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Buy a Home Sooner to Build Equity

noreply@blogger.com (Your Mortgage Link) — Mon, 18 Aug 2014 12:37:00 -0600

It can be very beneficial to buy a home you can afford sooner rather than later. A home allows you to build equity and with every mortgage payment you make each month, you are building equity in a place of your own – unlike a rent payment.

Equity is the difference between the value of a home and your outstanding mortgage balance. The longer you stay in your home (and the more mortgage payments you make), the more equity you’ll have. Unlike most things you buy, a home will almost certainly increase in value over time – which builds even more equity.

Once you’re a homeowner, the payoff can be great. As the equity in your home grows, your financial flexibility also increases. Think of it as an extra source of financing for when the unexpected happens.

An added benefit of borrowing money against the equity in your home, is it usually comes with a lower interest rate than other forms of credit, such as consumer loans, lines of credit and credit cards.

Here are some ways you can use the equity in your home:

Pay off other debts with higher interest rates (like credit card debt)
Renovate or repair your home – build a new room or put in a swimming pool
For important life events – a wedding, dream vacation or university tuition
Purchase a second home or vacation property
Emergencies – like a serious illness

Investing in a home can have a significant payoff over time. And the sooner you begin, the sooner you’ll start building equity.

Self Employed and Buying a Home

noreply@blogger.com (Your Mortgage Link) — Mon, 19 Aug 2013 14:45:00 -0600

Many people may believe getting a mortgage while self-employed is difficult or even impossible. The truth is, it’s not! The mortgage approval process for a self-employed individual can be very easy.

If you are self-employed, do you:

Have good credit?
Have access to a down payment (10%)?
Have difficulty proving your income using the traditional methods, or don’t declare enough income?

If you’re missing one of these three criteria, we recommend reading further or scheduling an appointment with Devin or Wes at Your Mortgage Link to talk about how we can work together to help you achieve home ownership.

There are many rumors circulating the wrong idea about self-employed programs being offered. Here are a few statements which lack information:

“You must be self-employed for a minimum of two years before being considered for a mortgage”

If you’ve been in the same line of work for more than 2 years, regardless of if you were self-employed in the past or not, you may qualify for a mortgage. For example, if you were working for Company “A” for 3 years as a salaried electrician and decide to become a self-employed electrician, you have 3 years experience in the field.

“You can’t get a mortgage if you declare very little income”

False, even though this statement seems to make sense. If you declare very little income or if you declare decent income but it’s insufficient to support your home’s financing, there is still hope.
The traditional way to qualify a self-employed individual is by using an average income from the last two years in business. As mortgage associates, we have access to a program called “Stated Income”.

This program allows mortgage associates to use a reasonable income to qualify a self-employed worker, even if this income is significantly higher than what you’ve declared last year.

For example: If you are a hair dresser and the average income for a local hair dresser in Saskatoon is $32,000 per year, your stated income can be $32,000 even if you’ve only declared $20,000 last year.

This program is subject to special guidelines:

The income presented must be reasonable compared to the industry. Using the example of the hair dresser above an income of $100,000 would be very unlikely and therefore, the application could be declined, or supporting documents would need to be presented.
You must provide proof that you don’t owe any income tax to the Canadian Revenue Agency. This can be done by providing your most recent NOA (Notice of Assessment) or a signed affidavit.

As Mortgage Associates, we deal with many different people in various financial situations. If you are a self-employed worker, there are options offered to obtain a mortgage. Just keep in mind that a great credit and access to a down payment are crucial for these programs to work.

Are you self-employed and looking to become a home owner? Schedule an appointment with us at Your Mortgage Link and we will be happy to answer any questions you may have.

Office: (306) 244-7755
Website: www.yourmortgagenow.ca
Email: devinandwes@yourmortgagenow.ca

Devin Cristo
Mortgage Associate
License# 315791
Cell: (306) 380-6049

Wes Will
Mortgage Associate
License# 315790
Cell: (306) 380-6039

Mortgage Payment Frequency Options

noreply@blogger.com (Your Mortgage Link) — Wed, 7 Aug 2013 10:18:00 -0600

When it comes to deciding how often you’d like to make your regular mortgage payments, you can choose which mortgage payment frequency option will best benefit you. You have the option to synchronize your mortgage payments with your pay schedule. In Canada, you can choose from five different mortgage payment options: monthly, bi-weekly, accelerated bi-weekly, or accelerated weekly. Since most employees get paid bi-weekly, this schedule option is the most popular.

Some payment frequencies actually accelerate your mortgage repayment allowing you to reduce the total amount of interest you pay over the life of your mortgage. Choosing an accelerated payment also gets you out of mortgage debt years sooner.

What Are Your Options?

Monthly Mortgage Payment
A monthly mortgage payment is when your mortgage payment is withdrawn from your bank account on the same day of every month (i.e. on the 1st). With a monthly mortgage payment, you make 12 payments per year.

Bi-weekly Mortgage Payment
A bi-weekly mortgage payment is when your monthly mortgage payment is multiplied by 12 months and divided by the 26 pay periods in a year. With a bi-weekly mortgage payment, you make 26 payments per year.

Accelerated Bi-weekly Mortgage Payment
An accelerated bi-weekly mortgage payment is when your monthly mortgage payment is divided by two and the amount is withdrawn from your bank account every two weeks. With an accelerated bi-weekly mortgage payment, you still make 26 payments per year but the payment amount is slightly more than a regular bi-weekly mortgage payment.

Weekly Mortgage Payment
A weekly mortgage payment is when your monthly mortgage payment is multiplied by 12 months and divided by the 52 weeks in a year. With a weekly mortgage payment, you make 52 payments per year.

Accelerated Weekly Mortgage Payment
An accelerated weekly mortgage payment is when your monthly mortgage payment is divided by four and the amount is withdrawn from your bank account every week. With an accelerated weekly mortgage payment, you still make 52 payments per year but the payment amount is slightly more than a regular weekly mortgage payment.

The Benefit of Accelerated Payments

The one major difference between regular and accelerated payments is how the payment is calculated. With an accelerated payment option, you end up making roughly one extra payment a year. It’ll cost you a little more on a monthly basis, but will save you thousands in interest and help you pay off your mortgage even sooner.

If you have any questions regarding this topic, please give us a all today at (306) 244-7755 or email us at devinandwes@yourmortgagenow.ca.

Visit us online at www.yourmortgagenow.ca

Happy People Live in Small Houses

noreply@blogger.com (Your Mortgage Link) — Thu, 25 Jul 2013 09:09:00 -0600

Thinking of Purchasing a Smaller Home?

