Real Estate Curve

Everything To Know About Real Estate

Archive for the ‘Financing’ Category

Jun-14-2011

Mortgage Rates for Week of 13th of JUNE 2011 in the Greater Toronto Area

Terms Bank Rates Our Rates
6 Month 4.45% 4.40%
1 YEAR 3.60% 2.64%
2 YEARS 3.95% 3.30%
3 YEARS 4.25% 3.52%
4 YEARS 4.89% 3.54%
5 YEARS 5.39% 3.59%
7 YEARS 6.29% 4.79%
10 YEARS 6.65% 4.99%

Rates are subject to change without notice. *OAC E&OE

Prime Rate is 3.00%

Variable rate mortgages from as low as Prime – .80%

Rates based from Dominion Lending Centres Prestige

Posted under Financing, News
May-24-2011

Mortgage Rates for the GTA May 2011

Terms Bank Rates Our Rates
6 Month 4.45% 4.40%
1 YEAR 3.70% 2.64%
2 YEARS 4.05% 3.30%
3 YEARS 4.55% 3.52%
4 YEARS 5.19% 3.69%
5 YEARS 5.59% 3.89%
7 YEARS 6.49% 4.79%
10 YEARS 6.85% 4.99%

Rates are subject to change without notice. *OAC E&OE

Prime Rate is 3.00%

Variable rate mortgages from as low as Prime – .75%

Rates based from Dominion Lending Centres Prestige

Posted under Buyer, Financing
Feb-11-2008

What’s Bridge Financing and what do Bridge Loans Cost?

Many real estate transactions require bridge financing. This occurs when the closing date of the home you are selling may not match the date of the home you are buying. In fact you may not receive the proceeds from the sale until after you want to purchase. With a “firm” sale of your home you can usually “borrow against the sale” of your home. This is what is referred to as bridge financing or obtaining bridge loans. This financing (the bridge) is advanced and then paid back once the sale of your own home closes at a later date. It is replaced by the new and “final” mortgage.

Bridge financing loans are often necessary because of conflicting interests on the part of buyers and sellers with regards to their own timing. This is especially the case when the sale of other homes may be involved. It also occurs when closing dates of home sales do not match by design. In some cases home buyers want to take possession of the home they have purchased prior to the closing of their own home sale so that they can perform renovations before moving into it.

The cost of bridge financing varies. There is certainly mortgage interest cost – similar to regular mortgage loans. There may also be a set up fee, which is sometimes negotiable, depending on the circumstances.

Posted under Financing
Jan-30-2008

Are Mortgages liens?

In the housing world usually most houses have mortgages. A Mortgage or A Deed of Trust with a Note is a lien against that property. However legitimate mortgages are not a problem. They technically are clouds, but they are so common that it’s just expected for them to exist. And they are easy to remove; they just need to be paid off before property ownership transfer.Actually in many states any other lien except for government liens will be wiped out when buying Tax Liens and later foreclosing on them or when buying Tax Deeds. Make sure you check with the county officials and the statutes for your state. But if your state is one of them, then you can easily go and pretty much disregard mortgages. They just mean that the property is more likely to be redeemed because the entity holding the mortgage will not let the property go for taxes and rather redeem it themselves. But in that case you get your money back PLUS a great interest rate (usually).

When buying properties directly from the owner, you will need to find out the pay-off amount so you can determine if this property is worth your efforts. This is easily obtained by having the seller sign a simple form authorizing you or the title company to talk to the lender to get the figure, and then basically as part of the closing process you pay, or the title company pays, it off (and of course that amount is subtracted from what the seller gets for the property).

Posted under Financing
Jan-30-2008

Financing Gets Personal

When you decide to purchase a home you will want to be pre-approved for a loan. It shows that you are qualified to buy a home. When you do this before looking for a home you can save yourself some time, energy and frustration. Pre-approval will help you determine how much home you can afford, what your investment will be (approximate down payment and closing cost) and an estimate of what your monthly payments including principal, interest, taxes and insurance (PITI) will be. Applying for a home or real estate loan can be an eye opening experience for many people. You will have to answer many, many questions about your financial, work and residential history. Even in today’s open society, where nearly all topics are open for discussion the topic of money is still very personal for most people. While it is okay to show off a bit most people will not say exactly what they make or what they may owe to even their closest friends or family members. This is exactly what you have to do when you discuss a loan with your lender. You don’t want any surprises when it comes time to close. All questions should be answered directly and honestly both from you and from your lender. There is more to the loan process than calling around and asking what the interest rate is. Don’t be intimidated when choosing a lender. They should be willing to discuss any questions you have. Ask the questions until you understand all of the answers. Are they a mortgage broker or a mortgage banker? How long have they been in business? Is the interest rate locked in and for how long? Finding and working with a lender you trust is very important. You will want a lender who will work with you and your real estate agent. A professional to help make sure your loan will close in a timely manner. This is a team effort. To help ensure that this process is smooth and efficient you will also need to be prepared to answer all manner of personal questions. Most lenders will ask you for the last two years residence history. The previous addresses and length of time lived in each place. If you currently rent, they will want the landlords name and address for the last 12 months. Your lender will ask for your work history. They will want the names and dates of all employers for the last two years, the dates you worked and if there are gaps they want to know why. They will ask for all outstanding loans and credit cards. Have the creditors name, address and account number. Have the amount of your monthly payment, the total balance you owe and the months left to pay. You will need the names and addresses for each financial institution that you may have a savings, checking, or an investment account with. Have the balance or value and the account number. If you currently own real estate you will need the property address, estimated market value, any outstanding loan balances and monthly payment (including insurance, taxes and HO dues). Rental income if it applies. You will need to list your personal property including life insurance, any automobiles and other personal property.This is just a summary of some of the possible questions and information you will ask for or be required to give. There will probably be more as you go along with your house hunting and as the loan process progresses. Again don’t be intimidated. Lenders love to lend money they just want to know the risk. Answer the questions as honestly as you can. Trying to avoid a problem or not answering the question honestly will just cause more problems and delay or possibly cancel your loan. No one wants this to happen. The goal is to close the loan smoothly and on time.

Posted under Financing