Mortgage Broker - Saving Money Through Variable Rate Mortgages and Refinancing Strategies

It is all too common for Canadians to miss out on mortgage-related savings, whether in larger centers such as Calgary and Edmonton or smaller centers across the nation.



In fairness, most of us are simply unaware of the options and strategies that represent money saving opportunities. But with the help of a good mortgage broker, it can be easy for any homeowner to benefit from options such as variable rate mortgages and mortgage refinancing.



Variable Rate Mortgages Overview



Variable rate mortgages generally offer the lowest available rates in Canada, and a good mortgage broker will have the know-how and connections to negotiate the best rate in the nation on your behalf.



Since the variable rate mortgage adjusts as the prime rate rises and falls, your payments will adjust each month as interest rates change.



While variable rate mortgages represent the inherent risk of your payments potentially increasing, the key is to remember that:





from the start, your payments will be among the lowest available, and,

your payments could also decrease if the prime rate drops.



And should you later wish to lock in your mortgage, you can do so without penalty to any fixed rate mortgage that is equal to or greater than the remaining term on your mortgage.



There are many variable rate products available, and an experienced mortgage broker can help you decide which product may be best suited to you.



When Do You Refinance Your Mortgage?



It is not uncommon to discover that refinancing your mortgage could save you thousands of dollars.



But how do you know if the conditions are right for such savings? If the annual interest rate on your Canadian mortgage is more than 0.5% higher than the current 5-year fixed rate offered by your local mortgage broker, then it's time to consider refinancing.



Some people choose not to refinance due to the penalty and lawyers fee associated with exiting their current mortgage. But while there are upfront costs associated with refinancing, in some cases these expenses can be offset in as little as 18 months through reduced monthly payments.



And in light of the long-term savings that accumulate over the entire life of your mortgage, refinancing can prove to be a financial decision you'll thank yourself for again and again.



Here's to you saving money.

Filling Out Your Home Mortgage Refinance Application Online

There are many advantages to filling our your home mortgage refinance application online. It can be more convenient, and many online forms do not allow you to proceed unless you have filled in all of the necessary fields. Additionally, you can get an answer back much quicker in some cases, and it is nice not to have to remember all of your paperwork. But there are some pitfalls, so be careful when taking care of your home mortgage refinance application online.



Advantages to an online home mortgage refinance application



There are plenty of advantages associated with filling our your home mortgage refinance application online.



Here are some of the things that you can expect when you use your home computer and Internet connection to apply for a mortgage refinance:



ท Takes less time



ท Reminds you to fill in all necessary spaces



ท Can't submit unless everything is properly filled in (and prompts will help you figure out what you need)



ท Don't have to try to keep track of all those pages



ท Can fill out the application on your own terms, and whenever you want (no appointments)



ท Often receive an answer more quickly than with traditional banks



ท Special Internet interest rates and fee reductions may be available, saving you money



ท Many online-only refinance lenders offer home mortgage refinance loans with no points



Avoiding online dangers



Just as the Internet brings us great convenience, it can also be a powerful tool for unscrupulous crooks.



Make sure that you protect yourself before you enter the personal information needed to fill out a home mortgage refinance application online.



ท Make sure you have an Internet security program that can protect you from viruses, adware and spyware (make sure it is properly installed and working)



ท Activate your computer's firewall to deter hackers



ท Make sure that you are on a secure site by checking the address bar for the "s" after the "http"



ท Completely log off and close out of your browser window when you finish



ท Clear your browser's cache and/or history when you are done (also get rid of any cookies that might be stored on your computer)



ท Check to make sure that you are on the site of a legitimate lender

Factors Affecting Mortgage Terms, Explained

If you are planning to apply for a mortgage loan, it is important that you know the factors to consider in choosing the right term for you. Through this, you will be able to make the right choices and will lead you to finding the right arrangement for you. It is essential to find the right mortgage term for you because this will make future payments much easier. This will also help you prevent future financial problems. In order to learn how to choose the right term, you have to understand the considerations you have to make.



