
  • Free 60 day rate lock
  • For home purchases or refinancing
  • Loan amounts up to $424,100
  • Offer available on investment properties only

This is a 10 year fixed rate mortgage with a balloon payment at maturity. The loan is amortized over 30 years with the balance due and payable in full at the time of maturity. Loan matures in 10 years; you may apply to refinance the balloon payment at maturity.

NOTE: A 1% origination fee applies to this loan.

Funds can only be used to acquire, improve, or maintain rental property where the owner will not occupy for more than 14 days.

Investment Property Mortgages: For loan amounts from $25,000 to $ . Guam, Alaska and Hawaii maximum conforming loan amount $ . The maximum combined loan- to-value (CLTV) is 75% for purchases and limited cash-out loans (where funds will be used to pay off an existing first mortgage loan with little or no cash back) or 70% for cash-out loans (where additional funds will be obtained to acquire, improve, or maintain rental property above any existing mortgage, if applicable)

For purchase applications, please submit a copy of your fully signed ratified purchase agreement to [email protected] in a timely manner to ensure PenFed can meet your closing date.

The applicant is responsible for the following fees and costs at the time of closing: Origination fee, if any, appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment. Other costs may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

Escrows may be waived if LTV is 80% or less in all states.

Additional reserve requirements may apply.

If you withdraw an application that was locked and reapply within 30 days, the new application is subject to worst case pricing.

All above disclosures apply to Non-Veteran’s Administration (VA) loans. VA loans have different guidelines and eligibility requirements.

All rates and offers are in effect as of , offered for a limited time and subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

ARM vs Fixed Rate Mortgages: Which One Should You Choose?

Investment property mortgage

With mortgage interest rates at an all-time low you’re probably thinking about finally taking the big leap and becoming a homeowner or refinancing your existing home to a lower interest rate. However, the age-old question looms in front of you…which mortgage should I choose, an ARM or a fixed-rate mortgage?

The answer: it depends on your needs. While there are pros and cons to both mortgages, the real question is not which mortgage is better, but which mortgage will suit my needs.

Let’s take a look at both an ARM and fixed-rate mortgage and then you can decide which option is going to afford you your dream home or that tantalizing interest rate that will have you running to refinance your home.

Adjustable-Rate Mortgages

Adjustable-rate mortgages or ARMs have interest rates that adjust over a period of time. ARMs have had a notoriously bad reputation because of the mortgage meltdown and subsequent recession.

While this reputation was justified in the past, most of those exotic ARMs no longer exist. Today, financial institutions offer hybrid ARMs—like PenFed’s 5/5 ARM, which has a fixed-rate for five years and then the rate adjusts once every five years. This is a unique mortgage product as most ARMs adjust annually after the initial fixed terms.

The thought of an adjustable interest rate probably has you fearing skyrocketing monthly mortgage payments. Fear not, all ARMs have caps—a limit on the amount the interest rate can adjust—and ceilings—the highest the interest rate is allowed to become during the life of the loan. Using PenFed’s 5/5 ARM as an example, the initial interest rate will change every five years by no more than two percentage points up or down (the cap). This rate will never exceed five percentage points above the initial rate (the ceiling).

Fixed-Rate Mortgages

A fixed-rate mortgage provides a reliable and fixed monthly payment for the life of the loan. Because your total mortgage payment remains stable from month to month, homeowners can easily budget their monthly expenses.

Financial institutions offer various fixed-rate mortgages including the more common fixed-rate mortgages: 15, 20, and 30-year. Out of the three the 30-year fixed is the most popular mortgage because it usually offers the lowest monthly payment. However, the lower monthly payment comes at a cost of paying more in interest over the life of the loan.

