Essentially, this product is only ideal for: first-time homebuyers who want fixed payments and have limited opportunities to make lump-sum payments during the first five years of their mortgage; and property investors who need a low fixed rate and are not concerned with making lump-sum payments.

No-Frills products also won’t let you take your mortgage with you if you purchase another property before your mortgage term is up – ie, portability is not an option with this product. Portability is an important option that could save you money over the long term if the home of your dreams is within your reach before your mortgage term is up and rates have risen, which they have a tendency to do over a five-year period.

It’s understanding why these products may seem appealing. After all, during tougher economic times who has the extra cash to put down a huge lump-sum payment? And who needs a portable mortgage if they’re not planning on moving until the market picks up? But it’s important to remember that a lot can change over the course of five years – or whatever term you choose for your mortgage.

The thing is, you can still obtain great mortgage savings without giving up the perks of traditional mortgages. For starters, many lenders are willing to offer significant discounts if you opt for a 30-day “quick” close.

There are, however, other ways in which to earn your own discounts. For instance, by switching to weekly or bi-weekly mortgage payments, and by obtaining a variable-rate mortgage but increasing your payments to match those of the going five-year fixed rate, you’ll be ahead of the typical 0.1% discount of a No-Frills product within approximately three years.

No-Frills products represent a great example of why interest rates are not the only important factor to consider when deciding whether to opt for a particular mortgage product. Much like buying a car, you get what you pay for. If you don’t want a car with air conditioning, a stereo, a cup holder, and so on, then you can get the cheapest car going… but you’ll likely regret it later.

Jeremy Fleming is a Mortgage Broker in Vernon BC with Dominion Lending Centres – White House Mortgages. As a real estate investor AND Mortgage Broker, Jeremy has a high level of industry knowledge that is simply not available through traditional bankers, and many other Vernon Mortgage Brokers. Jeremy can help you with your mortgage needs here in the Okanagan and beyond. Visit him online at http://www.JeremyFleming.ca or call (250) 545-1554.
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Home refinance interest rates fluctuate just like regular first mortgage interest rates. Due to the down turn in the economy largely blamed on the sub prime fiasco, home refinance interest rates are at an all time low.

Which Rate is Best

Obviously when discussing home refinance interest rates, the lowest rate would thought to be the best, but in reality it is a combination of things that count. If a home refinance interest rate is low but the terms are not great than that may not be the best rate. The best rate would take into consideration the following ideals:

Low Rates

Term of the Loan

Fixed Rate

A fixed rate is far better than a flex rate. Home refinance interest rates that are set in a flex arm mortgage can change drastically over time. This change can leave the homeowner unable to pay their mortgage. So locking in at a rate that is slightly higher but will remain the same over time is a far better option.

The length of the loan also plays a key role in home refinance interest rates, take for example a loan for $100,000 taken out for 30 years may have a lower interest rate because it is being paid over 30 years and ultimately the interest will still be collected at a higher rate. A fifteen year loan for the same amount may have a higher interest rate but overall will be a cheaper option.

Home refinance interest rates can be researched via the internet and print material, where you can find in depth information and rate comparisons.

Want To Know More?

Click Here Home Refinance Interest Rates

Free Information and Advice http://allstaterefinance.com/home-refinance-interest-rates

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Another option you can choose for paying your loan is the interest only mortgage. Contrary to what other people say, choosing this option will give you a lot of benefits. If the rising prices for homes are making it harder for you to be able to purchase or get a home loan, this alternative option can be able to help you. Perhaps the reason why this option has been misjudged is because there are several home buyers who are unfamiliar with it. Even if they have been increasingly popular during the previous six years, there are still some people who are unfamiliar with it. Before you apply for this loan type, you should know more facts about it.

If you choose the traditional mortgage financing, your monthly payment has been applied with both the principal balance and the interest. Meanwhile if you choose the interest only option, you are no longer obliged to make a payment towards your principle. Because of this, your mortgage payments become lower. Since this option is only temporary, you must be prepared for the higher payments in just a few years. However, you can avoid the shock of future payments by having an occasional payment so that the principal can be reduced. Another way you can avoid the shock of the financial burden, you can limit the period of the interest only option to just two to three years.

Once you have chosen to use this option, you have several terms you can choose from. However, getting a short term is highly recommended. This means you must get a term period of two to three years. But still there are others who choose a longer interest only period. On an average basis, there is an available 5 year period for the option which is supplemented by a 30 years fixed rate. The other famous options include the 7 year and 10 year interest only option period.

As compared to borrowers who choose shorter interest only periods, the ones that choose the longer period will be given a higher future payment which they need to pay. So that a long term consequence of avoiding principle payments can be reverted, there are borrowers who opt to sell their houses before the full repayment is required by the lender.

However, there is a danger to this option. Since there are some markets for houses which suddenly experience a cool off, the value of the home declines. And because of this, the borrowers who choose the option suffer the consequences. Since the principal balance was never lowered, the borrower then owes the mortgage company a full amount by the end of the interest only period. Because of this, you must choose a reputable lender who will help you get an interest only mortgage on your home purchased.

I did a little research for you. For exclusive resources, guides and information for interest only mortgages, visit the #1 mortgage resource on the net: http://www.MortgageLoans-101.com

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