Moving into a smaller space does have its benefits, and there are a variety of reasons for downsizing your home, even if you're not retiring. Are you:

An empty-nester and no longer need a large home?
Tired of the up-keep of a large house, both inside and out?
Wanting to reduce your living expenses?
Traveling more?
Ready to put your energies in creative projects, not housework?

Even though downsizing usually means leaving a home full of memories, a familiar neighborhood, and friends, it also helps you de-clutter and free up your time by spending less time cleaning and maintaining your home, and having more time for other things.

Another great benefit - smaller homes are less expensive to purchase, and less expensive to keep (mortgage, insurance, taxes, heating, cooling, electricity, etc.). There is also a wider market to sell a smaller, reasonably priced house to a larger percentage of the population than a more expensize, less affordable one. A great opportunity for those looking to build their equity and not yet ready to buy into a large home.

Looking to Move Out of the Renting Lifestyle?

If you are still living as a property renter and are thinking of purchasing your first home, one thing to take into consideration is the space you will actually need and how much you'll be able to afford.

Some things to start asking yourself before deciding on the type of property you want to buy:

Do you have a growing family and require the space for play and sleep?
How long do you plan on living in your first home? 3 years? 5 years? Or are you looking for that forever home? Maybe you only need a starter home right now and don't want the hassle of cleaning the extra space you are not using.
Are you looking for a place with a yard to finally move out of your condominium suite? Even if you don't have a family to accommodate in order to buy a home, owning your own living space can be very rewarding, especially when you have your own yard to entertain friends and family.
Will you be able to afford the maintenance of your new home? As a home owner, after all, you essentially are your own landlord. A pipe bursts in the middle of the night? Guess who’ll be up fixing it or calling (and paying) the plumber? (Hint: you.)

Whether you are buying a home to fit your growing family, or are looking to purchase something smaller to fit your own needs, chances are, you'll need a mortgage.

If you have any questions, please feel free to give us a all today at (306) 244-7755 or email us at devinandwes@yourmortgagenow.ca.

Add Home Renovations to Your Mortgage

noreply@blogger.com (Your Mortgage Link) — Fri, 12 Jul 2013 11:13:00 -0600

Purchase Plus Improvements

Are you having problems finding the right home? Maybe you have found a great home but the kitchen was outdated. You can stop overlooking these properties. There are mortgage programs available that can help you move into a home with a new kitchen or beautiful hardwood flooring.

Both CMHC and Genworth Insurance offer a program called “Purchase Plus Improvements” which allows you to purchase a home, renovate it and incorporate the cost of the renovation into your new mortgage - for as little as 5% down payment based on the improved value of the home.

These improvements must be permanent to the home or property. For example, new windows, roofing, a new garage, bathroom renovations and kitchen renovations would all apply. A new washing machine or refrigerator would not because it is not a permanent part of the home. Although, a built in range or dishwasher would be eligible because they are permanently attached to the home.

How It Works

Let’s say you were to purchase a home for $200,000 and wanted to do $30,000 worth of improvements, CMHC/GE will insure a mortgage based on 95% of the “improved value”. In this example, your down payment would be 5% of $230,000, or $11,500. This can only be approved if the renovations you make add value to the home. For this example, the insurer and lender would have to agree that the renovations increase the value of the home by $30,000.

When making an offer on a house, make the offer conditional for a longer than normal conditional period, if possible. Borrowers must provide a quote from a contractor, before closing on the house, which is then submitted by your Mortgage Associate, to both the mortgage lender and CMHC/Genworth for approval.

On closing day, the lender will submit the total mortgage amount to your lawyer. The improvement amount is held by the lawyer until the renovations are 100% completed and the added value of the home is confirmed by an appraiser. Since the funds will not be released to you until the work is complete, we recommend that our clients apply for an unsecured line of credit so the initial costs can be paid and work can begin. You also may be able to find a contractor who is willing to be paid for the work upon completion.

The advantages of utilizing the Purchase Plus Improvement Programs are that the cost of the renovations are incorporated in a low interest mortgage.

If you have any questions regarding this topic, please give us a all today at (306) 244-7755 or email us at devinandwes@yourmortgagenow.ca.

Visit us online at www.yourmortgagenow.ca!

How Long Does My Pre-Approval Last?

noreply@blogger.com (Your Mortgage Link) — Wed, 19 Jun 2013 15:21:00 -0600

The first step in your home buying journey should be to obtain a Pre-Approval.

Pre-Approvals are great for two reasons.

1. A Pre-Approval will give you a clear understanding of how much you can afford to buy. More so by talking with us, you will get a better understanding not only of how much you are pre approved for, but more importantly how much you can afford.

2. Pre-Approvals not only help you determine what price range you should be shopping in, but they also come with an Interest Rate Guarantee. This means that for the period that your Pre-Approval lasts (usually 120 days) you are guaranteed the lowest rate offered by the lender. If rates go up, you still have the same rate you were Pre-Approved with. If rates go down, then you will get the lower rate.

What You Should Know About Getting Pre-Approved
- Pre-Approvals come with no obligation and are completely FREE
- You are guaranteed the lowest interest rate for 120 days
- It only takes 10 minutes to fill out the Pre-Approval application. You can even Apply Online.

What Do Lenders Look For?

A Pre-Approved mortgage is based on the information you provide on the application. The lender is assuming without verifying that the information you provided are accurate and verifiable.
Lenders typically will look at 5 main factors when reviewing a mortgage Pre-Approval:

1. Who You Are
2. Your Employment History
3. Your Income
4. Your Credit History
5. Your Debts

What a Pre-Approval Doesn’t Do
It is important to note that while we strongly recommend getting Pre-Approved for a mortgage, it is not a substitute for a mortgage approval. You should be wary about waiving any financing condition on a Purchase Agreement in lieu of having a Pre-Approval.

The reason for this is while a Pre-Approval will tell you what you can afford based on a number of factors it does NOT take into account the actual property you are purchasing. Lenders have guidelines for properties that must be met regardless of how well qualified you are as a borrower.

Also keep in mind that Pre-Approvals do not require any documentation to prove your income or other information that you used to apply. While you may earn enough to qualify for the mortgage if you are unable to confirm this information in a manner which is acceptable to the lender your Pre-Approval won’t matter very much.

The bottom line is to work with a Mortgage Associate who will make sure your needs are being met. This will make your experience much more enjoyable!

If you have any questions about Pre-Approvals, please give our office a call at (306) 244-7755 or email us today.

Visit us online at www.yourmortgagenow.ca!

