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Understanding Mortgages
Your Mortgage Questions Answered
How do mortgage terms work? What kind of home loan is best for refinancing? Should I choose a fixed or variable rate mortgage? Find the answers to your mortgage questions below. I’m here to help you understand mortgages, how they’re structured, and what choices will help you set up your home loan in the best and most affordable way.
Types of Mortgages
Types of Borrowers
First-Time Home Buyer
For first-time home buyers, the process of applying for a mortgage can be difficult. Since you’ve never carried a mortgage before, you are unproven in the eyes of lenders, meaning you might have to undergo rigorous credit “stress testing” to make sure you’re able to afford the mortgage payments. But while there are limitations on first-time home buyers, there are also many opportunities to take advantage of that can help with your first application.
Repeat Home Buyer
Whether on your second mortgage or your twenty-second, repeat home buyers have already gone through the process of mortgage application. Now, you get to enjoy the benefits of mature, proven credit — meaning access to better rates and higher-tier lenders. In order to take advantage of your status as a reliable borrower, however, you need a guide and advocate, like a mortgage agent, to fight on your behalf.
Mortgage Refinancing
Maybe you want to fund a home renovation or addition, or need some cash towards an investment or unforeseen expense. Home refinancing is becoming an increasingly popular way to leverage your biggest asset — your home — to secure reliable financing. In these cases, securing the best rate is the most important factor, and can help ensure that refinancing builds towards a stronger future for you and your property.
Mortgage Lengths
Amortization Period
Amortization period refers to the total length of time it will take to pay off your mortgage. Typically, this goes up to 25 years, but shorter and longer periods are available based on eligibility and affordability. The longer your term, the smaller your monthly payments; the shorter the term, the less interest paid.
Mortgage Term
During the course of your amortization period, you will sign multiple contracts, potentially with various lenders, that will dictate how much interest you pay — these are mortgage terms. These terms can range in number of years, as well as the type of rate chosen during that span of time. When your term is up, you need to renew your mortgage based on how much of your pre-interest home loan, or principal, remains.
Contact Me
The Best Mortgage Rates Are Here
Do you have questions about your mortgage eligibility? Or, maybe you’re ready to apply for a mortgage or get a mortgage quote? Contact me anytime via call, text, or contact form. Find out why so many people trust mortgage agents to handle their home loans.