No one wants to pick the worst mortgage, but what do you need to consider when you’re looking at second mortgages, and mortgages in general? As Toronto mortgage brokers we know that there are many traps that people can fall into when they’re trying to find the mortgage that’s right – and when you don’t know what they are you can easily end up paying a lot more than you should have to. Here we’re going to go over what you need to know, so let’s get started.
What Term is Right for You?
Mortgage terms aren’t exactly what you might think, it’s not what you’re paying each month, but actually the length of time you have to repay the loan. Think of it like the ticking time bomb; can you disarm it quickly or do you need a lot of time to pay it off? Things like that can put a serious crimp in how long and how much you’re going to have to put into your second mortgage or your first one, so be careful!
Thinking Ahead Saves You Time and Money
Thinking ahead will help you figure out if this is the right mortgage for you. If you’re just getting a second mortgage to fix up your home so you can sell it in a year, you’re not going to want a 5 year mortgage term – but if you’re not sure if your home is going to sell you may want to. One of our Toronto mortgage brokers will be able to help you anticipate problems down the road.
Fixed or Variable Rate Mortgage?
A fixed rate mortgage is going to be great for people that need to take their time repaying, it’s one of those in for the long haul sort of things – but if you don’t see yourself staying in place or you’re going to repay quickly you may want to look at a variable rate mortgage. You’re not going to want to pay this off slowly either, because once the term comes due you may have a balloon payment to contend with. Again, one of our Canada mortgage brokers will be able to help you figure out which one is right for you.
We’ll Help You Shop Around
Everyone can use a little help shopping around, and we’ll help you understand what your options are. We’ll go to different lenders to make sure you’re getting a great price on a mortgage that fits your current and future financial needs; why deal with a surprise if you don’t have to?
From figuring out how much you can spend to how much you’ll spend if you select a specific type of mortgage, we’ll be there through every step of the process to make sure your next mortgage is successful and benefits you first and foremost. Why spend more than you have to when you can get a 2nd mortgage that’s tailored to your needs? Let us help you today!