Archive for June, 2009
Mortgage Interest Rate Update – Lowest Available Rates – June 25, 2009
Posted by Top Home Loans in Mortgage Advice, Mortgage News, Mortgage Rates on June 24, 2009
Lowest Mortgage Interest Rates in Canada
Buying a new house: Lowest available mortgage rate 3.89% on a 5 year fixed rate closed.
Buying a new house: Lowest available mortgage rate 2.25% on a 5 year variable rate closed.
Already have a mortgage and not moving: Lowest available mortgage rate 4.15% on a 5 year fixed rate closed.
Already have a mortgage and not moving: Lowest available mortgage rate 2.50% on a 5 year variable rate closed.
Need cash back with your mortgage: Lowest available mortgage rate 5.25% on a 5 year fixed rate closed with 5% cash back
Already have a mortgage and not moving and looking for a long term: Lowest available mortgage rate 5.24% on a 10 year fixed rate closed.
Average Mortgage Interest Rates in USA
30 year fixed rate: 5.41%
15 year fixed rate: 4.88%
5/1 ARM: 4.73%
Unfortunately, I cannot post the name of the financial institutions that are offering these rates. These rates are also subject to change at any time and are only good for April 23, 2009. They could change at any time after this date. Please use the form below, and I will provide the name of the firm for the selected product. This website has no relation to these firms.
Compare Rates with Previous Posts:
- Mortgage Interest Rate Update – Lowest Available Rates – June 11, 2009
- Mortgage Interest Rate Update – Lowest Available Rates – June 2, 2009
- Mortgage Interest Rate Update – Lowest Available Rates – May 9, 2009
- Mortgage Interest Rate Update – Lowest Available Rates – April 23, 2009
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Welcome back!
10 Ways to pay off your Mortgage Years Faster
Posted by Top Home Loans in Mortgage Advice, Mortgage News, Mortgage Rates on June 22, 2009
Use Accelerated Weekly or Bi-weekly mortgage payments
With an accelerated payment, you will make an extra mortgage payment a year. The effect of making an extra mortgage payment a year will reduce a 25 year amortization to 21 years.
Increase your mortgage payments every time you get a raise.
Your initial mortgage is based on today’s dollars; however, with inflation, you can expect that your income will increase annually. As your income increases, increase your mortgage payments by the same amount that your pay has increased. If you get an annual bonus, then put this extra money towards the principle balance of your mortgage.
Never get an open mortgage unless you are absolutely certain that you will pay it off
The average closed mortgage allows for annual prepayments of 5%-20%. You can also increase your payments on most mortgages. An open mortgage allows you to pay off the mortgage in full; however, the usual premium you will pay is approximately 1% above the regular closed rates.
If you are going to pay your mortgage in full, then you can even pay it out at your renewal time and avoid the penalty.
Keep your payments the same, even if your interest rate goes down.
When your mortgage comes up for renewal and the interest rate is lower, then keep your payments exactly the same.
You have made your payments through your previous term at this level, so keep your payments the same, and you will pay off your mortgage even faster.
Round up your Mortgage Payments to the nearest hundred
If you have payments of $460, then you should round the payment up to $500. The extra $40 will pay off the principle balance faster.
Take a Variable Rate Mortgage instead of a Fixed Rate Mortgage
If you can handle the stress of your interest rate going up, then consider getting a variable rate. Over time, the variable rate mortgage usually outperforms a fixed rate mortgage.
Make a Prepayment with your extra money
If you have extra money at the end of the month, then you should put it towards your mortgage balance. Idle money does not help your finances. You can make a prepayment for as little as $100.
Use your Tax Return to pay down your Mortgage balance
When you receive your annual tax return, apply this money towards your mortgage balance. This is extra money, so it is not included in your budget, so you should not use it to pay down debt.
Put your extra Income towards your Mortgage balance
If you pay 35% of your annual income towards your mortgage balance, then when you receive a bonus or work overtime, you should apply 35% of this bonus income towards your mortgage balance.
Get unbiased Financial Advice
Financial advisers who work for banks or get paid by banks, work for the banks. This means that they will provide you with biased advise that will help them to sell the banks products. If you pay for financial advice, then you are more likely to get the best advice that will work for you, and you will be motivated to use that advice.
These tips are difficult t implement for most people because it takes discipline and dedication, but by understanding that you will save thousands of dollars in interest, then consider taking steps to paying off your mortgage faster.
The best way to get rich is by paying off all your debts.
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How to use your RRSPs to Purchase your First Home
Posted by Top Home Loans in Investing, Mortgage Advice, Real Estate on June 20, 2009
What is the Home Buyer’s Plan?
The home buyer’s plan allows for each individual that is going on the title of the property to withdrawal up to $25,000 from their RRSPs to go towards the down payment on the new purchase. This means that if 2 people are going on the title of the property, then you can withdrawal up to $50,000, $25,000 per person, to go towards the down payment on the new purchase.
The withdrawals for this program are not considered as income in the year that this has been taken advantage of.
What are the Requirements?
When purchasing a home, you must either be a first time home buyer, or have not owned a home for a qualified period of time. The withdrawal for the down payment on the property must close within the same calender year.
The money in the RRSP must have been in the RRSP for a minimum of 90 days. You can withdrawal the money all at once or for a series of multiple withdrawals.
Do I have to repay the money back to my RRSP
Yes, you will have up to 15 years to repay the money to your RRSP. You are required to start repaying in the second year following the year you made the withdrawal from the RRSP. You will be required to repay 1/15 of the amount you withdrew annually until the amount is repaid. There is no tax liability if you only repay the minimum back to your RRSP.
Usually, your income levels will increase over the years, so it would be beneficial for you to pay the money back faster. This is because as your income level increases, then it is more advantageous for you to take advantage of RRSPs.
Until the money is repaid, then you cannot put money into your RRSPs to reduce your taxes at tax time.
This program is a great way to get a down payment on a new purchase; however, if you frequently put money into your RRSPs to reduce your taxes, then you will have to be aware that you will not be able to take advantage of RRSPs until the money you had withdrawan is paid off.