Frequently Asked Questions
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| How do I take equity out of my existing home for personal reasons? Are there any restrictions? |
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| Provided you have a minimum of 10% equity in your house (based on a current appraisal on your property), we may be able to renegotiate your mortgage so you can take out equity to buy a new car, home renovations, etc. Some restrictions apply.
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| What are the advantages in using a mortgage broker? |
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| A broker can save you not only time, but also heartache. With the experience and knowledge gained by specializing, the broker will ask you all the right questions to present your application in its best possible light. By giving the information to the broker, he then can present it to the lender in a form the lender will accept, in turn making the mortgage application experience less stressful.
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| What are the benefits of applying for a preapproved mortgage? |
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| A preapproved mortgage is a preliminary approval of your application to a maximum amount at a fixed rate. It tells you exactly how much you can afford to spend on your home and what your payments will be. Your rate is fixed for a certain period which means that if rates go up during that period, you keep your fixed rate but if they go down at time of your purchase, you get the lower rate.
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| What is mortgage default insurance? |
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| If your downpayment on your purchase is less than 25% of the value of the property, your mortgage must be insured against payment default by a government agency or approved private insurer. You will have to pay a one-time premium which can be added to the principal amount of your mortgage.
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| How can I pay off my mortgage faster? |
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There are a couple of options available to you:
- take advantage of all prepayment privileges allowed by your lender,
- make accelerated payments as frequently as possible, i.e. weekly instead of monthly,
- choose the shortest possible amortization period.
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| What does a mortgage broker do? |
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| A mortgage broker works on your behalf to provide insight and knowledge with respect to many lenders products and policies. He/She is aware of market trends and present mortgage rates and can provide you with a mortgage product best suited for your individual needs.
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| How much does he/she charge for service? |
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| In todays environment a typical mortgage broker is paid by a lender for an applicant that meets prime underwriting guidelines. The costs to the borrower is usually zero but there are cases where a fee will be payable. Borrowers will be made aware of costs if they will apply. |
