Mortgage Basics For First-Time Home Buyers

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Mortgage Basics For First-Time Home Buyers
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• If youre buying a home for the first time, there
  will be a lot of new things to learn and
  understand, and a mortgage is probably the first
  that youll want to wrap your head around
• What is a mortgage
• In its simplest terms, a mortgage is the loan
  that youll use to purchase your first home.
  Similar in many ways to other loans, an amount is
  borrowed, and a rate of interest is paid to the
  lender Then, over a predetermined number of
  years, the loan must be repaid.

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• Lenders throughout Canada frequently offer two
  types of mortgage open and closed. Open
  mortgages enable you to make extra payments on
  the principal and give you flexible options to
  pay it off in its entirety, but they are often
  only available on a short-term basis, such as for
  6 months, up to a year. Closed mortgages dont
  offer such flexibility, but usually have lower
  rates of interest than an open mortgage with
  similar terms.
• How do you qualify for a mortgage
• Each type of mortgage will have its own minimum
  standards that you must be able to meet if youre
  to qualify for it.

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• There are many types available, with banks
  proving a popular lender for many your mortgage
  broker is best qualified to advise you on which
  would best suit you and your financial
  circumstances.
• What sort of down payment should you make
• When youre buying your first home, youll need
  to put a payment down this is best thought of as
  being part of the home purchase price that youre
  not having to borrow from the bank, and is aptly
  called a down payment. The type of loan that
  you choose will determine your minimum down
  payment.

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• How high will the mortgage interest be
• Mortgage interest rates are separated into two
  parts, and the first part of your mortgage rate
  is linked to whichever loan program you have
  opted for. When your mortgage broker helps you
  choose a loan, they will talk you through the
  interest payments.
• When do you have to pay the loan back by
• The term of a loan is the number of years until
  it must be paid back in full, and as the mortgage
  borrower, the term of your chosen loan is up to
  you.

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• Most loan terms have a span of 30 years, but
  there are other options including a 10-year term,
  15, 20 and 25-year terms. Again, you can discuss
  your options with your bank and/or mortgage
  broker.
• Short-term loans are beneficial in that their
  rates are typically lower and of course, the loan
  gets paid off quicker.
• What will your monthly mortgage payment be
• Monthly mortgage payments are based upon three
  things the amount of money that you have
  borrowed from a lender, the interest rate of your
  mortgage, and the term of your mortgage.

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• If you have a fixed-rate mortgage, you can use
  the figures that you get from the above 3 factors
  to calculate your monthly payments using what is
  known as a mortgage calculator. This payment
  will then remain the same for the duration of
  your loan.
• If youre buying a home for the first time, its
  vital that you understand how your mortgage works
  in order to choose the best mortgage and rate,
  for you and your personal circumstances. Your
  broker will advise you how, and if you qualify
  for a mortgage, and run through all the options
  with you in detail.

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• Mortgage-broker-Calgary is your best resource for
  finding a mortgage for your property. Luke Wile,
  is the best calgary mortgage broker and is proud
  to serve clients from across Canada, while being
  centered in Calgary, Alberta. Luke is proud to
  serve his clients with a personalized approach to
  finding his clients the best and lowest Canadian
  interest rates and terms offered by the major
  banks and private lending institutions. If you
  are looking for a mortgage broker in Calgary,
  with Luke Wile you can get fast and personal
  expertise for your mortgage!