Mortgages - Look beyond the rate

.Mortgage rates are low right now but if recent reports are accurate, they may be going up sooner rather than later. While a low interes rate is always good, there are other importent factors you should consider befor signing on the dotted line.

A flexible mortgage can save you money,look for a mortgage that includes the option of changing payment frequency or of increasing the amount of your monthly payment without a fee.By making accelerated and/or lump-sum payments you'll pay of your mortgage faster, saving on interest costs. Mortgage lender usually allow a yearely lump-sum payment of up to 15 per cent of the original principal amout.

A portable mortgage can save you money.

Mortgage usually have an amotization period of 25 years, with a typical mortgage term of 5 years, but you can get onethat offers the option to move that mortgage from one property to another. If you think your new home will not be your last home, mortgage portability is an option youshould consider.

An assumable mortgage can sve you money: another mortgage option to look for if you intend to move on is assumability, which allows you to transferyour existing mortgage to the new owner of the property you've sold-saving on prepayment charges for ending your mortgage befor it's maturity date.

A re-advance option can help if you unexpectedly needadditional funds. This option allows you to obtain a readvance of funds up to the original registred amount of your exising mortgage.

beware of low rate promotions: Advertised promotions for extremely low mortgage rates often come with strictrepayment options, and steep repayment charges if you need to exit the mortgage term prior to its maturity date.

Cash back mortgage can mean Cash back to the lender. These mortgages offer a cash rebate ( usually 3 to 5 per cent of the principal amount ) but if you  don't stay with the lender for the full amortization term, the cash back amount may need to be paid back to the lender either in part or in full.

Advice can be valuable: Don't jump into a mortgage. Instead, work through you mortgage requirement with a professional advisor and legal advisor to ensure you get the best mortgage product for you financial needs.