Things to Consider When Buying a Cottage

noreply@blogger.com (Your Mortgage Link) — Mon, 27 May 2013 11:00:00 -0600

Finding the Perfect Country Home Requires a Bit of Research...

There's something cathartic about packing up a cooler, an overnight bag and the kids and getting out of the city, even if it is only for a weekend.

Surrounded by tall trees, clean air and natural beauty, a home in the country can be an ideal escape. It can also be a nightmare if you don't ask the right questions when shopping around.

Financing
The question you should ask yourself is: can you afford a second home? Financial institutions offer several methods to pay for the cottage, such as increasing the mortgage on your city home or creating a second mortgage, but you have to have the income to make the payments.

Be aware your physical condition can play a factor in your approval. If you're pregnant, you may not fit into the formula when they calculate your finances.

Location

Once you've determined the amount you can comfortably spend, you have decide upon a location you can afford and will enjoy. Most people only want to drive a maximum of two and a half to three hours.

Identify property attributes important to you and your family. Do you want to be by the lake or by a ski hill? Do you want neighbours near or far? Are you partial to sun exposure or do you prefer a heavily wooded lot?

Home Inspection
Not only do you need to consider the number of bedrooms, the structure of the house and the condition of the electrical wiring in a cottage, you also have to find out where your water comes from and whether you can enjoy your home away from home in the winter.

Things to Consider
• Is the road to your cottage open and maintained year-round?
• Does the cabin pump water from a lake or a well?
• If from the lake, is this same water used for recreational or industrial purposes?
• If from a well, is it on higher ground than the sewage system and has it ever dried out?
• Does the sewage system – usually a septic tank or tile bed – work and is it far enough away from trees to protect it from being blocked by roots?
• Will the sewage system eventually need to be connected, at a cost of thousands, to a town sewer supply?
• Will you be able to renovate or build additions to the cottage?
• What are the laws regarding water exclusivity, as well as hunters, cross-country skiers and others crossing your land?

Peace of Mind
The last thing you want is to cast that rod and have a canoeist pull up moments later to tell you fishing is forbidden. Ask the municipality about fishing, hunting and boating, particularly about motorized crafts.

With financing available, location decided upon, house chosen and pastimes permitted, all that's left to do is breathe in the fresh air, enjoy your surroundings and wonder why you hadn't bought a cottage sooner.

Do you have questions about a second mortgage?

Call Devin Cristo and Wes Will of Mortgage Link today (306) 244-7755 or email them at devinandwes@yourmortgagelink.ca.

How to Budget for Closing Costs

noreply@blogger.com (Your Mortgage Link) — Mon, 13 May 2013 13:56:00 -0600

Over and above your down payment, there are always last-minute costs such as legal fees, appraisal fees, moving expenses, and house insurance to pay before you are finally a new home owner.

These are known as “closing costs”, and there are some that you simply cannot avoid or lessen, as they are legally required and often fixed at a particular rate or charge. The time to budget for those “end” expenses is now. You must be prepared to pay most, and perhaps all, of the following costs.

Property Purchase Transfer Tax
Some Provincial Governments impose a Property Purchase Transfer Tax (PPTT) which must be paid when a property is legally transferred to a new owner. Each Province has there own formula.

Goods and Services tax/Harmonized Sales Tax
If you are purchasing a new home, you may be subject to GST/HST on the purchase price. Most Provinces will reduce the GST/HST if the purchase price is under a certain threshold. Check your Provincial Government Web Page for details.

Legal Fees
The transfer of property ownership fro the seller to the buyer must be recorded in the Land Title Office. Only a lawyer or notary can act on your behalf during the completion of your purchase. Legal fees for this service typically include a registration fee, disbursements, and a fee to prepare and register the mortgage documents.

Property Tax Adjustment
Of the current owners have already paid the full year’s property taxers to the municipality, you will have to reimburse them for your share of the year’s taxes.

Home Inspection Fee
A property inspection includes a check of all the major components of a building - roof, foundation, insulation, plumbing, heating, and electrical systems are all properly tested and examined. Not only do inspectors catch things you may have missed, but they also provide a detailed, written inspection report. CIBC will pay up to $500 for home inspections in most places in Saskatchewan.

Appraisal Fee
Lending institutions require an appraisal of the property before giving you your mortgage funds; it will be your responsibility to pay the appraiser’s fee.

Title Insurance
The lending institutions may also require Title Insurance (which has now replaced a Survey Certificate in most cases) to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries.

Mortgage Default Insurance
A high ratio mortgage allows borrowing more than 80% of the purchase price of the new home. In most cases, the premium is added to the mortgage amount, however if you can pay the premium upfront, do so now - it could save you even more later.

Life and Disability Insurance
As you take on any new debt, you should always consider your insurance protection needs, especially if you have a young family. You could purchase protection from your lender, however in most cases you would be better off tom speak to an insurance agent/broker.

Fire Insurance
The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of fire, the lender will receive the balance owing on the mortgage before you receive any insurance proceeds.

Budget Your Closing Costs by downloading our Closing Costs Worksheet

Have questions? Give us a call today (306) 244-7755 or email us at devinandwes@yourmortgagelink.ca.

The 5 C's of Credit

noreply@blogger.com (Your Mortgage Link) — Wed, 8 May 2013 14:07:00 -0600

Applying for a mortgage can be a nerve-wracking experience when you’re not sure what to expect. Before you go looking for credit, take a few minutes to understand what lenders are looking for:

How might you stack up in a lender’s analysis of the five C’s of credit?

CAPACITY

Be prepared to show that you can afford your payments. The lender will look at your income from all sources, and compare that with your monthly financial obligations.

CAPITAL

Your downpayment demonstrates that you can save and accumulate assets, and that you are more likely to do all you can to keep up with your mortgage payments.

COLLATERAL

This is the lender’s assurance that the mortgaged property is marketable and can be re-sold to recover the investment.

CREDIT

Your habits in meeting your debt obligations will be evaluated. Do you consistently pay your debts on time?

CHARACTER

Are you sufficiently trustworthy to meet your obligations? Your education and work experience will be factors, along with length of time at your current residence and job.

Your Real Estate Team

noreply@blogger.com (Your Mortgage Link) — Wed, 10 Apr 2013 14:08:00 -0600

You’ll want to have a team of professionals at your service when buying your first home. Here’s a guide to who they are and what they do. You decide exactly who is on your team, but there are a few professionals without whom buying a home is nearly impossible. Ask neighbours, friends, family members, and coworkers for referrals in putting together your team.

Mortgage Associates

When it comes to making a major decision like financing your new home, mortgage advisors are qualified professionals who can help you sort through the maze of different options and features available in today. They do all the paperwork, and offer better rates than you can obtain in a branch.

