Let’s provide some clarity around your mortgage options.
Tandia offers a variety of mortgage types and terms to suit your needs, all with competitive rates. If you are a new homebuyer or need a refresher course on the options available, we’ve got you covered.
Fixed-Rate Mortgage
With a fixed-rate mortgage, the interest rate remains the same for the entire length of the loan. With this type of loan, your monthly payments remain consistent, which makes budgeting easy. Predictability can be a great thing!
Variable Mortgage
With a variable mortgage, the interest rate fluctuates periodically based on changes in the market. Depending on conditions, a variable rate can be an attractive option, but always keep in mind that payments could change over time depending on increasing or decreasing market conditions.
Closed Mortgage
With a closed mortgage, a holder would typically encounter penalties if they pay off the mortgage early or refinance or negotiate terms before the term ends. Closed mortgages typically have lower interest rates compared to open mortgages since they offer the lender more predictability around interest income over the agreed-upon term.
Open Mortgage
An open mortgage allows the holder to pay off the entire mortgage balance at any time without penalties. Open mortgages typically have higher interest rates compared to closed mortgages since they don’t offer the lender as much predictability or stability around the interest income throughout the agreed-upon term.
High Ratio Mortgage
A high ratio mortgage is a mortgage loan higher than 80% of the lending value of the property. With this mortgage type, the loan’s value is large in comparison to the property value. This mortgage type typically allows homebuyers to enter the market earlier and without a full 20% down payment, but you’ll need to take out mortgage insurance, and there are other costs and considerations to think about.
Conventional Mortgage
A conventional mortgage is a loan for no more than 80% of the appraised value or purchase price for a property. In order to qualify for this type of mortgage, your down payment would need to be 20% or more of the purchase price on your home.
Variable Rate Closed Mortgage
With an interest rate that fluctuates with the prime rate, this mortgage type can benefit you when rates are dropping. This type of mortgage comes with several conditions to consider, since your payments will go up if rates rise.
Variable Rate Open Mortgage
With this mortgage type, you get the flexibility of an interest rate that fluctuates with the prime rate, as well as the option of paying down your mortgage at any time.
Managing Your Mortgage –
How to Switch, Renew or Refinance
Your home is an important part of your life and your identity. If your current mortgage term is ending, or you’re just looking to make some changes to your current arrangement, it pays to investigate your options. Let us walk you through those OTHER mortgage decisions you may encounter as a homeowner, such as switching, renewing and refinancing, so you can be confident that your mortgage is always working for you!
New Kid on the Block –
An Intro to First-Time Homebuying
Purchasing your first home is exciting and a life goal for many people. Whether house-shopping alone, with a partner or your whole family, there is a lot to consider beyond just how many bedrooms you need. Take some time to evaluate your current situation and your dreams for the future, and let these helpful tips guide you towards a purchase you’ll be happy about.
Frequently asked questions about different mortgage options.
Should I lock in my mortgage rate?
If you prefer payment stability and protection against future rate increases, locking in may be beneficial. If rates are expected to decline, a variable option could be worth considering depending on your risk tolerance.
Can I pay off my mortgage faster?
Yes. Many mortgages offer:
- Lump-sum payments
- Increased regular payments
- Accelerated payment schedules
These features reduce interest costs over time.
How long should my mortgage term be?
Common mortgage terms range from one to five years. Five-year terms remain the most popular because they balance stability and payment certainty.
What is a Home Equity Line of Credit (HELOC)?
A HELOC allows homeowners to borrow against the equity in their home. It provides flexible access to funds and typically charges interest only on the amount borrowed.
How do I know which mortgage option is right for me?
The best mortgage depends on your income, budget, future plans, down payment, and comfort with changing interest rates. Speaking with a mortgage professional can help you compare options and select a mortgage that aligns with your financial goals.
What mortgage options are available for self-employed borrowers?
Self-employed borrowers can qualify for traditional mortgages with sufficient income documentation. Some lenders also offer specialized mortgage programs designed for self-employed individuals with alternative methods of verifying income.
Tandia's Mortgage Glossary
Looking to brush up on key mortgage-related terms and phrases? Let us help! Check out our handy Mortgage Glossary so you can navigate the homebuying process with ease.
Let's get started
There's a lot to consider when it comes to buying a home. We can walk you through every step of the way and help explore what the different options are. Let us do the leg work and find you the best rates. Contact us for helpful, friendly, easy to understand advice.
Mortgage Calculators
A mortgage calculator is a quick and easy tool that helps you estimate what you can afford before buying a home or renewing your mortgage. By entering details such as the home price, down payment, interest rate, amortization period, and payment frequency, you can estimate your monthly mortgage payments. Let us help you do the math.
It's Time for a Mortgage Review
Your mortgage should support your financial goals, not stress you out. One of our experienced advisors will go over your current mortgage details to ensure your financing is still the best fit and the best option for your needs. Contact us for a no-obligation and no cost mortgage review.
Switching your Mortgage
Switching your mortgage is easier than you think and can save you money. Switching your mortgage is often a strategic decision to secure a lower interest rate or better terms. The best time to switch is when your current mortgage is coming up for renewal. At Tandia we make the process easy. Let us do the paperwork.
We are here for you
Get in touch with us at any time, whether it’s a question about our services or a comment on how we can do things better. Your voice is number one at Tandia.
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