Have you been turned down by your bank when you’ve attempted to secure a home loan? Have you been denied a credit card and other types of lending? Do you want to get approved for financing for the home of your dreams?

How to Qualify For a Mortgage

Before you get a mortgage, it is a good idea to be familiar with the types of loans and the criteria that are used to qualify you. There are several different factors that you should be aware of, including credit score, down payment, and closing costs. You should also be informed about private mortgage insurance, job history, and assets.

Down payment

One of the more popular home buying strategies is to put a down payment down on the house. This can be done in many ways. A gift or loan from a family member can help, but you have to be sure you’re going to use it. It’s also a good idea to check out your community’s down payment assistance programs to see if you can qualify for one.

A down payment can be anything from a few hundred dollars to well over a million. Depending on your credit score, the down payment requirement may vary. Your down payment will affect the amount you pay for the house and your interest rate. Putting a down payment down on a house can also save you money in the long run, since it will lower the amount of interest you end up paying.

Credit score

If you want to get a mortgage, you’ll need to have a good credit score. This will make it easier for you to qualify for a loan and pay less interest.

Credit score is calculated from information found in your credit report. The score ranges from 300 to 900, and a good score is above 660. A low score shows you are risky and can’t afford to keep your debts in check.

You will also see a negative impact on your credit score if you default on a loan or if you have a high credit utilization. This is when your balances on your revolving credit accounts are higher than your total available credit.

Job history

When applying for a mortgage, lenders want to know that you will be able to keep your income stable. One of the most important factors in this regard is your employment history.

Most lenders require at least two years of consistent work. However, there are some exceptions to the rule. For instance, recent college graduates can qualify for a loan with a short work history.

Depending on the type of loan you’re applying for, your employment history may be a factor. Lenders are more likely to overlook a high debt-to-income ratio when lending you money. This is because they want to make sure you’re not likely to default.

Private mortgage insurance

Private mortgage insurance is a form of insurance which protects the lender. Having this coverage can save the lender money in the event the borrower defaults on his or her loan.

The insurance is usually added to the regular mortgage payment. It may also be purchased in a lump sum or in the form of monthly premiums. There are many companies which provide this type of coverage, so the price can vary.

While there is no specific rule of thumb, the average cost of this policy is between 0.58% and 1.86%. Some states have more stringent requirements than others. For example, Connecticut requires that the PMI policy be from a licensed company and that a good faith estimate of the PMI cost be made before the mortgage is closed.

Closing costs

Closing costs for buying a home can be a confusing topic. Fortunately, there are a few basic guidelines that can help you understand how to avoid paying too much.

The first thing to know is that closing costs are separate from the down payment. They can range from two to five percent of the loan amount. If you have a low down payment, your lender may chip in to help cover these costs. This can be a good trade-off.

Several factors determine how much you will pay in closing costs. These include the size of your mortgage, the type of property you are purchasing, and the number of third party fees you will be required to pay.

Our mortgage brokers have access to the best rates on 5 lenders including TD, RBC, Scotia, CIBC, and BMO. We get you the lowest mortgage rate in Calgary to match your needs and budget.

What You Need to Know About Mortgages

If you are looking for an affordable mortgage, it’s a good idea to shop around and compare rates. There are a number of factors to consider including interest rate, fees and charges. The more you understand, the better informed you can be about your choice.

Interest rates

If you are interested in buying a house, it is important to understand how interest rates on mortgages work. This will give you an idea of how much you will need to pay on your monthly installments.

For starters, there are two main types of mortgages: fixed-rate loans and adjustable-rate mortgages (ARMs). Fixed-rate loans last for the life of the loan while ARMs can change on a regular basis, typically every six months or so.

While you might be paying off your mortgage, your credit score and the state of the economy can also play a role in determining your interest rate. Although lenders don’t want to lose money, they won’t commit to a low interest rate for years on end.

One of the most effective ways to get a better idea of what your interest rate might be is by looking at the yield curve. This is the rate of interest at which mortgage-backed securities (MBS) are traded.

Fees and charges

When you buy a home, you’ll pay a variety of fees and charges. The most common are closing costs. However, not every lender charges these fees. There are some ways to avoid them.

One way is to choose a lender that doesn’t charge an application fee. This is a small fee to help the lender process the loan paperwork.

Another fee to be aware of is prepaid interest points. These are fees paid to the lender in exchange for a lower interest rate. They are also known as mortgage points or discount points. Some lenders even allow borrowers to purchase prepaid points in increments as low as 0.125%.