Realtors

When a home is put on the market, the vendor (seller) is generally responsible for any real estate commissions associated with the sale. Therefore, there are many advantages to you in seeking the assistance of a qualified Realtor who has experience in the area you are house hunting. A good Realtor will make the home-buying process easier, helping you avoid common pitfalls and making sure you get the best value for your money. Be sure to find a real estate agent who is interested in giving great service - as defined by you the client.

Home Inspectors

A property inspection includes a check of the roof, foundation, insulation, beams, gutters, bricks, siding, and caulking of the building you are considering to buy. The plumbing, heating and electrical systems should all be tested and fully examined.

Not only do inspectors catch things you may have missed, but they also provide a detailed, written inspection report which includes an estimated cost for specific repairs and maintenance if applicable. The offer you make to the vendor should always be conditional on a satisfactory inspection. If you discover any serious defects you should renegotiate your offer or suspend negotiations altogether by withdrawing your offer.

Appraisers

An appraisal includes an unbiased assessment of the property’s physical and functional characteristics, an analysis of recent comparable sales and an assessment of current market conditions affecting the property.

Most mortgage lenders require an appraisal to be completed prior to you receiving your mortgage funds. An appraisal report provides you with an expert’s second opinion as to the property’s market value, which may or may not match your purchase price.

Lawyers

Hiring a lawyer is the best way to ensure that your legal interests are being protected when you buy your new home. Your lawyer will review any documentation you need to sign, and perform the necessary searches to clear title from the seller so that the property can be duly registered in your name. A few days before closing, you will visit your lawyer’s office to sign the closing documents. The lawyer collects the mortgage funds from your lender, and together with your certified cheque for the remaining balance, disburses the funds to all relevant parties.

Insurance Agents

An insurance agent or broker can provide you with all your insurance needs, including property insurance and life and disability protection. Lenders insist you purchase fire insurance because your property is their collateral or security for the money they lent you. Property insurance covers the replacement cost of your home, and premiums vary depending on your coverage amounts, deductibles, and the value of your home.

Life and disability insurance is offered by most lenders, but unlike fire insurance coverage, you are not required to purchase it. It may be easy and convenient to do so, but often it’s more expensive and less flexible than it could be. If you are a nonsmoker with no history of health ailments private insurance coverage through an insurance broker is less expensive, and offers better coverage for you and your loved ones.

How The Mortgage Process Works

noreply@blogger.com (Your Mortgage Link) — Tue, 26 Mar 2013 14:59:00 -0600

Understanding the process involved in obtaining financing for your home is important. As Mortgage Professionals, we handle everything from your pre-approval to securing the best mortgage rate that works for you.
Our mission is to make this process as simple as possible. Let’s take a closer look at the steps involved and educate you with the information behind them.

Step 1 – How Much Can You Afford?

Before you begin to look for a home, you should have a clear picture of what you can afford in terms of price, down payment, fees, and other expenses.

Consider the cost of living in the home. How much will it cost to heat monthly? What about the monthly cost of insurance, electricity, water, maintenance - painting, repairs etc.? If you are considering buying a condominium, how much are the monthly management fees? How will they affect your ability to carry on a mortgage?

Predicting the cost of living in a home compared to living in an apartment can be difficult. There is a rule of thumb to help you estimate the difference between the two. Take the value of the home you are considering and multiply it by 3 per cent. Then divide that figure by 12. In our example of the $290,000 home, the monthly cost using this formula would be roughly $725 in addition to mortgage and taxes.

Before you find the home of your dreams, make sure you can afford it first!

Step 2 – The Mortgage Application

A typical mortgage application is not very complicated. We are looking for some information about you and whoever is going to be on the mortgage with you. You will need to provide your SIN (Social Insurance Number), employment information – how much you make and how long you've been there, where you live and how long you've lived there, how much debt you have, what your credit is like (past and present), and your financial net worth. All of your information that is relayed is strictly confidential and is 100% secured.
Once you have filled out our mortgage application, you will be asked to sign two consent forms that allow us to update and review your credit bureau.

You can apply online today using our Online Application Form

Step 3 – Let’s Get You Pre-Approved!

Your pre-approval is generated from a lender. A lender provides the financing for your mortgage, often bank or financial institution. At Mortgage Link, we have access to over 20 Lenders to find you the best mortgage rate that fits your needs.

Check out our Lenders page to see some of the companies we are associated with.

Your Mortgage Application will then be submitted to a lender for pre-approval and may require more information on your financial situation.

Arranging a pre-approved mortgage is one of the most important steps in the home buying process. It not only protects you in the event of an interest rate increase for up to 120 days, it also provides you and your Realtor with a price range for looking at homes. With a mortgage pre-approval, you can shop with confidence.

Step 4 – The Approval

Many confuse the terms “Pre-approval” and “approval”. If you are pre-approved for a mortgage, yes you may go shopping for a home – but it doesn't mean that you are guaranteed a mortgage!

The approval is supplied by the lender when all of the information we relayed to the lender is verified! For example, we will have to supply the lender a letter of employment and a paystub to “verify” that you make what we’re telling them.

Certain different conditions of verification will be called upon for the different information that we supply the lender. We will communicate with you with what documentation the lender requires to approve your mortgage application.

Be prepared to submit the following documents:

Job Letter – A letter from your employer (on company letterhead) stating your wage amount, guaranteed hours, state date and position, name and title of person signing the letter.
Two Most Recent Paystubs
Last 2 year’s T4’s
Last 2 year’s NOA’s (Notice of Assessments)
Child Tax Benefits (if applicable)
Down Payment Information

3 Months Bank Statements showing proof of down payment in your account(s)
Signed Gift Letter and Deposit of Gift into account

Photo Identification
If Divorced:

Signed Separation Agreement
Divorce Decree

Current Mortgage Information (if applicable)
Debts Paid
Lawyer Information
MLS Listing of Property
Signed Counter Offer
Accepted Offer to Purchase
Signed PCDS (Property Condition Disclosure Statement)

*There may be more information the lender will require and it is in our hands to update you on any outstanding conditions required. We prepare your documents for the lender and it is critical this information is taken care of as your mortgage will not be funded if the lender does not receive any outstanding information prior to possession date.

As long as you are prepared to submit your information, the easier the process will be. Once your mortgage is approved, you will sign a Mortgage Commitment outlining your mortgage product and rate. You must review these documents prior to signing and make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate.

Step 5 – The Closing

Once all the conditions are verified, the lender will package your mortgage and send all information to your lawyer.

