An oldie but a goodie. (Thanks to Jenn Widney from Financial Fundamentals for this advice)
When someone asks me “What’s the best rate out there?” I just want to scream! I mean really, before jumping into the RATE, at least buy me dinner!
Seriously though, that is one of the toughest questions that any good mortgage broker has to answer. Don’t get me wrong, I can quote the best discounted rate available but that really isn’t the answer to the question people are asking. What they really want to know is: What is the Best Rate for my situation?
There are so many factors that go into determining what RATE is available for a borrower. We first need to get answers to basic questions such as: What is your income? How is your pay structured? How is your Credit Rating? How much do you have to put down on the property or how much equity is in the property?
Next, and most importantly we need to know what your plans for the property are. What are your financial goals for the immediate and long term? What is important to you?
With access to so many products from over 50 Lenders, there are A TON OF OPTIONS. Each mortgage product has different privileges’, penalties and terms. Determining the best product for your situation takes some digging, some understanding and some due diligence. It’s not just a hop into the RATE and hop out kind of thing!
From now on, when you hear RATE here’s what you should think:
READ THE FINE PRINT
- What are the penalties if I break this mortgage and how are they calculated? Can I refinance this or do I have to sell to get out of it (Bonafide Sale Clause) Is it portable?
ASSESS YOUR GOALS
- What is your plan for the property? What is your exit strategy? Can you foresee any life events that may change your financial picture positively or negatively in the next 3 years/ 5 years?
TALK TO A MORTGAGE PROFESSIONAL
- Get some Mortgage Coaching from an unbiased Mortgage Professional that works for you. (That would be us)
EVALUATE YOUR OPTIONS BEFORE YOU EXECUTE
- Look at all the options available to you – different types of mortgages, terms, payment options, pre-payment privileges and measure them against your goals.
Questions? I thought so, let me put you in touch with a mortgage expert! contact me