Some Considerations

So, now that you know a little more about ARMs and fixed-rate mortgages here are a few things you should consider when making a decision about which mortgage will best suit your needs:

  • How long do you plan to stay in your home? If you don’t plan to stay in your home for the long haul, you may want to consider an ARM, which has a lower interest rate than the 30-year fixed and you save big money in interest charges. If you move or refinance within five years before the interest rate adjusts you can avoid a payment hike. Conversely, if you’ve found or are already in the home of your dreams, a fixed-rate mortgage makes more sense and will provide you stable payments for years to come.
  • What can you afford? Knowing how much you can afford to pay month to month in mortgage payments will also help you decide between an ARM or fixed-rate mortgage. If you’re working within a tight budget, the ARM may be a more attractive option since the payments will be lower than a 30-year fixed. But, unless you anticipate a raise or another source of added income, ask yourself if you’ll be able to afford your mortgage payment when the ARM’s interest rate increases. If not, don’t take the risk. Go with the fixed-rate mortgage and get stable monthly payments.

The Takeaway: When it’s all said and done, the goal is to get you into the home of your dreams or refinance your existing home without breaking your pockets. Both the ARM and fixed-rate mortgage are products that will help you reach your goal. However, the path you take to get to your goal depends on which mortgage will suit your needs.

Investment property mortgage

The credit union is federally insured by the National Credit Union Association.


Mortgages on Investment Properties, The Truth About, investment property mortgage.#Investment #property #mortgage


Mortgages on Investment Properties

Investment property mortgage

Investment properties, also known as non-owner occupied properties, can be very profitable for casual homeowners and real estate investors alike. While there is no guarantee that you’ll be successful, extensive research and the right timing could result in a tidy profit.

That said, it’s important to know the demographics for a particular neighborhood, and whether the market is set to improve or decline in the near and long term. It’s equally important to find a tenant to rent out your property to ensure you’ll achieve positive cash flow immediately and continuously.

Achieving Positive Cash Flow

While it’s not imperative, positive cash flow will allow you to invest in other properties by minimizing losses and out-of-pocket expenses, which will keep your DTI ratio low. It s also quite important if the property you buy isn t expected to increase in value significantly.

Cash flow isn t as important if the property is expected to surge in value, but finding a property on the cheap with the potential to appreciate is the ultimate goal.

Discovering that “hot property” is often the impetus for real estate investment. But always take your time to investigate before diving in. Certainly pay attention to local area rents to determine if buying makes more sense than renting. If the price-to-rent ratio is considerably favorable, it could be a no-brainer.

And take special care when investing out of state, and especially out of the country. If you plan on buying an investment property in Mexico or Spain, do your research and make sure you’ve got a good understanding of the laws of the land. Ensure you’re working with a reputable broker or builder. Ask for references!

Obtaining Financing on an Investment Property

The next hurdle is obtaining financing on an investment property. Even if you’re familiar with how mortgage works, it’s important to understand the restrictions tied to investment properties as they often differ from primary residences and second homes.

If you plan on buying an investment property, be prepared to put some money down, usually 20% or more. The days of 100% financing on investment properties is a thing of the past because banks and lenders incurred heavy losses from massive defaults and mortgage fraud.

All that speculation during the previous boom led to widespread strategic default, with investors cutting their losses on properties they had very little if anything invested in.

Today, you may even need to put 30% or more down on an investment property depending on your credit profile, documentation type, number of units, and the value of the property.

For example, Fannie Mae limits the loan-to-value ratio (LTV) to 85% for the purchase of a one-unit investment property. That means you need at least a 15% down payment if you want to finance one. It drops to 75% LTV for a 2-4 unit non-owner occupied property. That increases your down payment to 25%!

But wait, it gets even more restrictive. If you want to take cash out on a 2-4 unit investment property, your max LTV drops to 70%. That means 30% equity is required, which might not leave a ton of cash available for extraction.

As you can see, the more complicated the loan scenario, the less you can finance. There s also the issue of mortgage rates, which will generally rise as the LTV and number of units goes up.

Another hitch is that gifts for down payment are not allowed on an investment property, for obvious reasons. One way around this is to occupy the property first and then rent it out in the future.

In fact, that s a great way to get started in real estate investment. You live in the house or condo for a period of time, and eventually rent it out and buy another property. Rinse and repeat. That way you know the ins and outs of the property, along with local area rents, and any other quirks. Ideally, you ll also live close by if anything goes wrong.

