Archive for category Mortgage Advice
Mortgage Bits: House Upkeep; What does it really cost to own a home?
Posted by Top Home Loans in Mortgage Advice, Property Management on December 13th, 2009
when purchasing a property, most buyer’s number one question is: how much are the mortgage payments? Buyer’s usually think that if they can afford the mortgage payments, then they must be able to afford the property.
Unfortunately, this is the furthest thing from the truth. Upkeep, especially on condos, can be as expensive, if not more expensive, than the property itself. For example, let’s take a look at the average property in Toronto.
In Toronto, the average property value is approximately $450,000. This property would produce the following upkeep fees if it is a free hold unit.
? Property taxes: 350/month
? Heating: 75/month
? Electricity: 100/month
? Cable and Internet: 120/month
? Phone Service: 60/month
? Repairs and Upgrades: 200/month
Total upkeep per month: $905
If you look at a condo, then you would also need to factor in condo fees and parking rental fees. These fees alone can be as much as an additional $1000 per month.
Keep in mind that as your property increases in value, so does your upkeep. All the upkeep items are aligned with values, so you should expect to pay more as your value goes up.
Unfortunately, just because you have the money to buy a property doesn’t mean that you should if you can’t afford the upkeep. Make sure that you calculate the upkeep as well as the mortgage payments before you decide to purchase a property.
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Mortgage Bits: Increase your Payment Every Chance you get
Posted by Top Home Loans in General Banking, Mortgage Advice, Mortgage Rates on November 13th, 2009
Nothing affects the amount of interest that you pay more than the duration of time it takes you to pay off your mortgage in full. Even if you had received the worst rate in the market each term, you would still be better off if you take advantage of lump sum payment and prepayment options.
However, how do you when you can increase your mortgage payments?
There are several specific times when it is most appropriate. These include:
- When your annual income rises due to a raise or a promotion.
- When you receive an annual or quarterly bonus, you should put most of it onto your mortgage.
- When you work overtime, you should put a percentage of the extra income you receive onto your mortgage priciple balance.
- if you run into an inheritance, gift, or other financial aid, then consider applying these funds against the balance of your mortgage.
The more money you are able to put against your principle balance, then the less money you will end up giving to interest.
By increasing your payments with inflation annuaaly, you can shave off years of interest by using this simple rule.
Mortgage Interest Rate Update – Lowest Available Rates – November 11, 2009
Posted by Top Home Loans in Mortgage Advice, Mortgage News, Mortgage Rates on November 11th, 2009
When refinancing, transferring, buying, or selling, you want to make sure that you have the best mortgage rate. It is important to have a low rate in order to be able to pay off your mortgage faster, and you will have lower monthly payments.
Lowest Mortgage Interest Rates in Canada
Buying a new house: Lowest available mortgage rate 3.74% on a 5 year fixed rate closed.
Buying a new house: Lowest available mortgage rate 2.05% on a 5 year variable rate closed.
Already have a mortgage and not moving: Lowest available mortgage rate 3.74% on a 5 year fixed rate closed.
Already have a mortgage and not moving: Lowest available mortgage rate 2.05% 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 5.20% on a 10 year fixed rate closed.
Average Mortgage Interest Rates in USA
30 year fixed rate: 5.06%
15 year fixed rate: 4.64%
5/1 ARM: 4.20%
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 November 11, 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.
All quoted mortgage rates are subject to change at any time and without warning.
Compare Rates with Previous Posts:
- Mortgage Interest Rate Update – Lowest Available Rates – October 16, 2009
- Mortgage Interest Rate Update – Lowest Available Rates – September 17, 2009
- Mortgage Interest Rate Update – Lowest Available Rates – June 11, 2009
- Mortgage Interest Rate Update – Lowest Available Rates – June 2, 2009