Lenders may also charge an underwriting fee. This is a similar fee to the origination fee but is charged by the lender to ensure that the loan is appropriate for your situation.

Variable-rate mortgages

Variable-rate mortgages offer a variety of benefits to homeowners. These include lower interest rates than fixed-rate mortgages and the ability to change your monthly payment without having to refinance. However, they have their own set of disadvantages.

Choosing the right type of mortgage is important. You need to consider your financial situation and your risk tolerance. If you plan to stay in your home for several years, variable-rate mortgages may be the right choice for you. But if you plan to sell your home in less than three or seven years, you might be better off with a fixed-rate loan.

Fixed-rate mortgages typically have a lower initial rate and a higher rate after the introductory period. That way, you can pay off your mortgage faster.

Variable-rate mortgages, on the other hand, fluctuate with the market. The lender can raise the interest rate at any time. This means that you’ll need to adjust your household budget to cover more of your mortgage payments as interest rates rise.

Fixed-rate mortgages

Fixed-rate mortgages offer borrowers peace of mind, since they know exactly how much they will have to pay each month. Depending on the lender, this may be a no-cost loan, or it may involve closing costs and other fees.

Mortgage lenders provide different rates based on your personal financial profile. This may include a credit score, debt-to-income (DTI) ratio, and other factors. The best way to compare options is to talk to a mortgage loan officer.

Most fixed-rate mortgages come with a term of 15 or 30 years. These long-term mortgages are a good choice for borrowers who plan to stay in the home for a long time.

During the early years of the loan, the monthly payment will go towards interest. Later, the payment will be applied to the principal. Eventually, all of the payments will be used to pay off the loan.

Adjustable-rate mortgages

Adjustable-rate mortgages, also known as ARMs, are a loan where the interest rate is variable. These mortgages are usually used when the buyer is looking for a lower interest rate or has plans to sell the home. But there are a few things to consider when choosing an ARM.

First, it’s important to understand how ARMs work. This means you need to understand the difference between fixed-rate and adjustable-rate mortgages.

If you choose an ARM, you’ll enjoy a low initial interest rate for the first few years. However, once the rate adjusts, your payment may increase. To keep your monthly payment from rising too much, you need to have a payment cap.

The payment cap limits your interest rate change in percentage points and dollars over the life of the mortgage. For example, a payment cap of 1% over the start rate is standard for a loan with a five-year fixed term.

Mortgage Hound is a team of mortgage brokers who are working to simplify the process of getting a mortgage. We can help you compare rates, find the right mortgage program, and get started.

How a Mortgage Calculator Can Help You Buy a Home

When you’re considering purchasing a home, there are many factors you’ll want to consider. You’ll need to look at your credit score, down payment, interest rate, and homeowner’s insurance. It can be a bit overwhelming, but using a mortgage calculator can help you make smart decisions.

Down payment

A down payment calculator helps you get a good sense of what your monthly mortgage payment will be. You can input the price of the house you plan to buy and the amount you can afford to put down. Then, you will be able to compare your options and find the best loan deal.

There are many types of down payment calculators. Some are designed specifically for homebuyers and will show you the costs involved with a down payment, including a percentage of the purchase price. Others will estimate how much money you will need to make your down payment and include taxes and insurance in the calculations.

One of the most helpful down payment calculators is the one you can find on a mortgage website. This calculator will tell you the monthly payments you can expect, as well as how much your down payment will decrease the size of your loan.

Interest rate

A mortgage calculator is a useful tool for calculating the monthly payments and interest associated with a new loan. The calculator also displays other home costs like HOA fees, insurance, and taxes. Using this information can be a good way to determine whether a particular home is within your price range and if you can afford it.

While a calculator is not going to provide you with the exact figures, you can still use it to compare your options and find the best deal. If you’re shopping for a loan, you can use it to compare rates and find out which of the many loan types is right for you.

One of the more dazzling aspects of a calculator is its ability to display more than just your mortgage payment. Other features include an amortization table that shows your principal and interest payments on a month-to-month basis, as well as an interactive chart that shows you how much you owe in the end.

ARM loan

If you are in the market for a new loan, an adjustable rate mortgage (ARM) calculator can help you figure out what your monthly payments will be. You can then compare your monthly payment to fixed-rate loans.

An ARM is not for everyone, but it can help homeowners save money. Those who plan to live in their home for a long time may want to choose a fixed-rate loan. However, those who are planning to move within a few years should consider an ARM.

The initial interest rate on an ARM is usually lower than a comparable fixed-rate loan. This allows the borrower to pay off their loan quicker. But, when the interest rates rise, the payment can become too high.

