1st American Mortgage asked:


If you are looking for a Colorado mortgage rate quote for a Colorado mortgage loan, then there are many places to go. Of course there are many ads for different Colorado mortgage lenders that are based in the state and around the country. But for a better, more personal Colorado mortgage, it is best to go with an in-state Colorado mortgage lending professional.

Getting a Colorado mortgage loan from an in-state Colorado mortgage lending company has advantages, the key being that Colorado mortgage lending institutions know Colorado the best.

Colorado is unique, with a particular mix of modest private homes, second homes, luxury homes and other types. Because of this, the needs of would-be borrowers who are looking for a Colorado mortgage quote are unique as well. That necessitates a knowledgeable Colorado lender who can work with a borrower and fir their needs with the best type of Colorado mortgage loan.

Looking For a Colorado Mortgage Quote Provider

While shopping for a Colorado mortgage quote, a borrower will hope for a Colorado mortgage lender with a low rate. But that shouldn’t be the only determining factor to be considered than that part of the Colorado mortgage rate quote. The lowest bidder is not always the best place to get a Colorado mortgage loan. When deciding on the best Colorado mortgage quote, consider these other factors:

•The fees for Colorado mortgage loans

•The closing costs, which can range widely between Colorado mortgage lending companies

•Product diversity in the Colorado mortgage loans.

There are many different kinds of loan programs to choose from for borrowers and it is best to look around before a borrower decides on their Colorado mortgage quote. Aside from the Colorado mortgage rate quote itself, its best to consider fixed vs. variable loans and the different lengths of terms

•The Colorado mortgage lending companies with the best customer service. When borrowers are looking for a Colorado mortgage quote, there should be an expectation that the company will have excellent customer service, answering calls and returning them

•A Colorado mortgage lending company with experienced and informed associates. The broker working up your Colorado mortgage quote ought to be able to explain all parts of the different types of Colorado mortgage loans. They need to be able to search and return with any questions you have about your Colorado mortgage rate quote

Finding a Colorado Mortgage Loan

There are brokers nationwide you want to give a borrower a Colorado mortgage quote. Borrowers see their ads all over the place — in the yellow pages or newspaper; radio or TV. There are also many lenders who can provide Colorado mortgage rate quotes online who can also be a great resource.

Online Colorado mortgage quote providers can help you if you are looking to get many quotes with limited effort and be able to make a choice between the many Colorado mortgage quotes available. But that should not come as a replacement from real people. A borrower needs to do research; search for referrals online, check on the company to find the best Colorado mortgage quote that best suits their needs.

Virginia

Jerry Figueroa Lee asked:


When comparing mortgages there are various factors to be taken into consideration. This article covers the following mortgage specific considerations, with more to follow in part two onwards.

- Total Cost Calculation
- Overall APR
- Arrangement fees
- Portability
- Early Repayment Charge
- Term of mortgage / Age of borrower

Total Cost Calculation

For many the major consideration when taking out a mortgage is how much the monthly payment will be. This is understandable as most people know what their level of income is and how much they can reasonable afford to pay in financing a mortgage. Unfortunately, it is this assumption that can cost you dearly. All too often those applying for a mortgage look only at the interest rate and the monthly payment, making the judgement that the lower the rate and monthly payment the better the mortgage.

In most cases the opposite is true because of total overall cost. Total cost refers to the overall cost of both the monthly payment plus any combined fees for the arrangement of the mortgage, such as a lenders arrangement fee or booking fee, a valuation fee, solicitors fee etc, and based on a specific period in years.