Also note that many exotic mortgage programs such as option-arms and interest-only limit financing on investment properties to 80% or less for the most part, so be prepared to come in with more cash if you’re looking for an ultra-low start rate or some sort of negative amortization program.

Lender Restrictions on Non-Owner Occupied Homes

Now comes the trickier stuff. Most lenders don’t like to lend to investors with over 10 investment properties. And many lenders have a limit to how much they will finance, so if you’ve got two loans with a certain bank or investor, they may not be able to provide financing on a third property if you’re over their aggregate financing limit.

Additionally, if you plan on buying an investment property within a condominium complex, note that investor concentration usually cannot exceed 50 percent. This means at least half of the units need to be owner-occupied. And if it’s a new development, usually at least 50 percent needs to be sold and closed before many lenders will provide financing.

Most lenders also limit the total percentage of a complex owned to 10 percent by a single entity, so if there are only 10 units, you can typically buy just one.

Of course, these rules vary from bank to lender, and often developers will provide special financing on site to new investors. But these issues can and often do arise, preventing investors from obtaining favorable financing terms.

So do your financing homework and obtain pre-approvals before making an offer or jumping into a contract. And be prepared to show up to the signing table with a hefty down payment or you’ll likely be out of luck.

Lastly, an important note about mortgage rates. Many investors forgo mortgage financing and simply purchase investment properties with cash. But not everyone has deep enough pockets to do that.

If you do plan to finance your non-owner occ property with a mortgage, expect sizable pricing adjustments for both occupancy type and multiple units, if applicable.

In other words, if you purchase a NOO 4-unit property, expect your closing costs and/or mortgage rate to be significantly higher compared to an owner-occupied single-family residence.

That s the price of uncertainty; investment properties inherently carry more risk and are priced accordingly. Yet another reason most investors try to buy with cash instead.


Balloon Mortgage Calculator: Commercial – Investment Property Calculator, investment property mortgage.#Investment #property #mortgage


Balloon Loan Calculator

This tool figures a loan’s monthly and balloon payments, based on the amount borrowed, the loan term and the annual interest rate. Then, once you have calculated the monthly payment, click on the “Create Amortization Schedule” button to create a report you can print out.

Current Mortgage Rates

Everything You Need to Know About Balloon Mortgages

A Balloon mortgage is a loan that doesn’t wholly amortize over the life of the home loan, resulting in a balance at the conclusion of the term. Consequently, the final payment is substantially higher than the regular payments. Obviously, the majority of homeowners who choose this type of financing plan on either refinancing prior to the term ending, or selling the property. A balloon mortgage requires monthly payments for a period of 5 or 7 years, followed by the remainder of the balance (the balloon payment). The monthly payments for the time period prior to the balloon’s due date are generally calculated according to a 30 year amortization schedule.

Why a Balloon Loan?

A balloon mortgage is often chosen by individuals who want to have low, fixed monthly payments, with the end goal being to sell the property (often investment properties), at a profit prior to the balloon payment coming due.

What Are 15 Year Balloons Used For?

A 15 year balloon is a form of home loan in which the homeowner makes principal and interest payments for 15 years. Subsequently, at the conclusion of the 15 year term, they are required to pay the amount of money still owed. The 15 year has also become a preferred loan choice for a second mortgage in a piggyback agreement. It’s becoming more and more common for borrowers that put less than 20% down to opt for piggyback options instead of purchasing mortgage insurance. A piggyback can be a first mortgage for 80% of the home’s value and a second mortgage for 5% to 20% of value, depending upon how much the borrower puts down as a payment. In some cases the second mortgage is an adjustable rate; however an increasingly common option is the 15 year balloon.

