As you may already know, different types of mortgages and loans give you as a buyer many opportunities that wouldn’t be possible without them. When you buy a property, you should understand as much as you can about the process, as well as the questions you will be answering. This way, you’ll be familiar with how things work and you’ll find the entire process of financing to go much smoother.
You may put your money to work for you in a residential, commercial or investment property. With today’s low mortgage rates and rising real estate prices it is an ideal time to invest in real property. Real Estate provides a vehicle that allows you to enjoy the potential for market appreciation while building equity each month.
Types of Mortgage Financing
Conventional vs. High/ Low Ratio Mortgage
A mortgage where the down payment is less than 20% of the property’s value/purchase price and needs protection is HIGH and where down payment is 20% or more is LOW Ratio mortgage which does not require protection.
A mortgage that gives you flexibility to repay the mortgage at any time without penalty. Open mortgages usually have shorter terms, but can include some variable rate/longer terms as well.
A closed mortgage is a mortgage agreement that cannot be prepaid, renegotiated or refinanced before maturity, except according to its terms.
Fixed Rate Mortgages
The interest rate of a fixed rate mortgage is determined and locked in for a term of the mortgage. Lenders often offer different prepayment options allowing for quicker repayment of the mortgage and for partial or full repayment of the mortgage. read more..
Variable Rate Mortgages (VRM) / Adjustable Rate Mortgages (ARM)
These mortgages differ from a fixed rate mortgage in that the mortgage rate may be changed during the term of the mortgage. Generally, these mortgages are initially set up like a standard loan, based on the current interest rate. The mortgage is reviewed lender at specified intervals to change the payment size, amortization period or a combination of both… more about Adjustable Rate Mortgage
Whether you are purchasing or refinancing a home, condo, commercial real estate, business or piece of land, ProFunding Financial can help you find the right financing option.
- Home Purchase
- First and Second Mortgage
- Mortgage Switch
- Mortgage Renewal
- Home Equity
- Self Employed
- Other Residential
- Commercial Mortgage