Mortgage Brokers Mortgage - Home Financing Made Easy | Page 4

Worried about Your Mortgage Rate?
Know How to Save Thousands!
Do not forget to check what prepayment privileges are available. It is true
that with an increase in the interest rate, you will be paying more to meet
the interest rate than settle the principal amount. Therefore, it is of
immense importance to select a deal that offers prepayment privileges and
allows you to make large lump-sum payments to pay your loan faster. For
this, you may be better off working with non-bank lenders because they
are likely to offer lower rates and throw more generous prepayment
privileges your way. Just be sure to consider non-traditional lenders that
come with a solid track record.
 Be sure to consider penalties when taking out a loan. You should know in
advance exactly what you would go through if you ever need to break your
mortgage. You may wind up breaking your mortgage for many reasons –
some do it after they get divorced, while others may have to do it after
losing their jobs. You need to consider those unexpected circumstances
because breaking a mortgage could cost you thousands in penalties.
Therefore, you should practice care and read the fine print carefully. In
Canada, you usually have to pay 3-month's interest upon breaking your
mortgage – that is when yours is a variable-rate mortgage. You may end up
paying much more than that in case of a fixed rate mortgage – you may
have to pay a much larger amount calculated considering your current
mortgage rates as well as your remaining mortgage balance. So, be sure to
ask your lender to explain their terms and conditions related to mortgage
penalties.
