A16 IMMIGRATION CORNER PHILIPPINE ASIAN NEWS TODAY November 16 - 30 , 2016
Life etc .
by Jun Cordero
The Notary Corner
By Editha Corrales Nelson Immigration Consultant , Notary Public , Mediation / Arbitrator
As a mortgage borrower – particularly if this is your first time embarking upon homeownership – there ’ s no doubt you have a load of questions related to the mortgage process . Aside from the most common questions , such as those relating to mortgage rate , the maximum mortgage amount you ’ ll be able to receive , as well as how much money you ’ ll need to provide for a down payment , the following five questions and answers will help you dig a little deeper into the mortgage financing process .
1 . Can I make lumpsum or other prepayments on my mortgage without being penalized ? Most lenders enable lump-sum payments and increased mortgage payments to a maximum amount per year . But , since each lender and product is different , it ’ s important to check stipulations on prepayments prior to signing your mortgage papers . Most “ no frills ” mortgage products offering the lowest
Two wonderful verses from the book of Luke in the Bible say : “ There is nothing hidden that won ’ t be revealed ...,” and “ be careful or your hearts will be weighed down with dissipation , drunkenness and the anxieties of life , and that day will close in on you unexpectedly like a trap ...”
We ’ ve seen this , be it Hollywood or politics , scandals resulting from truth being revealed , the least they were expected , and the unexpected being trapped with dire consequences . A good example - Canada ’ s Prime Minister Justin Trudeau just caught himself in a trap , when least he expected it .
After his unbelievable victory in the last election , Mr . Trudeau has been riding the wave of popularity ever since , particularly from the young generation who wouldn ’ t know the difference between
rates often do not allow for prepayments .
2 . What mortgage term is best for me ? Terms typically range from six months up to 10 years . The first consideration when comparing various mortgage terms is to understand that a longer term generally means a higher corresponding interest rate and a shorter term generally means a lower corresponding interest rate . While this generalization may lead you to believe that a shorter term is always the preferred option , this isn ’ t always the case . Sometimes there are other factors – either in the financial markets or in your own life – you ’ ll also have to take into consideration . If paying your mortgage each month places you close to the financial edge of your comfort zone , you may want to opt for a longer mortgage term , such as five or 10 years , so that you can ensure that you ’ ll be able to afford your mortgage payments should
5 QUESTIONS EVERY BORROWER SHOULD ASK
interest rates increase .
3 . Is my mortgage portable ? Fixed-rate products usually have a portability option . Lenders often use a “ blended ” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current rate . With variable-rate mortgages , however , porting is usually not available . This means that when breaking your existing mortgage , you will face a penalty . This charge may or may not be reimbursed with your new mortgage . Some lenders allow you to port your mortgage , but your sale and purchase have to happen on the same day , while others offer extended periods .
4 . What amortization will work best for me ? The lending industry ’ s benchmark amortization period is 25 years , and this is also the standard used by lenders when discussing mortgage offers , as well as the basis
A leopard cannot hide its spots
politics and Canadian Idol . And to the delight of all , Canada ’ s and the world ’ s beloved PM delivered to their expectations . As one international columnist said , I quote , “ the only thing he [ Trudeau ] seems to enjoy ... are things like pop-culture events ... and meeting and greeting and taking pictures with the public like a movie star or rock star would .” Critics claim he still had to focus yet on things less sexy but really important to Canada itself .
But then , when he finally focused on his prime ministerial duties , just like very recently when he sent Canada ’ s official condolence in the death of Cuba ’ s Fidel Castro , Trudeau revealed how totally inept he was to be the world-class leader he imagined he was . He praised Fidel Castro like he would a hero , thus raising ire and outrage from the international community .
Probably still lost in the clouds as Vogue ’ s Sexiest Man Alive Mr . Trudeau forgot that he is the leader of a country that vigorously champions humanrights against despots like Fidel Castro himself - or probably he got a D- minus in his high-school History class .
Social media has been ablaze with angry comments from international media and U . S . politicians including Donald Trump , Ted Cruz and Mark Rubio , among others . Good one Mr . Prime Minister ! As one newspaper puts it , “ It made him a laughing stock among real world leaders . Up until now , he had them believing he might have substance .” How true - nothing hidden that will not be exposed .
WWW . PHILIPPINEASIANNEWSTODAY . COM
for mortgage calculators and payment tables . Shorter timeframes are also available . The main reason to opt for a shorter amortization period is that you ’ ll become mortgagefree sooner . And since you ’ re agreeing to pay off your mortgage in a shorter period of time , the interest you pay over the life of the mortgage is , therefore , greatly reduced . A shorter amortization also affords the luxury of building up equity in your home sooner . While it pays to opt for a shorter amortization period , other considerations must be made before selecting your amortization . Because you ’ re reducing the actual number of mortgage payments you make to pay off your mortgage , your regular payments will be higher . So if your income is irregular because you ’ re paid commission or if you ’ re buying a home for the first time and will be carrying a large mortgage , a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be your best option .
5 . How do I ensure my credit score enables me to qualify for the best possible rate ? There are several things you can do to ensure your credit remains in good standing . Following are five steps you can follow : 1 ) Pay down credit cards . This the # 1 way to increase your credit score . 2 ) Limit the use of credit cards . If there ’ s a balance at the end of the month , this affects your score – credit formulas don ’ t take into account the fact that you may have paid the balance off the next month . 3 ) Check credit limits . Ensure everything ’ s up to date as old bills that have been paid can come back to haunt you . 4 ) Keep old cards . Older credit is better credit . Use older cards periodically and then pay them off . 5 ) Don ’ t let mistakes build up . Always dispute any mistakes or situations that may harm your score by making the credit bureau aware of each situation .