An example based on an interest only mortgage of £100,000

A £100,000 2 year fixed rate mortgage at a mortgage rate of 4.85% with a £499 lender arrangement fee and a £300 valuation fee has a total cost of £ 10,499 over 2 years

A £100,000 2 year fixed rate mortgage at a mortgage rate of 4.59% with a £1499 lender arrangement fee and a £300 valuation fee has a total cost of £ 10,979 over 2 years

In the example above, had the lower rate been taken, then the monthly payment would have been £21.66 per month less, but the net overall total cost would have been £480 more over a 2 year period, after the addition of the higher arrangement fee. This may not seem a huge difference over two years, but if the same decision were taken every two or three years over a typical 25 year mortgage term, the cost in additional interest would come to more than £10,000 pounds. In addition, as no capital is repaid with an interest only mortgage, the outstanding balance at the end of the term would also include the lenders arrangement fees that were added to the loan bringing the balance up to around £112,000.

Overall APR

Annual Percentage Rate (APR) is the total cost of borrowing which depends on the nominal rate of interest and on whether interest is charged annually, monthly, quarterly, daily or on some other basis. Comparison of the APRs of different providers is a facility for providing a direct and fair comparison of costs since the method of calculation is laid down in the Consumer Credit Act 1974. It is possible to compare the total amount payable by the end of the mortgage term. These are important comparisons if you are concerned about the total cost of the loan as well as the monthly outlay.

A word of caution however. The APR reflects the comparison of cost over the full mortgage term. If however the mortgage is changed after say a three year fixed rate period, the APR is not a good rate to use for comparison, and you would be better to look at the ‘Total Cost Calculation’ of the mortgage product as detailed in the section above.

Arrangement fees

An arrangement fee is generally payable to the lender to reserve the mortgage funds and is common amongst all lenders. The size of an arrangement fee can vary from a couple of hundred pounds up to one percent or more of the mortgage value, which can be a sizeable sum.

Many lenders now offer lower interest rates offset by a higher arrangement fee. Don’t be misled by the attractive rate as the overall cost often works out to be more than a slightly higher interest rate with a lower arrangement fee.

You should look very carefully at any conditions associated with the arrangement fee, as in some instances the arrangement fee will be payable on or before completion, although generally the option to add the arrangement fee to the loan is available.

Some lenders expect you to pay the arrangement fee when you submit your mortgage application (and may be reluctant to refund it if you decide not to proceed with their mortgage offer). For those lenders that allow the arrangement fee to be added to the loan, you will end up paying more interest over the term of the loan.

Portability

How often do you envisage moving house in the future? Having the facility to transfer the mortgage to a new property if regular moves are predicted, may be advantageous. For example, lets say you have taken a five year fixed rate mortgage which has an early repayment charge during the five year fixed rate period, but you then have to relocate due to work commitments. Being able to ‘Port’ (transfer) the mortgage to a new property means you can transfer the mortgage without incurring the lenders early repayment penalty charge.

Early Repayment Charge

When a loan is redeemed, there may be an early repayment charge levied by the lender depending on the type of mortgage you wish to take. Fixed, discounted and tracker mortgage rates usually charge a penalty of between 3% and 5% of the original loan amount if the loan is redeemed at any time during the fixed, discounted or tracker rate term.

Nowadays, it is common practice to waive any early repayment charge when an existing loan is transferred to the borrower’s new property, especially where a fixed rate mortgage is involved. This provides continuity to the borrower, and helps retain the business and existing client for the lender.

Term of mortgage / Age of borrower

Whichever method of repayment is selected for your mortgage, the shorter the term, the more expensive will be the monthly cost. If total peace of mind is required then a standard capital repayment mortgage should be selected. This is the only type of mortgage that guarantees that the mortgage will be paid in full if all mortgage payments are made.

When choosing either a Pension, ISA backed mortgage, contributions look more attractive over longer terms as the tax incentives have a compounding effect on the investment returns in the fund and will, therefore, generally become more competitive. There are no guarantees however, and fund values can go down as well as up. When considering a pension mortgages your age and the term of the mortgage are particularly important considerations as pensions are unable to provide any capital to repay the loan until at least age 50. For instance a first time buyer aged 22 would end up with a term of at least 28 years if the pension option was chosen.


