Which home loan type is right for you?
When it comes to mortgages, it can be easy to get overwhelmed with all the different options.
Here’s a handy cheat sheet for you! Make sure to save it for later so you’ll have it when you need it.
These 5 home loans are the ones that you’ll probably consider, so let’s break them down!
Open Mortgage : Offers maximum flexibility, but also fluctuates in the interest rates. It also allows you to make large payments on your mortgage or pay off the entire mortgage without penalty.
Closed Mortgage: Are more of a commitment, that have predetermined interest rates. They generally have lower interest rates than open mortgages, and the borrower may select a fixed/variable/adjustable rate depending upon their needs or preference
Convertible Mortgage: Allows homeowners to change the type of mortgage they hold during its term. For example a home owner can start with an open mortgage and then choose to lock into a closed mortgage later.
Hybrid Mortgage: Is when there is more than one type of mortgage contained in a single mortgage registration, which could include a fixed rate portion, a variable rate portion, a line of credit portion, or any combination of these
Reverse Mortgage: Allows homeowners 55 years and older to convert their home equity into either a lump sum payment or monthly cash payment(s).
If you’re ready to learn more about mortgages, let me connect you with an amazing lender who can help you make the right choice!