These are listed below: The first important consideration is the amount you are going to borrow. This is influenced by several factors. Among them is your credit score, your current income as well as your savings. A mortgage broker can help you determine how much the lender can possibly loan you. It is important to know how much you can borrow because this affects your future obligation. You should also be concerned about the interest rates. It can be fixed rate or variable rate.



Fixed rate means that the amount you will be paying will stay the same until you pay off the loan. This is not the same for the variable rate though. This type of rate can change depending on the external factors like the economy and the state of the industry. Usually, this starts low and increases over the years. Maturity is also an important factor. This will greatly affect the amount you will pay each month. Thirty-year maturity is the standard period for the United States. However, there are several plans available for borrowers as offered by the lenders.



If the maturity is longer, the monthly payment is lesser. However, the accumulated amount paid may be higher when calculated. You should also consider the insurance of the mortgage. This is required for those borrowers who have low down payments and to those who have credit score issues. The insurance will be added to the monthly mortgage fee. There are also fees and charges. There are lenders who do not charge penalties. However, all lenders will have fees you need to pay.



Some of these are negotiable but some are not. Knowing the fees you can negotiate will help you lower the payments you have to make. You can negotiate operating charges and origination fees. However, charges for appraisal and some other charges are fixed for almost all lenders. Knowing what to consider when choosing for a mortgage term is very important. This will help you find the most suitable arrangement. However, before you decide on this, make sure that you can afford it.



It is essential that you check your monthly budget. Will you still be able to accommodate additional obligations? If you will not be able to afford it, then reconsider some more affordable options. In order to avoid foreclosure issues in the future, it is very important that you can afford your mortgage. You can do this by knowing what to consider for the right term for you.

The Right Mortgage Lead For The Right Loan Officer

If you are a mortgage agent or accommodation administrator on the bazaar for mortgage leads, you accept to aboriginal adjudge which mortgage advance is best for you.



For starters, you accept to aboriginal actuate what your account is. If it is not actual much, you may wish to accumulate an eye out for the mortgage advance companies that accept low minimum deposits forth with some chargeless extra's such as filters.



Here are a few altered mortgage advance blazon scenarios.



There is the absolute time mortgage advance which can be purchased fresh. Typically, these mortgage leads are hot off the columnist and should be no added than a few hours old if you acquirement them.



Also, these types of mortgage leads should be acquired by the mortgage advance aggregation through web sites they own and operate. Otherwise, you may wish to catechism the bloom of the lead.



There are aswell age-old mortgage leads and these types of leads can be purchased in aggregate at a abatement for as low as pennies per mortgage lead.



However, if affairs in bulk, you are arena a numbers game. You should not apprehend a bang douse on every mortgage lead.



For instance, if you buy one hundred leads at fifteen cents per lead, you should not apprehend to yield added than three applications from this, but your acknowledgment on investment will be great!



Basically, the blazon of mortgage advance you wish to buy is up to you as able-bodied as the access you wish to take. But remember, it is important to do your appointment and analysis the mortgage advance aggregation you are considering.



Doing your appointment cannot alone save you money but it can accomplish you money as well.

Why Lenders Are Not Your Friends - Part 1

Copyright ฉ 2006 Ed Bagley



The next time you go borrowing, and your friendly banker smiles as you walk into his office, be aware that you may be snookered by someone not worthy of your trust. If your banker is an attractive woman, then you are even more susceptible.



I have grown over the years to appreciate a certain breed of bankers as one of the lower life forms that inhabit planet Earth. What I am about to share with you is even more true of certain mortgage brokers, secondary lenders and financial predators.



They operate as sleazy parasites under the guise of helping the least credit worthy consumers who have virtually no savvy in financial matters.



Rather than pick on the worst of this collection of lenders who will help relieve you of your money without any conscience, I have targeted bankers. Before the banking industry was deregulated there were many people who considered bankers worthy of some trust and admiration. Those days are over.



