When you’re talking about mortgages, you have probably heard that that there are many types to choose from. The various types and the terminology can be overwhelming to learn about and be confusing if you don’t know what each type can do for you.
What is a mortgage? The basics:
When you purchase a home, chances are you can’t buy it out right. A down payment is put towards the purchase of the home or property and the balance needs to be borrowed. The remaining portion of the purchase is called the mortgage. This is the loan you get from a lender to cover the balance that is owed. A mortgage is a legal contract between you and your lender. When you are shopping for your mortgage, your lender or mortgage broker, like the team at Weisz Choice Mortgage Group, will present you with mortgage options that will suit your circumstances. Topics that will be discussed are the amortization and the payment frequency. The amortization the length of time you will make payments to the lender and the payment frequency is how often your will make the payments. When discussing your mortgage, you will the word term brought up. The mortgage term is the length of time you contract is in effect. Your interest rate and contract are binding for the length of the term. When the term expires, you renew your mortgage, unless you want to pay it off.
Your lender or mortgage broker, like the Weisz Choice team, will help you in finding an interest rate and mortgage type that works for you. The interest rate is the cost of borrowing money. Weisz Choice Mortgage Group will work with lenders to find you the best interest rate that will work for you and your situation. Interests are based on the length of the mortgage term, your credit rating, if you are self-employed and the lender you work with.
Types of Interest Rates
(You will be offered different types of interest options and you should know what they are.)
- Fixed…interest rate stays the same during the entire term which means the payments will stay the same also.
- Variable…interest rate and payments can increase and decrease during the term.
- Hyrid/Combination…has both fixed and variable rates. This is not common interest rate and needs much discussion.
Payment Frequency
- Monthly…one payment per month…12 payments per year
- Semi-monthly…2 payments per month, not necessarily every other week…24 payments per year
- Biweekly…every other week…26 payments per year
- Weekly…payment made each week…52 payments per year
Whether you already have a mortgage and it is renewal time or you are a first-time home buyer or looking at buying commercial property, Wise Choice Mortgage Group can help. They will get you the best rates and terms that will help you.
The process at Weisz Choice Mortgage is very simple.
- They get to know you.
- They find the right mortgage.
- They seal the deal.
Weisz Choice Mortgage Group works with clients in Hamilton, Burlington, Oakville, Niagara and Toronto. They also have access to over sixty lenders and will find you the perfect mortgage to suit your needs. You can call them at 905-921-2701 or reach them using e-mail at
nweisz@weiszchoice.com to learn more with no obligation.