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Ten Mortgage Tips
 January 11 2018     Posted by LA Mortgage Team


Ten Mortgage Tips for the Year Ahead

Mortgage rule changes that came into effect January 1 have made rates and qualifying much more complicated, which means it’s important to get in touch as early as possible when you have an upcoming financial need. 

Are you thinking about buying another home (moving up or a second home)? 

1. Be careful looking online for a 'best' 5-year rate. Fact is, these days a 'best rate quote' is meaningless, because mortgage pricing is now based on multiple factors. Everything depends on your personal situation.
2. If you have over 20% equity, you may want to consider a 30-year amortization mortgage. Benefits can be significant and outweigh any rate premium - more purchasing power, easier mortgage qualifying, and lower payments to boost cash flow or to allow you to divert cash to build a savings buffer or use for investing. Taking a variable-rate mortgage could also improve your mortgage qualifying, allowing you to lock in later.
3. While counter intuitive, lenders offer the best rates to borrowers who need mortgage insurance because they have less than 20% down. So even if you have more than 20% down and don't need mortgage insurance, it may actually be worth purchasing. You'll get a lower rate and better options at renewal. I can run the numbers and see if it makes sense for you.
4. If you are self-employed, get in touch early so I can advise you on what documentation and information you'll need for building a strong case to present to lenders.
Do you have a large loan or a stubborn credit card balance that is eating away at your cash flow?
5. While refinancing may be more difficult for some, I have access to other financing options that can help you get your debt under control.
6. Always keep up good credit habits: pay your bills on time, never let your debt exceed more than 50% of your limit, and don't be tempted to apply for store cards 'to save on your purchase today'.
7. A home with a rental suite could help offset mortgage payments in the house you're in.
Is your mortgage coming up for renewal within the next 12 months?
8. Lenders love insured mortgages. If you have one, let's check out the competitive landscape at renewal. If you aren't sure if your mortgage is insured or not, I can find out.
9. If your mortgage isn't insured, we should definitely still look at your available options or I can help you renew with your lender and make sure you get the best deal.
And finally...
10. Do you want to pay off your mortgage early, or start that long wanted renovation? Wherever you are in your homeownership journey or whatever your need, a great conversation at any time can identify all the ways you can make it happen and save thousands of dollars.
New year. New rules. New chance to review your mortgage and wealth-building options. Get in touch for a review of your situation.

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