What To Look For In A Mortgage Beyond Just A “Good Rate”.

Sure, a low mortgage rate is important. But choosing your mortgage and lender based on rate alone can be a mistake. Here are some other things to consider that can save you significant money and frustration.

• Amortization.  This is the length of time it takes to pay off your mortgage. It’s tempting to choose a longer amortization because that keeps your payments low. But lengthening your amortization means you’re paying off your mortgage more slowly, so you end up paying much more interest. Choosing the correct amortization for your needs can help you become mortgage-free much sooner!
• Term.  This is the length of time your rate is locked in. Short or variable terms generally have a lower interest rate than longer terms. But before you choose a term, consider where interest rates are going and how secure your financial situation is. Can you afford a sudden rise in payments, or do you need the security of payment stability over the long term?
• Flexibility.  Give some thought to what your situation and needs will be in five or ten years. Is there the chance you’ll get transferred? If so, maybe you should consider a portable mortgage. What if you get a raise and want to pay down your mortgage more quickly? In that case, you’ll wish you’d chosen one with low prepayment penalties. It’s essential to consider these possibilities before you lock yourself in!
• Proactive service.  With some lenders, once you’ve closed the deal, you don’t hear from them again until renewal time. But a reputable mortgage professional will stay on top of your mortgage on a regular basis, always looking for ways to help you pay less interest and become mortgage-free sooner.

Finding the lowest rate can be easy. But if you’d like some help adding these other vital factors into the equation, please contact us. We’re happy to offer a free mortgage analysis to make sure you’re taking the shortest possible route to financial security!

Kupina MortgageTeam  905.730.4782 – mark@kmortgage.ca