How to Get the “Right” Mortgage For You
Buying a home is a stressful process for many, since it is often the largest investment you will make in your lifetime. Because of this, most buyers will work hard to ensure that they are working with a reliable and hard working real estate agent to help make the process as easy as possible. While finding elite real estate professionals to work with is hugely important, many potential buyers do not dedicate as much time and effort when shopping for their mortgage.
Buying a Home Can Wear You Down
Since potential buyers can usually obtain financing from their current bank, many choose to take the first financing offer they receive without exploring their options. Unfortunately, many buyers are unaware of the significant difference in interest payments they will make over the life of their mortgage by taking a slightly higher interest rate. Also, the house hunting process can be very tiring and wear on the buyer, which may result in a lack of desire to start the shopping process all over again for the mortgage.
Better Interest Rates Will Save You in the Long Run!
To demonstrate the amount you could save by seeking out a better rate through Home Mortgage Ontario, we will show a comparison over a mortgage amortized over 25-years. Here are the specifications of the mortgage we will use:
- Mortgage Amount: $200,000
- Amortization: 25 years
- Payment Frequency: Monthly
- Interest Rate: Fixed, at 3.19%, 3.49% and 5.44%
As I write this post, Home Mortgage Ontario can offer a 5-year fixed quick-close mortgage at 3.19%, secondary lenders are offering 3.49%, and the big banks are posting rates at 5.44%. Here is the breakdown we found when we used the Mortgage Payment Calculator from our website:
|Options:||Home Mortgage Ontario||Secondary Lenders||Big Banks|
|5-Year Fixed Rate:||3.19%||3.49%||5.44%|
|Cost of Loan:||$89,830||$99,247||$164,143|
From the comparison table above, you can clearly see that obtaining the best rate for your mortgage can save you tens of thousands of dollars over the lifetime of your mortgage.
You Want to Save Money When Purchasing a Home – Why Not a Mortgage?
Think about it. Many buyers will counter-0ffer for as little as $500 when attempting to purchase a home, yet some of those same buyers will accept a mortgage which will cost them over $74,000 more than had they found a lower rate with their mortgage agent.
We Work for You Not the Lenders
Here at Home Mortgage Ontario, we take pride in finding our clients the best mortgage for their situation. We will not offer you anything but the best rate and prepayment options to ensure that you are completely satisfied. We receive the majority of our business through referrals and will work to impress you.
In very little time, over the phone or Internet, we can find you the best product for your situation and get you pre-approved for the mortgage amount you’ll need for your purchase! We look forward to speaking with you soon!
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