Nicholas

skategirl asked:


We are looking to refinance our mortgage. We had a bad experience with a mortgage broker the first time around. Aside from the BBB, are there any websites where I can find others’ opinions/experiences with mortgage companies?

Having received some offers already, there are a few which look too good to be true. The majority of the offers so far are at the same, somewhat higher rate (which seems to be the normal rate for our area). I just want to do some background research on the few companies that are offering the lower rates before we accept one of them.

Thanks!

Antonio

The House Team Of Mortgage Intellingence asked:


“Lower than prime,” you heard someone say. Like most Canadians, you were probably first skeptical and then confused. We tend to think of the prime lending rate as the invisible “floor” of lending rates. The very best customers can get very close to that floor. It is theoretically possible, we reason, to actually be ON the floor, but not possible to be below it.

Nevertheless, Canadian lenders offer mortgages at prime minus 0.5% to even minus 0.7%. So the floor isn’t the lowest you can go. There’s something under the “floor”. The rate known as “prime” has been the popular benchmark for lending in Canada. When business reporters talk about interest rate movement, they usually talk about what’s happening with prime. But there are other benchmarks in money rates, though they are typically for use by professional money managers. The most significant of these is the Banker’s Acceptance rate.

While “prime” is a set rate which is offered to a lender’s best customers, the Banker’s Acceptance is the rate which financial institutions use to lend money to one another. And it’s typically well below the prime rate. Look for the “Money Rates”section of your favourite newspaper, and you can compare Prime with the Banker’s

Acceptance rates for yourself. “Interesting,” you think, “but why does it matter?” Well, as new lending institutions begin to offer a slate of innovative new loan options, a new mortgage has emerged that is based on the Banker’s Acceptance rate: offering a mortgage rate of 1% over the 3-month Banker’s Acceptance.

If you compared the rock-bottom prime-based variable mortgage rate - prime less 0.5% to 0.7% - with the new adjustable BA-based rate, you would find that the BA-based rate would have delivered significant savings over the past several years, as rates were dropping. There are two reasons for this. Firstly, the BA-based rates have historically been considerably lower than prime. Secondly, the prime rate tends to be “stickier” in an environment where rates are falling. Often, the more fluid, market-based BA rates deliver the rate change more quickly.

Any variable- or adjustable-rate Ontario mortgage is an excellent option when interest rates are either dropping or stable. Not surprisingly, they’ve been a very popular choice in the past few years. There are some rumblings now that rates may begin to increase, but flexible-rate mortgages still remain an excellent choice for those looking to save some interest.

As always, you should consult with a mortgage professional to find the mortgage that suits your personal financial needs. An independent mortgage broker can provide you with information on a broad range of mortgage options from a wide variety of lending institutions, so you can compare features and options at a glance.

And remember, it’s worth taking some time to look beyond prime and explore what’s “under the floor” in mortgage options!

Hector

Michael Challiner asked:


APR - This stands for Annual Percentage Rate. It enables you to compare the full cost of the mortgage. Rather than just being an interest rate, it includes up front and ongoing costs of taking out a mortgage. The formula for calculating APR is set by Government Regulations and therefore enables direct comparison of the cost of mortgages.Capital and Interest Mortgage - This is when part of your monthly payment contributes to paying off the outstanding mortgage in addition to paying the interest on the mortgage. The payments are structured so that at the end of the term, your mortgage will have been completely paid off. For this reason this type of mortgage is also called a Repayment Mortgage.Capped Rate - This is a mortgage where the lender agrees that the interest charged will never exceed a specific percentage. This deal lasts for a set period of years. After the set period, the rate usually reverts to the lenders standard variable rate. During the capped period, the interest charges can move up and down with the lenders interest rate - but cannot exceed the capped rate.Cashback - An amount, either fixed or a percentage of a mortgage, which you can opt to receive when you complete your mortgage. The lender may well claw back this money through a higher interest rate.CAT marks/standards - CAT stands for Fair Charges, Easy Access and decent Terms. They were created by the Government in an attempt to provide consumers with simple, clear financial products with straightforward, easy to understand terms. A CAT mortgage will have no arrangement fees, no redemption fees and will have interest calculated daily. It will also have a minimum loan of just £5000, offer you repayment flexibility and the mortgage should be portable should you move home. Finally, you will not have to buy the lender’s insurance products and there will be no penalties should you find yourself in arrears but can subsequently catch up.Completion - This is end of the house buying process, when the funds are transferred and the keys are handed over. Happy moving!Contract - A contract is a binding agreement between the buyer and seller. In the context of house buying, after the contract is signed by both the buyer and the seller it is then ‘exchanged’ between the respective solicitors for a set completion date. At that point, the contract is legally binding on both parties.Conveyancing - This is the legal process in which property is bought and sold. You can do it yourself or hire a solicitor or specialised conveyancer to perform the tasks for you. The buying of a freehold is much less complicated than the buying of a leasehold. Discounted Rate - This is where the lender makes a guaranteed reduction off the standard variable rate for an agreed period of time. After the discounted period ends, the mortgage usually moves to the lenders’ standard variable rate. Watch out for redemption penalties that overhang the initial discount period.Early Redemption Charges - Redemption is when the borrower pays off the capital and the interest on the mortgage and thus owns the property outright. Early redemption fees are the charges incurred for paying off the mortgage early, either to buy the house outright, move or re-mortgage. Always ask about early redemption charges before you agree a mortgage. Endowment - Endowments are life assurance policies with an investment element designed to pay off the outstanding capital on an interest-only mortgage. There are a few types of endowments, such as ‘with profits’, ‘unitised with profits’ and ‘unit-linked’. In the 1980s, these were sold by salesman who seemly suggested that these policies were “guaranteed” to pay off the mortgage at the end of the term. However, the investment returns on these policies have fallen to below what was previously considered to be the norm. Consequently, many policies are not worth what was originally forecast and may not fully repay the money borrowed at the end of the mortgages’ term. Equity - In housing terminology, equity is the difference between the value of the property and the money owed on the property. So if the property is valued at £200,000 and you owe £150,000 on the mortgage, you have equity of £50,000. If you sold at that moment, you would receive £50,000. Should the value of the home be less than the mortgage outstanding then you have negative equity. Freehold - Owning the freehold means that you own the total rights to the property and the land on which it is built. HLC - This is the Higher Lending Charge (it was previously known as a Mortgage Indemnity Guarantee). It is levied by around three quarters of all lenders on clients who cannot afford to put down a deposit of 10% of the price of the property. In practice it is a type of insurance aimed at protecting the lender should you default on your mortgage when the value of your home is less than the capital you borrowed. The insurance only provides cover for the lender, not you, and typically costs £1,500. Homebuyers Report - A property survey aimed at providing more information than a mortgage valuation but less information than a full structural survey. It will help the borrower to decide whether to purchase and help the lender to decide how much to lend.Interest Only Mortgage - This is a mortgage where your monthly repayments only pay the interest on the mortgage. Therefore, at the end of the mortgage you still have to repay the full sum you borrowed. You are advised to have a separate investment vehicle into which you make payments aimed at building up a fund capable of paying off the mortgage capital at the end of the term. Typical investments include ISA’s, a pension or an endowment policy.IFAs - Stands for Independent Financial Advisor. These advisors are regulated by the Financial Services Authority. To be classified as “independent” they have to be able to offer you the full range of products from all financial product providers. They are not entitled to describe themselves as “independent” if they can only offer products from a restricted panel of financial companies. A Financial Advisor can be one man band or work for very large companies. Before they make any recommendation, an IFA must carry out a detailed fact find so they fully understand your financial circumstances. They can then make their recommendations to suit your personal circumstances.ISA - An ISA is an Individual Savings Account, which is a tax-free method of owning shares, building up a cash savings account or a life assurance policy. You can use an ISA to build up a capital sum to repay an interest only mortgage. Leasehold - If your property is leasehold, ownership of the property reverts to the Freeholder at a set date. Many houses were originally sold on 999 year leases which means that 999 years after the initial date of the Leasehold, ownership of the property reverts to the Freeholder. Building in multiple occupation