The lawyer will work on your behalf to review the following:

The Offer to Purchase
The Mortgage Commitment
Any potential encumbrances, liens, easements, restrictions, encroachments, or other claims registered on the title.
Contact the lender to arrange transfer of funds

You will meet with the lawyer shortly before closing date to review and sign closing documents. On closing day, your lawyer and the seller’s lawyer will exchange documents, funds, keys and register all documents on title. There are also several fees associated with obtaining a mortgage and transferring property ownership which you will be expected to pay at closing.

After reading this, we hope you now understand your key role as the borrower. You’ll submit your information and any necessary documents, look for your new home, and we’ll take care of the rest!

(306) 244-7755 | devinandwes@yourmortgagenow.ca | www.yourmortgagenow.ca

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We are YOUR Trusted Saskatoon Mortgage Associates

noreply@blogger.com (Your Mortgage Link) — Thu, 14 Mar 2013 14:54:00 -0600

Visit us online at www.yourmortgagenow.ca

The Importance of Financing Conditions

noreply@blogger.com (Your Mortgage Link) — Wed, 27 Feb 2013 10:02:00 -0600

So you’ve found the condo or house of your dreams and you want to make an offer. The Agreement of Purchase and Sale is the official document that includes the terms and conditions of your offer. Do you need a financing condition?

A condition is defined as “a requirement that is fundamental to the very existence of the offer.” A breach of a condition allows the Buyer to get out of the contract and obtain the full amount of the deposit back. There are limitless types of conditions that might be included in an AP&S; one of the most important one to understand is the Financing Condition.

The financing condition protects a Buyer. While the legal wording of the clause may vary, it essentially tells a Seller that your offer to buy their property is conditional on you obtaining financing. A well-worded financing clause will state that the financing you obtain must be “satisfactory to the Buyer in their sole and absolute discretion;” meaning that the terms and conditions of the financing obtained (interest rate, payments, etc.) must be satisfactory to you – not just that you were able to obtain financing from someone at some imaginary rate.

If you buy a property without a financing condition and then realize that you can’t find a lender to lend you the money, you’ve got trouble. Or maybe you find out your credit isn’t as good as you thought it was and the bank is penalizing you by charging you a higher interest rate and you can no longer afford the mortgage payments. A financing condition can protect you from losing your deposit and being sued, by giving you an ‘out’ if you need it. Of course if your offer is conditional on financing, you have a duty to seek financing in good faith (meaning you can’t just change your mind about the house the next day and back out of the deal saying you couldn’t get financing).

Mortgage Pre-qualification vs. Pre-approval

People often mistake being pre-qualified for a mortgage for being pre-approved for a mortgage. Being pre-qualified means that a lender has determined how much mortgage you can afford by looking at how much money you make and what your debts are and applying their fancy ratios. They have not likely confirmed what you’ve told them (with credit checks and employment confirmation letters), nor have they guaranteed you an interest rate or mortgage terms.

Mortgage pre-approvals are in writing – so if you don’t have something in writing (probably valid for 120 days), then you aren’t actually pre-approved. Having a financing condition in your offer gives you the opportunity to confirm everything with your lender and is one of the most important ways of protecting yourself.

These days, banks are often looking to approve people for a mortgage for a particular house – they want to know that the home they are purchasing with you is worth what you paid. They may order an independent appraisal of the house and will lend you money based on that appraisal. Again, a financing condition can protect you.

Financing conditions generally last for 3-5 days, giving you time to sort out your finances. At the end of that time period, you’ll be asked to sign a ‘waiver’ or ‘fulfilment of condition’ and your offer will no longer be dependent on your financial situation.

If you find yourself in a bidding war or some other high-pressure negotiation where financing conditions aren’t likely to be accepted by the Seller, there are ways of being fully approved by your lender BEFORE you make an offer, thus enabling you to make an offer without a financing condition. A good Realtor and lender can guide you through this process.

High Ratio Mortgages

noreply@blogger.com (Your Mortgage Link) — Tue, 26 Feb 2013 09:44:00 -0600

When you need a mortgage that is more than 80% of the purchase price of your home, mortgage loan insurance is required. In Canada, mortgage insurance is provided by either CMHC, a crown corporation, Genworth Financial or Canada Guaranty, Mortgage insurance protects the lender and, by law, most Canadian lending institutions require it.

Having mortgage loan insurance means that if you, the borrower; default on your mortgage, the lender is paid back by the insurer. With the risk of losing their money removed, lenders have confidence to make mortgage loans up to 95% of the purchase price of the home. That means your down payment can be as little as 5% of the purchase price of the home.

How Much Does it Cost?

A premium will be applied. It depends on the amount of your mortgage in relation to your purchase price. The larger the down payment the less the premium. Although you are permitted to pay the premium up front, most borrowers pay it back over the life of their mortgage by including it with their monthly payments.

Down Payment	Premium
5%	2.75%
10%	2.00%
15%	1.75%
20%	1.00%

Money Saving Tips

• The decision to grant credit and the interest rate you can successfully negotiate will be strongly influenced by your past credit history. The best thing you can do is avoid debt as much as possible, always pay your bills on time, do not charge your credit limit up past 75% of what’s allowed, and the less you inquire for credit the better.

• Ask your lender for details in the trade off between slightly higher payments and a shorter amortization. For some buyers with good budgeting skills, ask what the payments would be over a twenty year amortization instead of twenty-five. In return for slightly higher payments, you could shave five years off your amortization, build equity in your home faster, and be well on your way to being mortgage-free sooner.

• Take advantage of any prepayment privileges your lender will allow. Treat your regular payment as a worst case scenario in which it will take twenty-five years to pay off your mortgage. Any extra payments you make go directly in your pocket, because every dollar you pay over and above your regular payment goes directly to principal. That means, whenever possible, a few hundred dollars here and there can quickly add up to a few thousand saved later on.

Are You Asking Your Mortgage Associate the Right Questions?

noreply@blogger.com (Your Mortgage Link) — Wed, 16 Jan 2013 14:55:00 -0600

Your home will likely be the single largest purchase you make and will be a part of your life for the next 25+ years. Decisions you make now could affect you for years to come, which is why it is imperative that you know what to look for in a mortgage associate and understand the process that goes through with applying for a mortgage. Don’t be afraid to ask questions. The more you get to know your mortgage associate beforehand, the better.

Ask your friends and family for recommendations.

If they own a home, your friends and family members have been through the very same process. Make sure you ask the opinion of someone you consider a reliable source.

Do your own research over the Internet and by phone.

Don’t just trust the recommendations of your family and friends. Ask questions about deals and conditions, and don’t be afraid to compare mortgages rates offered by different providers. Do your homework.