It’s important to remember that all ARMs carry risk, regardless of the type. They are often priced lower than fixed-rate products, but they are also more susceptible to market changes.

Homeowner’s insurance

There are many different factors to consider when it comes to homeowners insurance. Whether you’re buying a new home or refinancing your existing one, make sure you have the right protection.

Mortgage lenders typically require homeowners to carry a certain amount of insurance. This coverage can be an upfront payment, or a monthly payment.

Homeowner’s insurance may protect your home from fire, flood, storms, or theft. It can also cover liability claims. If someone gets injured on your property, liability coverage is a good way to cover medical bills.

Liability coverage can be a high-priced item, so it’s important to choose a policy that fits your needs. For example, if you have a lot of valuable items, you might want to include a personal property provision in your policy.

HOA fees

If you are planning to buy a home in an association-governed community, you’ll need to estimate your monthly HOA fees. These can be a significant portion of your housing costs. A mortgage calculator can help you visualize the cost of these payments.

The amount of HOA fees you’ll pay depends on the type of unit you’re purchasing and the amenities offered in the neighborhood. For example, large single-family homes and older buildings may require more maintenance. On the other hand, some condominiums offer 24-hour concierge services.

You can estimate your mortgage payment and mortgage insurance premiums using a mortgage calculator. It adds up the cost of HOA fees, property taxes, and mortgage insurance.

Your HOA fees are used to pay for the maintenance of the common areas and amenities in your community. They also cover a reserve fund, which can be used to fund big projects like roof replacements.

We've been providing mortgage services for over ten years. Whether you're a first time home buyer or an experienced investor, we have the mortgage solution to suit your needs.

What You Need to Know About Mortgage Rates

There are several things you need to know about mortgage rates. Some of the most important aspects include the APR, what happens to the rate when you refinance, and how to get a lower rate. You can also learn more about the factors that can affect the loan to value ratio.

Average APR on 30-year fixed mortgage

APR or Annual Percentage Rate is the annual cost of a loan. It includes the interest rate, the points, and the fees. The APR is more accurate than the basic interest rate because it factors in all of the costs associated with borrowing.

This is an important factor when shopping for mortgage rates. In fact, if you don’t shop around for the best rates, you could be paying more than you need to for your mortgage.

If you’re a first-time home buyer, a traditional 30-year fixed mortgage can be a good option. These loans typically have lower rates than other types of mortgages, which makes them easier to afford for most people. Those with less-than-perfect credit might be able to qualify for an adjustable-rate mortgage (ARM).

For first-time home buyers, a mortgage with a low interest rate and a higher down payment can make buying a home possible. However, you should also consider your lender’s experience and responsiveness.

Average APR on 5/1 ARM

If you’re interested in purchasing a home, but don’t have the funds to pay for it outright, you might want to consider an adjustable rate mortgage. These loans typically last for 30 years. They come with interest rate caps that limit the amount of interest that can rise each year.

You can choose from two main types of ARMs. The first type is known as a hybrid ARM. This option has a fixed interest rate for the first few years. After that, the rate will fluctuate, often following a benchmark index. In addition, you can also choose an interest-only option.

Another type of ARM is a 5/1 ARM, which has a fixed rate for the first five years. It then adjusts annually, based on the prevailing interest rate and margin.

These types of ARMs are often lower than a fixed-rate mortgage, which means your monthly payment is reduced. But they come with some risks. When the interest rate rises, your monthly payments will increase.

Down payment affects loan-to-value ratio

The loan-to-value ratio (LTV) is an important factor in a home purchase. It’s calculated by dividing the loan amount by the current appraised value of the property. A higher LTV means a higher risk for the lender. Generally speaking, a good LTV is less than 80%.

Increasing home prices can lead to higher LTV ratios. On the other hand, lower home prices can lower the amount of money required to buy a home. Having a high LTV can mean a high monthly payment, or even foreclosure. In addition, lenders may charge a higher interest rate for loans with a high LTV.

Ideally, a home buyer should have a loan-to-value ratio of no more than 80%. A lower ratio can make refinancing easier, and help to prevent foreclosure. But it’s not always possible. Especially during a seller’s market, lowering your LTV can be a difficult process.

If your LTV is too high, you’re likely to be denied a loan. You can try to lower it by making extra payments. Taking out a piggyback loan can also help.

Refinancing can lower your rate

Refinancing is an important tool to help you pay off your mortgage faster, reduce your interest payments and save money. In addition, refinancing can be a way to access your home equity without selling your house.