such as apartments, are always sold on a leasehold and usually have a much shorter leasehold period - 100 and 125 years is quite common. Often, with a block of apartments, the apartment owners individually own the leaseholds whilst a management company, in which they hold shares, owns the freehold. These days, however, leaseholders who live in the property have the legal right to buy their freehold under terms laid down by UK law. Life Insurance - This can also be called Term Insurance or, when specifically linked to proprty purchase, as Mortgage Protection Insurance. It is designed to pay a tax free lump sum in the event of your death to enable your mortgage to be repaid in full. There are a number of variants such as Level Term Life Insurance and Decreasing Term Life Insurance. At the outset you take out insurance for the full sum you have borrowed from your mortgage lender and for the same number of years as you have agreed on your mortgage. These insurance policies do not have any investment or surrender value. The premiums are based on a number of factors - the main ones being the amount of cover you need, your age, health and how many years you want to be insured for.Lock-In Period - This is the minimum period you have agreed to stay with the lender. Depending on the deal, it could be as low as six months up to the whole of the term. Should you wish to repay the mortgage or remortgage during the lock-in period, you will invariably have to pay redemption penalties. Always make sure you know how long you are locked in for with your mortgage.LTV - Literally means Loan to Value. This is a measurement of the mortgage amount against the value of the property or the price that you are actually paying. A £157,500 mortgage on a property for which you paid £175,000 would be a LTV of 90%. Lenders tend to charge a Mortgage Indemnity Premium on mortgages with a loan to value of anything about 75%. Some don’t so ask about this.MIG - This has now changed its name to HLC. See above.Mortgage - A mortgage is a long-term loan taken out in order to buy a property with repayment secured on that property. So if you don’t keep to the repayment terms, the lender can repossess the property, sell it and retain the money they are owed. Any balance is then paid to you. If the property is sold for less than you owe your lender, you still remain liable to repay the shortfall. Mortgage Advisor - On October 31st 2004 the selling of mortgages in the UK came under the remit of the City watchdog, The Financial Services Authority (FSA). As from that date any person providing mortgage advice had to be registered with the FSA and abide by its rules of conduct, methods of operating and training programmes etc. The objective has been to improve life for the consumer by offering better protection, clear information and access to redress for poor advice. Negative Equity - Negative equity is when the value of your home is less than the amount that you owe on your mortgage plus any other loans secured against it. It can happen very easily if you take out a 100% mortgage or if property prices fall. (Also see Higher Lending Charge)Portable - This is a measure of how easy it is to move a mortgage from one property to another should a property move be required. This is vital if you are moving during your lock-in-period and wish to avoid redemption penalties.Repayment Mortgage - This is the same as a Capital and Interest mortgage - see above.Searches - During the conveyancing process, the buyer has to be sure that the seller has title to the property and identify any matters may affect the prospective owners ownership of the property. For example, whether the property is affected by any proposed road building, whether there are preservation orders affecting the property, is it a listed building and has it been built in accordance with planning conditions and building regulations. Searches will also show whether there are mines under or close by the property. This information is obtained by the person undertaking the conveyancing from HM Land Registry and the relevant Local Authority. These investigations are collectively known as “Searches”.Self-Certification - Should you have difficulty in providing documentation that “proves” your income to a prospective mortgage lender, you may need a self-certification mortgage. In essence you personally certify what your full income is. If you receive high bonuses, or work seasonally or on commission, or are self-employed this may be your best option. You declare your income plus some evidence that your declaration is reasonable. Ideally lenders want to see as much guaranteed income as possible. To compensate the lender for the increased risk they are taking on a self-certified mortgage, they will charge you a higher rate interest, typically 1% over their standard variable rate.Stamp Duty Land Tax (commonly known simply as Stamp Duty) - You pay Stamp Duty Land Tax on property like houses, flats, other buildings and land. If the purchase price is £120,000 or less, you don’t pay any Stamp Duty Land Tax. If the price is more than £120,000, you pay between one and four per cent of the whole purchase price, on a sliding scale. Upto £120,000 - No duty payable £120,001 to £250,000 - 1% duty payable*£250,001 to £500,000 - 3% duty payable£500,001 and over - 4% duty payable *If you’re buying a property an area designated by the government as ‘disadvantaged’, you don’t pay any Stamp Duty Land Tax if the purchase price is £150,000 or less. Did you know? Stamp Duty was originally introduced by William of Orange when he was King of England.Structural Survey - The most thorough report you can get on the condition of the property you are considering to buy. The surveyor will look in detail at the inside and outside of the property and will tell you if the property is structurally sound. All major and minor defects in the building will also be listed and should tell you what maintenance work may be needed either now or in the future. You should make sure the scope of the survey is agreed in writing before you commission it. Should the survey identify problems, use them to negotiate a reduction in the price before you exchange contracts.Variable Rate - This is when the interest rate you pay on your mortgage can go up or down depending on changes to the lender’s standard variable rate. If you have a variable rate mortgage your monthly mortgage payments will change whenever the lender changes the interest rate.Valuation - This is where a valuer appointed by your proposed lender, visits the property in order to estimate its current value. This value is then used by the lender as a basis for its security and to calculate its Loan to Value Ratio. The borrower never sees the valuation. With some mortgage deals the lender absorbs the cost of the valuation but in many cases the borrower has to pay upfront.

