What is a mortgage?	What is PMI mortgage insurance?	What are the terms for mortgages?
How can I save money on my mortgage?	May I refinance my mortgage?	Why is mortgage pre-approval important?
What documents are required for pre-approval?	Why Use A Mortgage Broker?	What are the other costs of a home purchase?

What is a mortgage?

A mortgage is loan you use to purchase a home-or some other piece of property. The amount you borrow is called the principal and each mortgage payment is a combination of principal and interest. The property remains in the possession of the borrower, but it may be re-claimed by the lender if the loan and interest are not paid as agreed.

Why Use A Mortgage Broker? -

A mortgage broker is an independent real estate financing professional who specializes in the origination of residential and/or commercial mortgages.

Mortgage brokers have the ability to obtain the best possible rate for your situation by shopping all approved lenders. Since the broker works with many different national lenders they are not forced to recommend one set of loan programs to you but can seek out many different options that are offered. Brokers do the loan shopping for you. When you apply for a loan with a mortgage broker you are effectively applying for a loan with all the lenders the mortgage broker is approved with.

Mortgage brokers obtain rates at wholesale. It costs no more to do business with a mortgage broker. In fact independent surveys have shown that in many cases the fees charged by a broker are less and the interest rate obtained is lower than if the borrower went directly to the lender. Mortgage brokers work on a contingency basis. They are not compensated until the loan closes. (Be aware. Some mortgage brokers charge a non-refundable up-front application fee. We do not!)

When working with a mortgage broker only one credit report is used. If you were to apply to multiple lending institutions for a mortgage, each lender would do a credit check. This may lower your credit score. A lower credit score could mean you may not qualify for the best interest rate possible with any lender.

A mortgage broker deals exclusively with mortgages. By combining professional expertise with access to many different wholesale lenders and hundreds of loan products, a broker provides consumers the most efficient and cost-effective method of offering home financing options while still providing individualized attention tailored to the consumer's needs and wants.

A mortgage broker represents you in obtaining financing that best fits your specific financial goals.

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What is PMI mortgage insurance?

If the amount of your mortgage is more than 80% of either the purchase price or the appraised value of the property (whichever is lower), the mortgage is considered high ratio. To comply with legal requirements, you must purchase mortgage insurance. An application fee and an insurance premium also apply, which you can add to the mortgage amount. More information is available here.*Some conditions apply. For further details and the   conditions required, please contact us.

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What are the terms for mortgages?

Mortgages are available with a fixed rate of interest for various terms, ranging from six months to 10 years, with payments amortized over periods of up to 40 years. We also offer variable rate mortgage options. Call or email us for more information.

May I refinance my mortgage?

Based on your financial situation, we can pre-approve a maximum amount of mortgage financing at a specific rate for a period of 60 days (90 days for new construction). You will know, without obligation, the amount you can borrow, the interest rate, and your payments. To apply or for more information Call or email us for more information.

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Why is mortgage pre-approval important?

Mortgage pre-approval is important for a number of reasons:

• It determines the maximum mortgage loan for which you qualify.
• It allows your realtor to show you a range of properties in your price range.
• It allows your realtor to make a realistic offer on your purchase, and saves time in the negotiation process.
• It holds the interest rate for a period of 60 days (90 days for new construction), guarding you against rate fluctuations.
• It provides peace of mind during the home-buying process.

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What documents are required for pre-approval?

• Income confirmation. This will be used to determine how large a mortgage payment you can handle. Income confirmation documents can include a letter from your employer, W2, financial statements.
• Down payment confirmation. This will be used to confirm the difference between your proposed purchase price and the amount of the mortgage loan. Your down payment can include saved funds on deposit with your financial institution, a gift from an immediate family member, and/or equity from the sale of another property.
• Credit application. The credit application will provide us with information we need assess your mortgage request and net worth. It will also let us request a credit bureau check.
• Credit confirmation. We'll do a credit investigation and confirm that your credit rating is acceptable for a mortgage.

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How can I save money on my mortgage?

The easiest way to reduce the interest costs on your mortgage is to pay it off sooner. Here's how:

• Pay weekly or biweekly. Making your mortgage payments earlier and more frequently through weekly or biweekly payments can save on interest compared with monthly payments.
• Choose a shorter amortization period.     

Example
This comparison shows how you can reduce your amortization period and save on interest by choosing a more frequent payment schedule.Mortgage amount of $100,000 at 7.0% interest, calculated on a declining balance:

 

	Monthly Payments	Weekly Payments
Payment per period	$700.42	$175.11
Total annual payments	$8,405.04	$9,105.72
Total interest	$110,126.00	$86,667.26
Amortization period	25 years	20.5 years

 

In this example, weekly payments can save you $23,458.74 and almost 5 years on your mortgage.

• Prepay. You can prepay up to 5% of the original principal amount of your mortgage anytime during each year of the term of your mortgage-without penalty or an administration fee.
• Increase your monthly payments. Once per year, during the term of your mortgage, you can increase your monthly mortgage payments up to 100% of the monthly payment originally established for the current term of the mortgage-without penalty or an administration fee.
• calculators

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What are the other costs of a home purchase?

The other costs associated with the purchase of a home may include the following:

• Inspection fee-required if a professional is to inspect the house prior to the completion of the purchase 
• Appraisal fee-required to ensure the property is acceptable security for the mortgage 
• Legal fees-includes lawyer's or notary's fees plus any disbursements required to transfer the property and register the mortgage 
• Survey certificate fee-required to ensure the house is positioned on the lot within legal restrictions 
• Tax adjustments-you will be responsible for paying the taxes for the portion of the first year that you own the property 
• Mortgage insurance-if the down payment is less than 20% of the purchase price, an insurance premium on the mortgage amount is required (it may be added to the mortgage amount) 
• Home insurance-arranged to cover the property in the event of fire or other damage
• Mortgage protection insurance-optional, but is available to cover the mortgage amount in the event of death, disability, loss of employment, or critical illness 
• Moving costs-vary depending on how far you're going and who is helping you move

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