What is Mortgage

Types of Mortgages

Pre-Approved Mortgages

Mortgage Features

You Should Know

Securing a Mortgage

Additional Costs

Lenders constantly add additional features and incentives to their mortgage packages to attract customers. You should search for a mortgage that best suits your short-term and long-term goals. Below you will find some Pre-Approved mortgage features that you should be aware of.

Pre-Approved Mortgage Features to Look For

• Competitive interest rates: You may be willing to pay a little more to get the flexible features you desire.
• A 90-day rate guarantee: This will protect you against rising interest rates while allowing you to take advantage of falling rates.
• Flexible payment options: These enable you to tailor the mortgage to your lifestyle. Discuss payment frequency and lump-sum payment options. Find out if your lending institution will allow you to skip a payment in special circumstances or double-up on your payments.
• Closing Costs: Ask about the lender's policy with respect to realty tax holdbacks on closing.

General Mortgage Features

Most mortgages are very similar to one another and have certain common features that you should have knowledge of. When you're hunting for a lender and a home, see how the following features could be beneficial to you.

Prepayment

With a pre-payment privilege, you have the right to make payments toward the principal portion of your mortgage over and above the monthly payments. Such as up to 10% extra payment against the principle on the yearly anniversary date or monthly double-up payments. All prepayments are deducted from the principal amount owing and do not go toward accrued interest.

Portability

If you still have time remaining on that fantastic loan you negotiated, portability is one option you'll want to discuss with your lender. Simply put, it means transferring the balance of your current mortgage at the existing rates and with the existing terms and conditions, to your new home.

Expandability

Lets say, you need additional funds down the road; will your mortgage terms allow you to increase the principal amount? It's a great option to discuss with your lender if you foresee large expenses in your future like renovation or education costs.

Assumable Mortgage

In this case, a future purchaser of your home can take over your mortgage and assume the payments. Usually the lender's approval is required before this is allowed.