Mortgage Guide

TJR asked:


I’m looking for a better home loan mortgage rate than I currently have with my bank. So I am seriously considering refinancing. Does anyone know where I can currently check for the lowest refinance home mortgage rates?

Cecil

RateSupermarket.ca asked:


In a nutshell, a mortgage broker acts as the ‘go-between’ a mortgage borrower (you) and the lender (typically the big Canadian banks).  Mortgage brokers act on your behalf offering their expertise and contacts for free, and receive their commission from the lenders only once a mortgage is arranged.  There may be charges for their services if you have an exceptional situation, such as very poor credit, as they may need to spend more time on your application.
Mortgage broker’s are able to get the best rates for homebuyers and their rates are typically discounted when compared to the big bank’s posted rates because they arrange so much volume for the lenders (almost $50B last year).  As a result, many times the banks and other lenders compete amongst themselves to offer the broker the best rate in order to secure their business.  Many deal with over 65 lenders, and this is the reason why they can get the best rate for almost any person’s situation.
The residential mortgage market is extremely lucrative and competitive, as there were $191B worth of mortgages approved last year by 80+ lenders.  As a result, mortgage brokers are becoming more popular as more people are turning to them to find the lowest mortgages, representing an estimated 25-30% of mortgages being arranged according to Jim Murphy, president of the Canadian Association of Accredited Mortgage Professionals (CAAMP).
Many people aren’t sure where brokers actually source the mortgages from.  A recent report by Canada’s leading mortgage systems supplier, showed that mortgage brokers secured home loans through the following channels through their network in April 2008:
·         Banks:                    50.68%
·         Mortgage Banks:      41.92%
·         Sub Prime:                4.25%
·         Credit Unions:   3.14%
The actual mortgage rate arranged by the broker, could be influenced by many factors, some of which are:
·         What type of mortgage (open or closed) are you looking for?
·          Is it a fixed rate mortgage or variable rate mortgage (adjustable rate mortgage ARM)
·         Is this a single home mortgage loan?
·         Or do second or third loans exist?
·         How long do you want the mortgage amortized over?
·         Is this is a refinanced mortgage?
As is the case with brokers in other industries such as insurance, mortgage brokers are generally former employees of the lenders such as banks. As a result, they know the ins and outs of the industry, who to contact and where to find the rates across Canada.  If you’re looking for help arranging your next mortgage, a mortgage broker, may just be a sound option.

Raymond

Keith George asked:


Very low mortgage rates have been instrumental in increasing the purchasing power of millions in the US, Europe and around the world. For one year mortgage rates are on the rise and home prices leveling out. Foreclosures are becoming more common, especially in the American Midwest, but it is still on a low level. We can now expect a gradual rise in mortgage rates the coming year. The 30-year rates will likely continue to rise in the upcoming months, but should not go past 7% in the US. In Europe the 5 year interest rate is around 5-6%. So if you plan to get a fixed rate loan, you should act quickly because mortgage rates are predicted to push past 7% in the US over the next few weeks.

The second mortgage rates on high loans to value loans above 90% on real estate investment properties can come close to 20%, even if you have a very good score. It might be a good time now to refinance your home or get a mortgage loan with attractive rates. Search the Internet and you will find a lot of online companies offering low mortgage rates all over the country.

A survey that was performed recently shows that there is a increase of foreclosure rates and delinquent mortgage payments across the country. Also lenders, just like consumers, feel the effects of a slowing economy and rising mortgage interest rates. No wonder we hear lots of discussions about rising mortgage interest rates.

A forty-year mortgage rates offer lower monthly installments, which suits the needs of first time home buyers as well as borrower who otherwise do not qualify for any other option. Of course there are many factors that can affect the mortgage rates but mortgage rates should be relatively stable for the foreseeable future.

Some persons prefer to have a fixed mortgage payment to maintain their peace of mind. Then you should have it and if you took the loan a couple of years ago you certainly made the right choice. For others there are a wide range of options currently available.

With an adjustable rate, the rate of interest is linked to factors like the Prime Rate. There are also other variations of the adjustable interest rate. As said before, if the market appears to be on a longer rise, locking in a fixed rate now can save you money in the future.

It is impossible to mention the rates individually, as there are a wide number of factors and statistics involved and they vary from day to day. It also depends on when you happen to read this article. Often the credit companies are also skeptical in offering the forty-year mortgage rate option to their customers as there are other existing ways of reducing monthly payments.

Searching on the Internet, using lowest mortgage rates as keyword, will provide you detailed information on Compare Low Mortgage Rates, Lowest Commercial Mortgage Rates, Lowest First Mortgage Rates, Lowest Fixed Mortgage Rates and more. That is an excellent way to get the basic facts for the time being and will give you a better understanding of which plan to choose.

Robert