If I may, a little walk down memory lane compared to today in terms of the Mortgage Industry. We may remember obtaining a mortgage was fairly simplistic, there were insured mortgages( less than 20% down payment) and conventional mortgages(more than 20% down payment) and the borrower qualified for the mortgage using the mortgage payment calculated using the mortgage rate.
Fast forward to today and the Mortgage environment has changed probably in more ways than you think. While there are still insured mortgages(less than 20% down payment) the conventional mortgage has now been split into insurable mortgages and non insurable mortgages. Within the insurable mortgage(down payment of 20% or more) some lenders now offer different rates if the down payment is 20%, a different rate at 25%, a different rate at 30% and a different rate at 35%. The non insurable mortgage is when the purchase of the home is for a rental, you wish to refinance your mortgage or the purchase price of the home is over $1m. Again different rates for non insurable mortgages compared to insured mortgages and insurable mortgages. Got you confused yet? Oh there is more. Now, no matter what interest rate I get you for your mortgage, I have to qualify you at a rate of 5.19% or 2% over the mortgage rate, whichever is greater. This reduces your buying power and was one of the 17 Federal Government rule changes put in place a few years ago.
Don't feel alone if the Mortgage process seems confusing and challenging. More today than ever, now is the time to reach out to a Mortgage Professional to ensure you are obtaining quality advice and mortgage product and interest rate for your profile. Let my 35yrs experience navigate you through the process. No fees to utilize my services as the lenders pay me. Evening and weekend calls welcomed. Kevin Mroczek TMG Mortgage Professional 780 213 2799