When someone takes out a mortgage from a bank or another lending institution the lender will sit down with the borrower and they will layout for them the amount of periodic payments they feel is correct for the life of the loan. So for example, with a 5 year fixed rate mortgage the minimum payment might be bi-weekly and a little larger than what one might find with a 10 year mortgage. Each of these periodic payments (bi-weekly, monthly, etc.) must fully cover the interest and also partly pay-off a proportion of the principal for the mortgage in order for that mortgage to be in the amortization process and to eventually amortize completely. This is your ultimate goal as a mortgage borrower to eventually pay off this loan, or for the sake of this article, amortize your mortgage and end the term of the loan; making you a much happier and much less in debt person.
Friday, December 18, 2009
Tuesday, December 15, 2009
Mortgage Amortization
The whole process of amortization can get a little complicated and might be hard for one to understand all of the intricacies of amortization accounting on the whole without the help of a mortgage broker. However, the one thing that mortgagees need to know is that the mortgage amortization process starts off slowly. In fact, in the earlier years of your loan the bulk of your payments will mostly be applied to paying off interest with only a small amount going towards paying off the principal. Then over time as the principal itself gets paid down the interest will therefore decline and then a result of this is that more of your mortgage payments go towards paying off the principal. Resulting in greater mortgage amortization as time goes on and also increasing your equity in the house.
Monday, December 7, 2009
What is a Mortgage Agent?
Well, a mortgage agent (aka a mortgage broker) is a mortgage professional whose job it is to understand mortgages in and out and to match the proper mortgage with a customer’s needs. A mortgage agent will work to understand you and to match your mortgage needs, seeking out the best mortgage option for your situation, and they work to guide you through the lending process; a huge bonus for those first time home buyers and mortgage recipients.
A mortgage broker does not work for a specific mortgage lending institution or bank. Instead a mortgage agent is an independent person/business member who has access to up to the minute loan rates for a wide variety of lending institutions allowing them to literally find the best mortgage deal for you from a number of lenders.
In the past mortgage agents/brokers were considered more of a taboo resource only used by people with poor credit history. However, now times have changed and many Canadians are learning that they can benefit greatly from the professional touch of a mortgage agent.
When looking at the DOLLARS remember that a great investment advisor can help to make you thousands of dollars but also remember that a great mortgage agent WILL save you thousands of dollars by helping you get the best deal on your mortgage.
So when it comes to your mortgage be smart and realize that this is a form of investment and just like when it comes to the rest of your portfolio don’t be afraid to trust a mortgage professional like a mortgage agent just like you would any other investment advisor to help you make the right choice, the best choice.
In the past mortgage agents/brokers were considered more of a taboo resource only used by people with poor credit history. However, now times have changed and many Canadians are learning that they can benefit greatly from the professional touch of a mortgage agent.
When looking at the DOLLARS remember that a great investment advisor can help to make you thousands of dollars but also remember that a great mortgage agent WILL save you thousands of dollars by helping you get the best deal on your mortgage.
So when it comes to your mortgage be smart and realize that this is a form of investment and just like when it comes to the rest of your portfolio don’t be afraid to trust a mortgage professional like a mortgage agent just like you would any other investment advisor to help you make the right choice, the best choice.
Friday, October 31, 2008
Edmonton Mortgages and CAAMP certification
If you are an Edmonton resident looking to obtain an Edmonton mortgage, your first step should be to choose a reliable, ethical and resourceful mortgage broker. Easier said than done, right? Especially for first time, inexperienced home buyers.
So how exactly do you know that the mortgage broker you are looking at is qualified, educated, experienced, and resourceful?
Answering the above question may be easier than you think, thanks to the Canadian Association of Accredited Mortgage Brokers, better known as CAAMP. CAAMP is a national association dedicated to educating and representing the Canadian Mortgage industry. CAAMP membership has well over 10,000 members. Ask your prospective Edmonton mortgages broker if they are one of CAAMP’s members.
According to CAAMP, if your mortgage broker is CAAMP certified, that means that they:
1. Are a CAAMP member in good standing and abide by the CAAMP Code of Ethics.
2. Have a minimum level of experience in the mortgage industry, demonstrate proficiency
AND provide proof of experience using Option 1 or Option 2 below
Option 1 - Proficiency Course
• Provide proof of at least two years of experience in the mortgage industry AND
• Provide proof of successful completion of the CAAMP Challenge Exam OR a CAAMP approved proficiency course.
Option 2 - Five Year Rule
• Provide proof of five or more years of experience in the mortgage industry AND
• Provide letters or e-mails of reference from two AMP members in good standing. The
References must recommend that the applicant be granted the AMP and may be included as one of the documents used to provide proof of experience.
3. Complete CAAMP's mandatory pre-accreditation course, Ethics and Responsibilities for Mortgage Professionals, either online or in seminar format
The above information is an excerpt from this CAAMP PDF
So how exactly do you know that the mortgage broker you are looking at is qualified, educated, experienced, and resourceful?