Marcia

The House Team Of Mortgage Intellingence asked:


Contrary to what you may think, you don’t manage your credit applications and payments in a vacuum. Your credit behavior (as some have learned the hard way) is tracked by credit bureaus such as Equifax Canada and TransUnion of Canada.

This information is tabulated, and then you are assigned a credit rating. It’s important for you to maintain as high a rating as possible. The following information shows you how you can be sure to earn a good score, and why it’s so important to do so.

Lenders Have Access To This Information.

Think about it. When you decide to apply for a mortgage for a home purchase, or a hefty loan for home renovation - don’t you want A+ right up there beside your good name?

Your Good Name Is Really What It’s All About.

In the financial world, your credit profile is your reputation. If you have a good record, it means smooth sailing ahead for you. If your record isn’t all it should be, you might be in for a bit of rough weather when it comes to acquiring the monies you need — at the interest rates you want.

Your Payment History.

Credit card debt — is one of the most important factors considered when your score is being tabulated. Any missed, late, or neglected payments are duly noted. Not only does a prompt payment history buff your credit image — it saves you money in interest, and assures a quicker retiring of that debt too.

Timeliness Of Payments.

Actual amount of payments, the state of your credit card balances versus credit available, the number of cards you own, the frequency of your requests for more credit - These are just some of the tidbits of personal financial information that make up your credit profile. This comprehensive history is compiled to show lenders how reliable a debt risk you are. To put it simply they want to know whether or not you are credit worthy.

Your credit score is established with a mathematical formula.

Various factors are weighed and balanced and given a certain percentage value towards your final score. Credit bureaus also take into consideration — in addition to factors already mentioned — your existing debt burden, your actual and potential income (remember you do give out these details when you apply for credit), your debt to income ratio, your past financial problems (any bankruptcy or foreclosure remains a long time on record), your job stability -

essentially any piece of public information that helps build an accurate as possible risk assessment of you as debtor.

Your Credit Rating Is A Fluid And An Ever-Changing Thing.

It is dependent upon your present financial circumstances and any actions you make. The credit bureaus always follow your money trail. Because the formation of your profile is an on going thing, it’s vital for you to consistently practice reliable and responsible debt handling. The good news? The ever-changing quality of your credit rating allows you to continually aim for a higher score. Think of your rating — not as a burden — but as a challenge and an opportunity.

