There are several key features that you should look for when
getting a mortgage. One of them is whether the mortgage is
"portable". This means that if you purchase a new home prior to your
current term being up, you can simply bring your mortgage to your new home
without having to pay the payout penalty.
Typically the sale of your current home and purchase of your new home have to happen within 60-120 days (again, depending on your lender). Every lender will have different policies but generally you will have 2 options.
1) If you keep all of the terms of your mortgage the same (without increasing the balance), then you can typically keep your current rate. If you are downsizing then this can be great, however if you are looking to increase the mortgage amount then your down payment will need to cover the difference between your current mortgage amount and the property purchase price. Alternatively, you could consider a small second mortgage or option #2.
2) They will allow you to increase your mortgage amount up to 95%* of the value of the new purchase price and they will blend your interest rate and the current market rate. It is important to note that if you have an amortization longer than 25 years, you generally cannot keep it with this option however you can with option #1.
As interest rates start to rise, it will be more important than ever to look for this feature in your mortgage as it will not only save you your payout penalty, but allow you to keep a lower rate. For more information on anything mortgage related, please contact me today.
www.christinebuemann.com
Typically the sale of your current home and purchase of your new home have to happen within 60-120 days (again, depending on your lender). Every lender will have different policies but generally you will have 2 options.
1) If you keep all of the terms of your mortgage the same (without increasing the balance), then you can typically keep your current rate. If you are downsizing then this can be great, however if you are looking to increase the mortgage amount then your down payment will need to cover the difference between your current mortgage amount and the property purchase price. Alternatively, you could consider a small second mortgage or option #2.
2) They will allow you to increase your mortgage amount up to 95%* of the value of the new purchase price and they will blend your interest rate and the current market rate. It is important to note that if you have an amortization longer than 25 years, you generally cannot keep it with this option however you can with option #1.
As interest rates start to rise, it will be more important than ever to look for this feature in your mortgage as it will not only save you your payout penalty, but allow you to keep a lower rate. For more information on anything mortgage related, please contact me today.
www.christinebuemann.com
*For
primary residence or second homes. Not applicable top investment properties.
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