Answering the above question may be easier than you think, thanks to the Canadian Association of Accredited Mortgage Brokers, better known as CAAMP. CAAMP is a national association dedicated to educating and representing the Canadian Mortgage industry. CAAMP membership has well over 10,000 members. Ask your prospective Edmonton mortgages broker if they are one of CAAMP’s members.
According to CAAMP, if your mortgage broker is CAAMP certified, that means that they:
1. Are a CAAMP member in good standing and abide by the CAAMP Code of Ethics.
2. Have a minimum level of experience in the mortgage industry, demonstrate proficiency
AND provide proof of experience using Option 1 or Option 2 below
Option 1 - Proficiency Course
• Provide proof of at least two years of experience in the mortgage industry AND
• Provide proof of successful completion of the CAAMP Challenge Exam OR a CAAMP approved proficiency course.
Option 2 - Five Year Rule
• Provide proof of five or more years of experience in the mortgage industry AND
• Provide letters or e-mails of reference from two AMP members in good standing. The
References must recommend that the applicant be granted the AMP and may be included as one of the documents used to provide proof of experience.
3. Complete CAAMP's mandatory pre-accreditation course, Ethics and Responsibilities for Mortgage Professionals, either online or in seminar format
The above information is an excerpt from this CAAMP PDF
Thursday, October 30, 2008
Independent Mortgage Companies Offer Flexibility
There is a common misconception among the general home purchasing public that traditional lenders, such as banks, are always the better way to go. This is not necessarily true. For people from all walks of life, independent mortgage brokers are often the better way to go.
Surprisingly, most people think they are out of options. Until, that is, they decide to see their mortgage broker. Reputable independent mortgage companies have a vast network of resources right at their fingertips. It is very unlikely that these resources would be available to the average homebuyer. This vast network usually means a better power to negotiate. In other words, mortgage brokers will negotiate a great deal and offer their clients very flexible terms.
On another note, an experienced independent mortgage broker can also provide assistance outside of the realm of first time mortgages. They will also people with financing, home equity loans, investment properties, and so much more.
Surprisingly, most people think they are out of options. Until, that is, they decide to see their mortgage broker. Reputable independent mortgage companies have a vast network of resources right at their fingertips. It is very unlikely that these resources would be available to the average homebuyer. This vast network usually means a better power to negotiate. In other words, mortgage brokers will negotiate a great deal and offer their clients very flexible terms.
On another note, an experienced independent mortgage broker can also provide assistance outside of the realm of first time mortgages. They will also people with financing, home equity loans, investment properties, and so much more.
Wednesday, October 29, 2008
Calgary Mortgages May Require Tough Negotiations
If you are seeking a mortgage in Calgary, you are likely aware that there are a lot of options. Some of these options are cost effective and some are costly. Of course there is a grey area when searching for the mortgage option that is right for you. It is necessary to do your research and to be prepared to negotiate.
If you are like most Calgarians, you are busy. You have a life. You do not have time to spend hours researching your mortgage options and even if you did, are you prepared to negotiate and haggle? This is why you need someone in your corner. Someone who knows everything you need to know about Calgary Mortgages and has all possible resources at his or her fingertips.
An experienced independent Calgary mortgage broker will be able to help you immensely in the mortgage application processes because they can negotiate on your behalf with several, perhaps a hundred or more lenders.
Call a trusted Calgary mortgage broker to ensure you are getting the best possible deal available to you.
Monday, October 27, 2008
Vancouver Mortgages Are Not Out of Reach
This particular entry is aimed at the population of Vancouver who, for whatever reason, may not fit into the desirable profile of a mortgage applicant at a “traditional” lender. Not sure if you fit into this category? Maybe you are:
· New to the country / lacking a credit history
· A commission based sales person / entrepreneur
· Stuck with a bad credit history
· Recovering from a bankruptcy
As the housing prices in Vancouver and surrounding areas seem to skyrocket and banks become more cautious, many “non-traditional” borrowers are finding that mortgages in the Vancouver area are a little out of reach. I feel, however, that if you do not fall into the “traditional” Vancouver mortgages applicant category, this does not mean that you are the problem. It simply means that a traditional lending scenario many not be in your best interest. My suggestion would be to call a resourceful and experienced mortgage broker in Vancouver. He or will likely have a vast amount of viable mortgage options available to you.
· New to the country / lacking a credit history
· A commission based sales person / entrepreneur
· Stuck with a bad credit history
· Recovering from a bankruptcy
As the housing prices in Vancouver and surrounding areas seem to skyrocket and banks become more cautious, many “non-traditional” borrowers are finding that mortgages in the Vancouver area are a little out of reach. I feel, however, that if you do not fall into the “traditional” Vancouver mortgages applicant category, this does not mean that you are the problem. It simply means that a traditional lending scenario many not be in your best interest. My suggestion would be to call a resourceful and experienced mortgage broker in Vancouver. He or will likely have a vast amount of viable mortgage options available to you.
Subscribe to:
Posts (Atom)