Infrequent Requests For Additional Credit?

That’s a really good sign to a lender. Keep in mind that mortgage and loan shopping won’t impact you negatively if it’s done in a concentrated time period. The credit bureaus interpret this flurry of activity positively — as long as it doesn’t occur too frequently. You want to look savvy, not desperate.

How Much Plastic Is Too Much?

Too many credit cards red flag you to potential lenders. Limit your cards to three or four, and try to maintain longtime use of at least one card. This is a key way to build up an excellent credit history. The amount of credit you use, versus credit available, is really telling too. Keep your balances low.

It’s Your Right To Pull Up Your Credit Report Profile.

This is something that is in your interest to do so. (You can do this online at www.equifax.com). Experts advise you to check it out at least once a year. Doing so gives you the opportunity to correct any errors or misinformation that may be there. Practice reliable and responsible debt management.

Then, when you do actually need money for a major undertaking (like the purchase of a home), your credit rating will be an asset, not a liability.

Matthew

The House Team Of Mortgage Intellingence asked:


Real estate has been an outstanding investment in most parts of Canada in the past few years. Home valuations are continuing to rise and have broken through the peak of their 1989 “bubble” in many areas of the country. That’s good news for Canada’s 7.5 million home owners, who are enjoying an average increase of $43,000 in real estate wealth since the upward trend took hold in 1998.

The hot housing market is being fuelled by mortgage rates which are the lowest they’ve been in almost 50 years. First-time home buyers are finding the rates attractive, and home buyers are lining up to purchase their first home or to upgrade to their dream homes. Housing statistics have been capturing headlines for months and the boom is noticeable on key economic indicators.

But the news isn’t just about rising valuations or Canadians moving into their new homes. Quietly in the background, there is a significant trend to refinancing. Canadians who have built up the equity in their home over the last few years are borrowing against that equity in record numbers. According to a report from a major bank, since 2001, Canadian households have taken out approximately $20 billion in cash out of their homes through mortgage refinancing and home equity loans.

We might thank the Ontario mortgage industry for the surprising resilience of the North American economy. In the past two years, the North American economy has endured numerous economic fallouts but consumer confidence remains reasonably strong - at least partly because homeowners have seen some of their losses offset by an increase in their real estate wealth. We find that we are sitting on (and sleeping in) the best-performing investment we own. And even if they have no plans to sell, homeowners have found that the return on their investment is still as good as cash in the bank.

That cash has been a key economic stimulus both here and in the U.S., where the trend is even more pronounced. As Canadians look beyond the view of a home as primarily shelter, mortgages become a valuable resource - and homeowners aren’t necessarily waiting for renewal time to cash out some of their gains.

So where is the money going? The equity being pulled out is often being used to pay down other more expensive debt. Credit card interest rates are shockingly high and - as a nation - our credit card and other consumer debt is continuing to grow. And much of the money is being used for increased spending. There has never been a better time to borrow against home equity to build the kitchen of your dreams, add a new wing, embark on the landscaping project you’ve wanted for years, enjoy the vacation you’ve always dreamed of, or help with the high cost of post secondary education. However, as always, never let your enthusiasm for the opportunity to spend get in the way of good common sense about debt management.

Viola

cookingmomma asked:


If a homeowner has a first mortgage and a second mortgage, and would like to refinance the first mortgage at different terms, can this be accomplished - does the existing second mortgage put a monkey-wrench in refinancing the first?

Mary

dre_gh asked:


I currently work in a distribution center, and i have a bachelors in economics and psychology. I am interested in becoming a mortgage loan officer so i took a 24 credit hour course in residential mortgage lending but unfortunately i haven’t been able to find a job because i do not have any mortgage or lending experience. What else should i do to achieve my carer goal?

Darlene

Gem asked:


I am a first time house buyer and need to find a mortgage wihtin the next 16 weeks. I would like to know what banks are doing the best mortgage deals at the moment, can anyone help?

Adrian