Mortgage Heads Up

As the spring season has finally started, people are looking to move up to accommodate family or they are downsizing as the family departs. During this period folks start to look at mortgages there are many things to consider. First is do you use your bank or try a mortgage broker. Each have their pluses and minuses, so research your best option, I'll comment on this option in a later post. Second... is how much do I mortgage and for how long. Once you have these questions answered you need to look at some of the small print. Most of the mortgages have the ability to make payments besides the normal ones, also there are annual payments to lower the principal which shortens your overall mortgage life. As the time progresses there may be a need to pay the mortgage the off and most financial organizations have penalties that would make an early closure of the contract cost you dearly. The main method in use is that the interest you would pay for the remainder of the contract is your penalty, so they ensure that they get what they expected. Most companies do lessen the penalties as you near the end of the term. Ask many questions and make sure that you know what is in the contract. You need to look after yourself and your money.

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Randy Stevenson

Randy Stevenson

CENTURY 21 Acclaim Realty Limited
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