Paying Off Your Loan Early Vs. Conserving the Money

Property owners who have the available resources to make a partial or full early payment on their balloon amount have the advantage of selecting from a number of different options. Your best option is dependent on your financial goals and any other investment or savings options you have. One of the main variables that determine whether it’s a better idea to pay off the balloon ahead of time is the interest rate on the loan in comparison to the interest that could be earned from investing the money elsewhere until the balloon is due. If the loan carries a higher interest rate, you would save money by paying the balloon off early. It’s important to keep in mind that an early balloon payoff requires that you pay not only the balloon amount, but any principal reduction that would be included in the regular monthly payments that are yet to be paid. One last consideration with investing or paying down your loan would be the tax implications. People in a higher tax bracket have to earn a significantly larger rate of return in the market for the after-tax returns to match the yield on paying off their debt early.

Refinancing a Balloon Mortgage When You’re Underwater

Investment property mortgageA mortgage debtor with a balloon balance higher than the property value faces challenging problems. Since no other lender will refinance an underwater home, either their current lender will need to refinance it or the homeowner will be pushed to default. In some cases an offer might be presented by the lender to extend the term of the loan for an additional 5 years at the same rate.

If you’re underwater, keep in mind that your current lender is aware that you don’t have any other option but to default, a fact that would inflict a substantial loss on the lender. A considerably better result from their standpoint would be to refinance which would keep your payments coming in and give you an opportunity to pay off your mortgage. In some cases the lender may be willing to modify the terms of your loan as well, relieving your payment problems. Basically, whatever deal emerges, you’ll be able to negotiate and if your lender understands that you see your choices as either defaulting on your mortgage or refinancing at terms you can handle, they’ll more than likely be reasonable.

Advantages Disadvantages

Advantages

If you’re wondering why a homeowner would decide on a balloon mortgage instead of a fixed or adjustable-rate mortgage, the answer is that balloon mortgage rates come at a discounted APR, making them a more affordable alternative early in the term. An example would be that if you don’t plan on keeping the property (or loan) for more than a few years, a balloon would be a viable option. That being said, there are always associated risks.

Disadvantages

The obvious negative aspect is the uncertainty at the conclusion of the loan term. For instance, after 7 years, the existing balance is owed. Just imagine if your property drops in value, leaving you owing more than the remaining balloon payment – you’d have a big problem on your hands if you can’t refinance or execute a short sale. This wouldn’t be the case if you had an ARM or fixed rate loan. ARMs may adjust higher, established by their caps which limit the amount the payments can rise, providing a certain level of protection. Even if you’re underwater on your loan, thanks to the caps, your payments will probably be manageable. Fixed rate home loans have the same payment throughout the life of the loan.

What is a Negative Amortization Balloon Mortgage?

Negative amortization develops when the monthly payment is less than the interest due which causes the loan balance to increase instead of decreasing. ARMs that permit negative amortization could increase the affordability of the home as well as provide lower interest rates, if the interest rates don’t rise consistently. As with just about everything else regarding finance, the benefits come with risks.

In conclusion

The most important thing you should do before you decide on a home loan is to evaluate all of your options and consult with a trusted mortgage broker/lender. You just might be surprised to find that today’s fixed rate loan rates may be better than a ARM or balloon mortgage and without as much risks.


Current Interest Rates on Home Loans, Savings, Car loans – CD Rates, investment mortgage rates.#Investment


Today’s Interest Rates and Financial Advice:

Investment mortgage rates

Financial Advice

Would you like to buy a home but worry that you’d never qualify for a mortgage? It’s time to stop guessing and evaluate your chances to land a loan based on everything from how much you make to your credit score. Believe it or not, the odds are in your favor.

November 14th 2017

The average cost of financing a new or used car or truck has stayed low over the past year, making auto loans a bargain by any historical measure. And buyers with reasonably good credit can always take advantage of the discount loans automakers are offering on many models.

November 13th 2017

Lending money to your child is risky business. But if you can avoid the personal pitfalls and convince the federal government that this is really a loan, and not a gift, the Bank of Mom and Dad can be a financial boon for everyone in the family.

November 13th 2017

Here’s how to make all of the right decisions so that you’ll save more, invest wisely and take full advantage of all the tax breaks to build your retirement nest egg.