Bankers still enjoy the best reputation (such as it is) among these lenders, but they have no problem patting you on the shoulder while picking your pocket and telling you how much they have helped you.



I do not intend to indict the entire lending industry, just 95% of it. Here is an example:



My 24-year-old son wanted to refinance his first mortgage and was about to go to a leading lender in the market to look at its loan proposal. I decided to tag along because I know how lenders operate, especially when dealing with younger clients and senior citizens who have not handled the finances in their family.



His present loan had a principal balance of $123,773 with 7.458% interest at a 30-year fixed rate.



The proposed re-fi was for $134,999 with 9.9% interest (10.28% APR) at a 30-year fixed rate. The re-fi would cover the $123,773 principal balance due and provide a $10,409 home equity loan. The lender was actually smiling when he outlined what a good deal this was for my son.



I had coached my son to simply listen to the proposal, commit to nothing, take the paperwork with him, and tell the lender he would study the proposal and let the lender know if he wanted to proceed.



Once away from this flytrap I took my son to lunch, and we discussed the great deal he was given.



First, I had him look at the 3% discount fee on the Good Faith Estimate of the closing costs. (The discount fee is the amount you are paying for the privilege of getting the loan.) The discount fee was listed at $312.



What the lender was not telling him was that the 3% discount fee was figured on the $10,409 home equity loan and not on the $134,999 for the total loan which was $4,050, a slight difference of $3,748 in their favor.



If you called the lender on this discrepancy, he would probably say, "Oh, you're right, that's a mistake.



That's the figure for the home equity loan. Jeez, I'm sorry."



When the day comes to close the loan, you see the bloated figure and object, and then the lender multiplies the $134,999 loan times 3% and viola, it comes up correct. You are dazed and confused, feel under pressure, want to get this over with and sign on the dotted line. This happens every working day in America when loans are closed.



Long after you are gone, the lender is quietly snickering, counting up the additional funds he will earn, and welcoming the next dumb bunny who comes through the door while you will be stuck with making payments for 360 months on a lousy loan.



For the uninitiated, there are more real surprises at loan closings in America than when opening gifts on Christmas morning. One client of mine went to a loan closing and learned that $10,000 had been added to the loan closing costs without prior notice; he thankfully got up and left.



Always remember that for every liability you have, you are someone else's asset. For every liability-such as a mortgage, credit card, car loan or school loan-you are an employee of the company lending the money.



If you take out a 30-year mortgage loan, you have become a 30-year employee of the company which lends you the money. This is a very sobering thought when you are paying attention, as you should be. I am not talking about anything important in this article, just your financial health.



Part 2 of this article will take the financial details of the loan apart and show how not taking the loan will save my son $157,495.

Using The Web For Mortgage Leads

ÂOne of the most useful tools when looking for mortgage leads is the Internet. Instead of having to take the time to call financial institutions to inquire about their current offerings, you simply use the search engines that are on the web. Finding mortgage leads on the web will save you a great deal of time and put more information in front of you than simply making phone calls one at a time will do. Searching for mortgage leads on the web can make the difference between being able to afford the home of your dreams and having to give it up.



 Many websites, in addition to publishing their current interest rates, also have a payment calculator for the borrower's convenience. With this handy tool, you can get an idea how much your mortgage payments will be on the home you are considering, and thus know if you need to find something less expensive or wait until you have more money for a down payment. Another way using mortgage leads on the web can save you time is that you can apply for pre-approval before you even find the home you want.



 Of course, some companies offer this when you apply in person as well, but on the web, you don't have to go into the lender's office, you just apply online, receive an approval for a specified amount, and then find a home that fits into that amount. The pre-approval is usually good for at least six months, after which you have to resubmit your application.

Florida Mortgages

With lending rates very low, this is a good time to consider buying a home. As with any major investment, you can get the most out of a mortgage by understanding the lending market and terms used in this market. With a little effort now, you could save yourself thousands of dollars in mortgage payments over the years. Before searching for a lender, there are some general tips on mortgages you may want to consider.