Take notes.

The notes you take will come in handy when making your final decision. Take notes that include names, dates, and offer details.

QUESTIONS TO ASK YOUR MORTGAGE ASSOCIATE

How long have you been in business?

Although there’s nothing wrong with working with someone who’s new to the business, you will probably want to work with someone who has some experience under the belt. Does this associate have an office? Is it buzzing with business, or is it quiet and conservative?

What kind of education or licensing do you have?

All mortgage associates in Canada require a license in order to practice. Some are members of associations, while others work from private practices.

What do you base your recommendations on?

Remember that your mortgage associate works for the lender. It is their responsibility to deliver good, credit-worthy borrowers, like you. If they recommend a certain lender for you, ask why. You want to be sure that they’re making recommendations for the right reasons by choosing a lender and rate that will fit your file.

Make sure to Review your Mortgage Commitment from the Lender

If your mortgage associate has promised you a specific rate, review your Lender's Mortgage Commitment to ensure the discussed rate is locked in.

Are you affiliated with any mortgage associations?

Membership to some mortgage associations can sometimes be indicative of the associate’s oath to offer the best loan options available, regardless of commission. Membership to some associations requires additional education and examinations. Also, those mortgage associates who do belong to professional organizations may also be listed in a directory.

Can you provide me with references?

Even though your mortgage associate will most likely come armed with testimonials from past clients, there is no way of determining how old those testimonials are. Instead ask them for the names of Realtors with whom they’ve worked.

How often will we be in contact?

Although this might seem like an unimportant question, it could be the difference between a painful experience and a smooth transaction. Lenders might ask for several documents at different times during the process. Whether they need proof on down payment resources, letters from employers or identification, your mortgage associate will notify you once the lender has asked for certain documents so you can provide them.

The combination of thorough research and proper inquiry should help you narrow down your pool of potential loan providers. Trust your gut and only make your selection if you are fully comfortable with it.

For our most recent Rate Updates, visit www.yourmortgagenow.ca or subscribe to our monthly Newsletter

Good Luck! Call us today if you have any questions : (306) 244-7755

Coming Spring: Local 10-digit dialing and New 639 Area Code for SK

noreply@blogger.com (Your Mortgage Link) — Mon, 7 Jan 2013 15:42:00 -0600

As of May 11, 2013, Saskatchewan residents will now have to dial the area code plus the 7-digit number when calling locally. The move to 10-digit local dialing is part of a decision by the Canadian Radio-television and Telecommunications Commission (CRTC) to introduce a second area code in Saskatchewan, (639) and will impact all service providers operating in the province.

SaskTel has already enabled its network to accommodate 10-digit local dialing. Between February 25th and May 11th, when placing a local call, you can expect to receive a message instructing you to add the area code for future calls. SaskTel will then automatically complete the call up until May 11th, at which time the call must be re-dialed to include the area code.

SaskTel is hoping to make this transition as smooth as possible for their customers by pro-actively reminding us of this change.

This means you'll need to update the area code on your contact list, cell phones, fax machines, modems, home security, equipment for the hearing impaired, speed dial, call forwarding and call blocking. You should also begin providing your 10-digit phone number on all of your personal contact information such as: personal cheques, medical forms, stationary, business cards, insurance forms, etc.

Don't forget about your advertising! Businesses should also make necessary changes to their advertising materials, signage, websites, and any other places where business phone numbers are listed.

Don't worry, your current phone numbers will not change, and long distance calling (1 + area code + phone number) will remain the same. Special 3-digit numbers such as 911, 611 and 411 will continue to be 3-digit phone numbers. Once the area code 639 is introduced, the 306 and 639 area codes will be assigned to new phone number interchangeable throughout the province.

For more information, see sasktel.com at http://www.sasktel.com/dial10/

Is Buying a New Home One of Your New Year's Resolutions?

noreply@blogger.com (Your Mortgage Link) — Thu, 3 Jan 2013 15:19:00 -0600

If you're not already a homeowner, maybe this will be the year that you make the change over from renter to owner for your own good. Owning your own home gives you more freedom of choice and also sets you on the path to financial security.

With rates at an all-time low, there's never been a better time to purchase real estate.

The decision to purchase your first home is one of the biggest and best decisions you could ever make. After all, a home is the largest (and most emotional) investment most people will ever make. So, how do you know if it's the right time for you to buy your first home?

There is never a wrong time to buy the right home. The key is finding a good buy and taking the time to carefully evaluate your finances.
A home purchase is an important step in the path to long-term wealth. Purchasing your own home is a great investment that provides specific financial advantages, including equity buildup, value appreciation potential and tax benefits. It's also an automatic savings plan that you cannot get from renting!
Here's the most important rule for keeping your stress to a minimum: you don't have to know everything. Your Real Estate Agent is ready to help you through every step of the process.

Call us today at (306) 244-7755 to set up an appointment for your Pre-Approval! Have questions? Email us at devinandwes@yourmortgagelink.ca.

If you've been thinking about real estate for a while New Year’s is a great time to make a final decision and set a goal for yourself. You know how quickly time can pass. When you make 2013 the year that you finally purchase your own property, you'll be able to sit in your new home on New Year's Eve 2013 while making new resolutions for the year 2014.

Visit our website for our current rate specials: www.yourmortgagenow.ca

Why Should a Seller Involve a Mortgage Associate into the Home Selling Equation?

noreply@blogger.com (Your Mortgage Link) — Tue, 18 Dec 2012 16:24:00 -0600

One thing that many Realtors® have learned is the importance of having a team of professionals to facilitate a smooth transaction for their sellers. Having a Mortgage Associate on the team can make available the following services to you as a home seller and all for FREE:

Mortgage Associates can screen all potential buyers. Today’s mortgage world is a rapidly changing environment with programs and requirements changing regularly. A good Mortgage Associate is up-to-date on all of the current guidelines and can find the best solutions for clients. As a seller you need to know that when you accept an offer, the buyer will actually be able to close.

Financing is a very important aspect of getting a home sold. Mortgage Associates can assist with marketing flyers, legal and appraisal fees, and unique mortgage strategies to differentiate your home. A good Mortgage Associate has the ability to help increase the number of people for whom your home might be a fit. More prospects equal higher sales prices.

Mortgage Associates will also ensure that you are able to clear the title of your home should it sell. Your property value may have declined since you originally purchased your property or you financed with either 100% financing or perhaps a 40 year amortization. Potentially there may not be sufficient proceeds from the sale of your property to pay the penalties or fees for an early payout of your mortgage. This is something you should know before you list your home. A Mortgage Associate can assist you with calculating any penalties and recommending the right strategies to sell your home with no last minute surprises to ensure that you can provide a clear title to the buyer.

