Rates

Mortgage Rates

Commercial and construction loans also available!Rates and points are subject to change without notice.
Discount rates are on approved credit and subject to lenders’ discretion.
Certain conditions apply.

Variable Mortgage Rate

A variable mortgage rate, that is also known as adjustable rate mortgage is a loan where the interest rate is periodically adjusted based on the changing of the prime lending rate. Adjusting the rate secures a constant margin for the lender, who most of the time depends on funding related to prime.

Subsequently, the borrower’s payments may change with the changing interest rate and in essence the term of the loan may change also. The rate could be applied directly ie, prime is 3% so the borrower’s rate is 3% or another way to apply the rate is on a rate plus margin basis, ie. prime+1, when is prime is 3% so your rate is 4%.

Ultimately, the decision is  yours. If you opt for a variable mortgage rate you may save money but you might be stressed out by the risk and fluctuation you are taking.

 


Equity Line Of Credit

A HELOC , Home Equity Line Of Credit, allows you to borrow money against the equity built in your home for various reason, such as doing renovations, taking a vacation etc. It is not the same as a home equity loan . With HELOC you are not advanced the entire sum up front, you will use a credit line to borrow sums no higher than the amount of the approved credit line. You could compare it to the way a credit card would work.

You will be approved credit limit that you can borrow up to and you pay back only what you use plus interest.

With HELOC you will have a minimum monthly payment, that translates into interest only payment a lot of the times and after you paid the minimum it is up to you how much extra you add on. It is always prudent to pay more then just the minimum monthly payment but if for some reason you are not able to you will not be penalized.

The interest rate on a HELOC is variable based on prime rate, meaning your interest rate will fluctuate. If you intend to use HELOC  you should know that  all lenders calculate their margin the same way, meaning, the margin is the difference between the prime rate and the interest rate the borrower will actually pay.

HELOC loans are popular and used for investment a lot of the time. Interest paid is most of the time deductible under income tax laws. It is a good tax reducing or saving strategy.

Adding to the popularity of HELOCs is the flexibility of the loan setup in terms of borrowing terms and repaying responsibility. These are mainly set up to suit the borrower’s needs. On top of that a HELOC loan is looked upon more favorably then a second mortgage”,   which can reflect on the borrower as adding on to his or her debt load. .

Keep in mind that lenders generally require you, the borrower to maintain a certain “safe” amount of equity in your home in order to circumvent foreclosure.


Fixed Rate

A fixed rate mortgage is a mortgage where the interest rate remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float.” The payment amount is independent of the additional costs on a home, which include but are not limited to, property taxes and property insurance. Consequently, payments made by the borrower may change over time with the changing amounts of taxes or insurance, but the payments handling the principal and interest on the loan will remain the same.

Fixed rate mortgages are characterized by their interest rate (including compounding frequency, amount of loan, and term of the mortgage). With these three values, the calculation of the monthly payment can then be done.

For first time buyers or those who prefer to know exactly what their payment is for budgeting, this is the best way to go.


Equity Loan

A home equity loan is a type of loan which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, or your children’s education. A home equity loan creates a lien against the borrower’s house, and reduces the overall home equity.

Home equity loans are most commonly second position liens (second mortgage), although they can be held in first or, less commonly, third position. Most home equity loans require good to excellent credit history, and reasonable loan-to-value ratios.

These types of loans are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages.

There is a big difference between a Home Equity Loan and a Home Equity Line Of Credit in that a HELOC is a revolving line of credit with an adjustable interest rate while a Home Equity Loan is a onetime lump sum usually with a fixed interest rate.

Rates

Commercial and construction loans also available! Rates and points are subject to change without notice. Discount rates are on approved credit and subject to lenders’ discretion. Certain conditions apply.

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