Your first question is probably, how much can you afford to borrow? Lenders use a general rule of thumb that your monthly mortgage payment should not exceed 29% of your monthly gross income, before taxes or any other deductions are made.



Once you know what this figure is, you can shortlist neighborhoods with affordable houses. The next step is to get and compare mortgage rates from several lenders. This is always worth doing because lending rates vary greatly and shopping around can get you a better deal. You can also go through a mortgage broker who can help you find a lender. Ask the broker what fee is charged for the services you're considering.

For peace of mind, try to find a reputable lender.



This could be your financial institution, a mortgage company, or a government lender if you are eligible. When you get a rate quote from a lender, find out whether it is a fixed or adjustable rate, and if adjustable, whether it will be reduced if interest rates fall. Also ask about the annual percentage rate (APR), which factors in other costs like a broker's fee or points. Ask your broker or lender to carefully explain all fees involved. Other questions to ask are what the down payment is and whether private mortgage insurance is required.



Florida Mortgages provides detailed information about Florida mortgages, Florida interest only mortgages, Florida mortgage brokers and more. Florida Mortgages is affiliated with Florida Refinance Mortgage Loans.

How to Get Approved For a Mortgage Loan Modification - Learn to Pre-Qualify Yourself

Do you apperceive how to access your affairs of accepting accustomed for a mortgage accommodation modification? One way is to apprentice how to pre-qualify yourself so that you knowyou can meetyour lenders approval guidelines. This is a simple action that you can use to apperceive advanced of timewhether you accept a adequate adventitious of success at accepting the accommodation conditioning you need. The Obama accommodation modification plan has austere guidelines for qualifying, as do abounding added accommodation conditioning plans.



Here is some admired advice you can use to apprentice how to pre-qualify yourself so you can adapt your appliance accurately and get a jump alpha on the process.



Successful mortgage accommodation modification candidates will be able to accommodated assertive approval guidelines. Once you apperceive what those guidelines are, you can plan on your appliance at your own clip to actuate if you ability qualify. You charge to apperceive the affairs debt arrangement guideline, again compute your own so that it will accommodated that guideline.



You can acclimatize some of your costs if needed, or even add some domiciliary assets with a acquaintance or allotment time plan if necessary. The ambition is to apperceive what needs to be anchored to accommodated the debt arrangement guideline, again accomplish those adjustments afore your lender has the adventitious to about-face you down. When you plan on this advanced of time, afore you acquaintance your bank, you accept the adventitious to accomplish the all-important changes to your paperwork.



That way, you can provideacceptable accommodation modification forms to the coffer and access your adventitious of approval.



The Obama mortgage accommodation modification plan offers a additional adventitious for millions of homeowners larboard with few options to save their homes. $75 billion dollars has been set abreast to advice able borrowers get a lower absorption rate-as low as 2%-so they can allow to break in their home. Not anybody will authorize for this accommodation workout, and alone borrowers who can authenticate that they accommodated the approval requirements will be approved.



You do not wish to absence out on this opportunity-make abiding you do aggregate you can to get the advice you need.



The Obama mortgage accommodation modification plan has an added incentive-successful borrowers will be paid for every ages they abide accepted on their new adapted loan. $1000 a year, up to $5000 total, will be accustomed appear the arch antithesis of loans that accommodating homeowners accumulate current. That is addition benefit advised to animate borrowers to administer for a mortgage accommodation modification and to break committed to home ownership.



The Treasury Department is auspicious all absorbed homeowners to activate acquisition the appropriate abstracts and alpha the appliance process. The Obama mortgage accommodation modification plan is chargeless for borrowers, and lenders are accepted to be inundated with requests. Accomplish abiding you apperceive how the plan works, pre-qualify yourself, again abide an authentic and adequate accommodation modification appliance to your lender.