And finally, your Mortgage Associate knows that most home sellers become home buyers. They will assist you with a pre-approval so you can move into your next home with ease.

Both your Realtor® and Mortgage Associate on your team are committed to the highest level of advice and integrity. Any questions, just give us a call at (306) 244-7755 or email to devinandwes@yourmortgagelink.ca.

- Courtesy of The KCM Blog

Tips for Moving during the Holidays

noreply@blogger.com (Your Mortgage Link) — Wed, 12 Dec 2012 14:05:00 -0600

Moving during the holidays is not the most convenient time, but moving disrupts routines any time of the year. If you’re scheduled to move over the holidays, celebrating will definitely be different than other years. It may take some extra effort, but you can still make it memorable. No matter which end of the move it falls for you—in your old place or settling into the new house—here are some moving tips:

Acknowledge the sentiment. The holidays trigger all kinds of emotions for people and when you add moving to the mix, there’s a large emotional component to the process. Leaving your old home with its memories can be tough. If you have children, you want to acknowledge that they will be missing their “usual” holiday, but keep an upbeat attitude. You can set the tone.

Maintain some traditions. Involve the whole family in planning some holiday activities. If you normally bake cookies, find a way to make that happen even if you forgot where you packed the cookie sheets! Locate holiday decorations when packing your old house and be sure to set aside a box, including ornaments, wrapping paper, etc. If you normally put up a tree, make room for a small one with a few decorations.

Plan some outings. Plan some time away from those moving boxes. Drive around the neighborhood to look at lights and decorations, go to a holiday craft fair or have a holiday meal at a favorite restaurant. If you have extended family you’ll be leaving, make sure to schedule some time with them.

Confirm moving plans. Things get rushed and busy during the holiday season. People take vacations and may be hard to reach. Be sure to call and confirm your move date with the movers or rental truck company. Make sure your utility companies know when to turn off or turn on your utilities.

Don’t forget to sit down, take a few deep breaths and make time to enjoy the holidays!

Merry Christmas and Happy Holidays!

Your Mortgage Now

(306) 244-7755

devinandwes@yourmortgagelink.ca

Help the Planet, Help Your Wallet

noreply@blogger.com (Your Mortgage Link) — Tue, 20 Nov 2012 12:24:00 -0600

CMHC Green Home

Energy-Efficient Housing Made More Affordable with Mortgage Loan Insurance

Did you know, more than 17 percent of the energy consumed in Canada is used to run our homes? Buying an energy-efficient home or making energy-saving renovations can offer big savings. A 10% CMHC mortgage loan insurance premium refund, and a premium refund for a longer amortization period (if applicable) may be available when you use CMHC insured financing to purchase an energy-efficient home or make energy-saving renovations.

CMHC has added environmentally friendly features to the Mortgage Loan Insurance it offers. If you use CMHC insured financing to buy an energy-efficient home, purchase a house and make energy-saving renovations or renovate your existing home to make it more energy-efficient, a 10% refund on the Mortgage Loan Insurance premium, and a premium refund for a longer amortization period (if applicable) may be available.

The Government of Canada actively promotes energy conservation and initiatives to reduce greenhouse gas emissions that contribute to climate change.

CMHC Green Home flexibilities were originally introduced in 2004 to encourage consumers to consider energy-efficiency in their housing choices and make the purchase of energy-efficient homes or energy-saving renovations more affordable. Since this began, more than six million dollars in premiums have been refunded to Canadians.

For most people, the hardest part of buying a home — especially a first home — is saving the necessary down payment. To help, CMHC offers lenders Mortgage Loan Insurance, which allows you to buy a house with a minimum down payment of 5%. Offered through most financial institutions, this simple solution has enabled millions of Canadians to realize the dream of home ownership.

CMHC made dreams of home ownership easier to obtain by allowing qualified home buyers to use additional sources of funds for down payments such as a loan or lenders' cash back incentives.

Thinking of Buying or Building Green? Maybe you already have a home and want to renovation to make your home Energy-Efficient. For all the details on how this can apply to you, visit CMHC’s website: http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_008.cfm

For the BEST Rates in town to finance your mortgage, visit our website www.yourmortgagenow.ca or Call us today! (306) 244-7755 – We can help you get into a new home, conserve energy and make a difference for our planet, and along the way WE HELP SAVE YOU MONEY!

Need Some Design Inspiration for Your Next Home Project?

noreply@blogger.com (Your Mortgage Link) — Tue, 13 Nov 2012 11:30:00 -0600

If you've been wondering how to paint an open-concept home, or are looking for kitchen cabinets that inspire, you might want to check out Sarah Richardson's (of HGTV fame) webisode series.

While Richardson is typically known for scouring flea markets and refurbishing vintage finds, this series of webisodes focuses on remaking a home with products you can find at a Big Box store. The webisodes started airing October 19th, and a new one will appear on Richardson's site every week until December 21st.

Happy Decorating!

Pay Your Mortgage like it’s 2007. You'll Save a Pile of Money

noreply@blogger.com (Your Mortgage Link) — Mon, 5 Nov 2012 14:01:00 -0600

Just 60 short months ago, mortgage rates were double what they are now. That means payments on a 25-year mortgage of equal size were 36 per cent higher than today.

Since then, the amortization gods have slashed mortgage rates and payments. Compared to interest costs in 2007, today’s rates would save you $101,700 if projected out over 25 years on a $200,000 mortgage.

If you look at the payments on a mortgage that size, they’ve tumbled from $1,284 in 2007 to $945 today. (To put that in perspective, the payment at zero per cent interest would be $667.)

It’s clear that the savings potential of today’s rates is phenomenal. The question is: are Canadians taking advantage of these record-low rates?

The answer? Not enough. About 60 per cent of mortgage holders make only their minimum mortgage payment, finds the Canadian Association of Accredited Mortgage Professionals.

But what would happen if people made their payments at the 2007 level?

If applied today, that higher $1,284 payment would knock an extra $21,900 off your principal in five years. You would also save $1,600 in interest and retire your mortgage in two-thirds the time.

Switching to bi-weekly 2007-style payments - $642 every two weeks in this example - means you would pay off that 25-year mortgage in 14.8 years. The five-year interest savings would jump to $2,100.

To replicate interest savings like that, you’d have to chop a quarter per cent off your interest rate. And negotiating another quarter-point reduction on a deep-discount rate can be tougher than sucking sap through a straw.

“Canadians have a legacy of focusing on rates as the primary means to save on the cost of borrowing,” says David Stafford, managing director of real estate secured lending at Scotiabank. “That’s where all of the time and effort is being invested.”