There are several benefits to refinancing, but there are also risks. If you are thinking about refinancing your mortgage, it is a good idea to discuss your options with your lender.

Taking advantage of a lower rate can mean thousands of dollars in savings over the life of your loan. This is especially true if you are planning to stay in your home for many years.

If you are planning to sell your home in the near future, refinancing is not the best option. The higher interest rates you will pay over the lifetime of your new loan will probably offset the benefit you will receive.

If you are interested in refinancing your mortgage, you can talk to your lender about how much you can save. Different lenders offer different loan products, so you may be able to find a rate that suits your needs.

At Mortgage Hound, we offer flexible mortgage solutions with great rates and outstanding service. Our Calgary mortgage brokers are passionate about finding the right financing for your needs. We look forward to working with you!

What You Need to Know Before You Get a Mortgage

There are many things that you need to know before you get a mortgage. These include your down payment, the interest rate, closing costs, and private mortgage insurance. You’ll also want to consider your credit rating.

Down payment

If you’re putting together a mortgage application, one of the first things you’re going to want to do is decide how much of your total income you can afford to spend on a down payment. While there are a number of programs out there that allow for a down payment of as little as three percent of the purchase price of the home, a minimum down payment of at least five percent is a must. Buying a house is a big decision, and you don’t want to get into debt if you don’t have to.

The best way to figure out what you can afford is to make a list of your essential expenses, such as housing, food, transportation, medical costs, and insurance. Next, calculate how many months you have to live on these expenses. You’ll need at least three to six months.

Closing costs

When you get a loan for your home, the lender will collect closing costs. The cost is typically a percentage of your mortgage amount. Depending on the size of your mortgage, you could pay between 2% and 5% of your mortgage amount.

Besides the fees that the lender pays, there are other fees that you might incur. Your homeowner’s insurance premium is one such fee that you’ll have to pay. It’s also worth shopping around for the best rate and terms.

If you’re refinancing, your closing costs may be different than if you’re purchasing a new home. For example, you might not have to pay transfer taxes, and the costs of your homeowners insurance may be reduced.

Most of the time, the amount you’ll pay for closing costs depends on your lender’s fees, your home’s value, and the location of the property. Typically, the more expensive the home, the higher the closing costs.

Interest rate

The average interest rate on a Danish mortgage loan has more than doubled since the start of the year. It’s not surprising given the recent influx of immigrants, the rise of the Berlin wall and the general uptick in home sales.

A mortgage is a huge financial commitment, and borrowers have to repay the money lent to them. This is why it is a good idea to do your homework before you sign on the dotted line. There are several factors to consider, including the price of the property and the corresponding interest rate. Luckily, most lenders aren’t in the business of handing out free money, so you’ll have to be smart about your choice.

In the context of a mortgage, the best way to gauge whether or not you’ll actually get your money’s worth is to compare rates in the region in which you live. As a rule of thumb, you should shop for the cheapest rate that’s still a reasonable deal. For example, you could expect to spend about 5% on a 30-year mortgage in the Bay Area.

Private mortgage insurance

Private mortgage insurance or PMI is an extra fee that homebuyers with low down payments may be required to pay. This type of insurance is not intended to protect the borrower, but rather the lender from loss should the buyer default on his or her loan.

The costs of paying private mortgage insurance can be significant. For instance, it is possible to pay an annual premium of up to 2% of the total loan amount. With a $250,000 home, this could mean an additional cost of between $1,250 and $5,000 per year.

It is important to understand that not all loans require PMI, though it is commonplace on conventional loans. In addition, not all lenders will offer the same types of insurance.

However, the good news is that the cost of paying PMI is not prohibitive. Using the same example as above, the cost of PMI will vary depending on the size of the loan, the length of the loan, and the down payment that the homebuyer makes.

Reverse mortgage

Reverse mortgages are loans that allow homeowners to use their home’s equity as a source of cash. These mortgages are often designed for retirees with limited income and substantial equity in their home. They help to pay for expenses such as health care and home maintenance.

Before applying for a reverse mortgage, borrowers must undergo financial counseling. This can be done through a HUD-approved counselor. The financial assessment will determine whether the borrower can meet their living expenses. It will also determine whether the borrower can afford the mortgage and insurance coverage required by the mortgage.

There are several types of reverse mortgages. Single-purpose reverse mortgages are usually the least expensive. These are offered by government agencies and non-profit organizations.

One type of single-purpose reverse mortgage is the Life Expectancy Set Aside (LESA). This accounts for property taxes and homeowners insurance. As the balance of the loan becomes due, the lender can access this account to pay the property taxes.