November 10th 2017

It’s not enough to find a good location at an affordable price. Condo buyers must consider lots of extra costs, from association fees and special assessments to how well the building is maintained and how strictly it enforces rules on everything from noise to pets.

November 10th 2017

You’ve scouted out the best mortgage rate and fought hard to get the best price on your new home. But your bargaining shouldn’t stop there. Here’s how you can save on everything from settlement fees to title insurance.

November 8th 2017

Investment mortgage rates

Interest ing Snapshot

Individual retirement accounts, or IRAs, are a great way to build financial security for you and your family. They’re easy to open and our simple strategy helps you make all the right decisions now, and in the years ahead.

Investment mortgage rates

Investment mortgage rates


Best Variable – Fixed Mortgage Rates Toronto, Home Mortgage, Northwood Mortgage, investment mortgage rates.#Investment #mortgage


Our Best Home Mortgage Rates Toronto – Fixed Variable

Our lowest mortgage rates change frequently as we often receive short-term rate promotions daily. These promotions are never posted online. Meet with one of our Mortgage Agents to get the best mortgage solution for you!

Specials

  • 10 Year Fixed Rate Special 3.94% Your last mortgage ever
  • 5 Year Variable rate mortgage Insured at Prime .95% (2.25%)
  • Open line of Credit at Prime + .50% (3.70) some conditions apply

Many of our rates can be guaranteed for up to 4 months! This means if you secure a mortgage in April, the rate is guaranteed until August

If you are buying a home (in Canada) now, or switching from a current lender, you can secure these rates NOW by contacting us today.

Rates subject to change without notice and OAC Some Conditions Apply

Mortgage Rates

When mortgage rates change, it can happen quite quickly. So when it comes to mortgage, timing is everything. Be sure to secure your loan while rates are favourable in order to get the best deal possible. Also, if you are looking to buy a home or you are thinking about changing from your current lender, you ll want to do your research before you make any final decisions.

Remember, all mortgages aren t created equal, so it s important to compare mortgage rates and to go with a company that you trust. The terms and conditions of mortgages vary, as do the interest rates. A mortgage should be set up to fit your needs as much as possible. We want to equip you with the knowledge you need to make the best decision.

What is an open mortgage?

An open-term mortgage is an appealing option to those who plan on paying off their mortgage sooner rather than later. This type of mortgage can be repaid fully or partially at anytime without prepayment interest fees. If you want to convert them to another term, you are able to do so at anytime again without prepayment interest fees. The interest rates for open mortgages tend to be higher than those of closed mortgages because they have such flexibility.

What is a closed mortgage?

A closed-term mortgage is the common choice for people who aren t planning to pay off their mortgage in the near future. The interest rates for closed term mortgages tend to be lower than that of open mortgages. With closed term mortgages, you re able to save on interest costs and hopefully this will help you to pay your mortgage back quicker. Fixed or variable options are available for closed term mortgages but there s a restriction on the principal amount that you can pay towards our mortgage each year.

If you want to renegotiate your rate, you will need to pay a prepayment charge. In addition, you will need to pay this prepayment charge, if you want to pay off the balance of your mortgage before the end of the term or if you want to prepay more money than your mortgage will allow you to.

Prepayment Charges

With prepayment charges you have the flexibility to increase your monthly payments or to pay the whole thing off. Contact our team of experts to find out more about prepayment options.

Comparison: Variable vs. Fixed Mortgage Rates

Fixed Mortgage Rates

More than 50% of Canadians have fixed mortgage rates, which means the monthly payment stays the same over the full term. You are protected against fluctuating interest rates, so it can set up and you don t have to worry about it. If you want stability this is the best option for you.

Variable Mortgage Rates

With a variable mortgage, your rates are typically lower but they will vary over the term. Your payments will be based on market behaviour and this will have an affect on how much you are paying. The amount that you are paying will change over time.

What We Offer:

At Northwood Mortgage, our dedicated and knowledgeable staff are able to provide you with our best mortgage rates.

Call us today at 1-888-492-3690 for more details.