“But the actual cost of a mortgage is based on how much you borrow, at what rate, and for how long,” adds Mr. Stafford, who inspired the calculations above. “And with rates well below recent historical averages, the best way to save money on a mortgage is to use today’s low rates to shorten the amortization.”

Of course, paying extra isn’t easy or everyone would be doing it. Some folks are running too close to the financial edge to bump up payments. Others have more pressing needs for their extra cash. And the rest could pay more if they wanted to, but choose not to.

Looking forward, the leaves in my teacup suggest we won’t see 2007-style rates again for a while, but I can’t definitively predict that. Nor can anyone else.

What we do know is that rates are cyclical. They move like a roller coaster. Right now we’re at the bottom of a valley with an incline off in the distance.

When rates ride the escalator back up, the ascent could theoretically take us back to 2007 levels. So prospective mortgage holders need to ask themselves: Would I buy the same price house if I had to make payments that were 36 per cent higher? Would I get the same size mortgage if rates were double today’s rates?

If the answer is no, they probably shouldn't be in that mortgage today.

If you’re a mortgage holder with other high-interest debt or higher returning investments, or you have no emergency fund, you may want to divert your cash to those objectives. Otherwise, if you want a respectable low-risk return, increasing your mortgage payments fits the bill.

“An extra dollar paid at the beginning of a mortgage is a dollar you’re not going to pay interest on for the next 20-30 years,” Mr. Stafford says. “And making a payment that’s more reflective of historical rates also has another added benefit – you future-proof yourself from payment shock if rates are back at six per cent five years from now.”

Robert McLister

Special to The Globe and Mail

It's Movember - Time to Make A Difference!

noreply@blogger.com (Your Mortgage Link) — Thu, 1 Nov 2012 12:42:00 -0600

Join to make a difference in Men’s health by signing up with
Your Mortgage Now’s Stache Team!

This year, we honour the men who have grown before us and pay respect to the simple truth “knowledge is power, the moustache is king.”

As our forefather's always knew, the moustache is the mark of a man. Today, it is a man's ribbon, a symbol to spark conversation and help change the face of men's health.

We are committed to make a difference by helping to raise vital funds and awareness for prostate cancer and male mental health.

To highlight the importance of what we are doing, take a look at these statistics:

• 1 in 7 men will be diagnosed with prostate cancer in their lifetime
• This year 26,500 new cases of the disease will be diagnosed
• 1 in 5 men will experience a mental illness this year

Take part either by growing one Dirty Son of a Mo as a Mo Bro, or by spreading the knowledge and supporting all Mo growers. You can also help out by making a donation on our team page. The size of which isn’t important, every little bit helps.

To join the Your Mortgage Now’s Stache Team go to:
https://www.movember.com/ca/register/details/team_id/547133

If you'd like to help change the face of Men’s Health, please make a donation here:
http://mosista.co/yourmortgagenow

To find out more about what you'll be helping to fund please visit:http://ca.movember.com/about/funding-overview/

Pros & Cons of a 5 Year Fixed Mortgage

noreply@blogger.com (Your Mortgage Link) — Thu, 25 Oct 2012 16:11:00 -0600

The shorter the amortization the larger the monthly payments. Under the right circumstances, a five-year fixed can be an excellent product that brings very favorable interest rates with it.

Fixed-Rate Mortgage Basics

One of the best things about fixed-rate mortgages is that you can count on your interest rate. Borrowers of variable-rate, or adjustable-rate, mortgages (ARMs) are vulnerable to potential increases in rates. The downside to a fixed-rate product is that if market rates drop your rate still remains the same.

Larger Monthly Payments

Monthly payments with a five-year mortgage are larger than for the same loan amount spread out over a longer period of time. If you had a loan for $150,000 at 5 percent, each monthly payment would be about $2,830. The same loan spread out over a 15-year term would have monthly payments of $1,182, and over a 25-year term you’d pay just $872 each month. The big question is whether or not you can really afford that larger payment. The lender will require that you have a higher income in order to qualify to make larger payments.

Lower Interest Rates

When it comes to mortgages, the lowest rates usually come for the shortest loan terms. This is probably the single best thing about a five-year mortgage. The difference could be 1 percent or more for a five-year as compared to a 15- or 25-year product. It’s a matter of simple math: the lower your interest rate, the less you pay in the end.

Life-of-Loan Costs

Over the life of the loan the savings for a five-year loan are great. That $150,000 mortgage at five percent would cost you a total of $289,883 in principal and interest if you took 25 years to pay it. That’s nearly double the original home cost. Paid over 15 years the total cost would add up to $213,514. If you paid it off in five years, the total cost would be $169,841, not that much more than the original loan amount.

Who Should Get a Five Year Mortgage

For anyone who can afford to make the higher monthly payments, a five-year fixed mortgage is an excellent option. Refinancing to a shorter term is a great option for someone who’s been in a house a few years already. Shorter mortgages are also a good product for someone who is a conservative investor and would prefer to pay off his home rather than to use the extra cash toward other investments.

Who Should Not Get a Five Year Mortgage

Many people argue that if you can secure a low rate mortgage, you’re better off with a longer term that will free up more money every month to invest elsewhere. A disciplined investor who will actually follow through with the alternative investing plan may be able to rationalize this strategy, but if you’re prone to temptation and might just spend the extra money on foolish things, you’re better off paying the mortgage down. Few investments come with any guarantees, but you can count on the lower mortgage interest rate that comes with a shorter term.

“Mortgage” means “Death Pledge”... Wait.. What?!

noreply@blogger.com (Your Mortgage Link) — Tue, 16 Oct 2012 15:06:00 -0600

Strangely enough, the root word mortgage comes from the French word "mort", which means "dead", and "gage" from Old English, which means "pledge".

In the 1500's, this term was used in the doubtfulness of whether or not the mortgagor would pay the debt. The word does not refer -- as it may seem -- to the debtor's metaphorical death, in taking on such a large loan that usually takes many years to repay. Instead, the "mort" part of the word signifies that the agreement "dies" when the debtor has repaid the creditor for the full amount of the mortgage. If the mortgagor did not pay, then the land pledged as security for the debt was taken away.

Nowadays, the term mortgage is used as a term for purchasing a property. Mortgages all have a term representing the length of time before your home is paid off and a rate which determines the principal and interest payment that will be required to be paid during this term.

If you are unable to make your mortgage payment for several months, you could lose your home. If you are ever in this situation, there are ways to save yourself from foreclosure. Contact your mortgage broker or lender for more information.