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Your Home - A Hidden Source Of Financing
Mortgage Rate Canada
Your home is more than just a place to hang your hat. In addition to
being a source of pride and protection, it can be a valuable source of equity.
With interest rates still near record lows, now may be a good time to
consider a renovation, purchasing a new car or making some investments. The
equity in your home may help you secure the necessary funds to achieve your
goals.
One way to access the equity in your home is to refinance your
existing mortgage. While this increases the size of your existing mortgage, it
may yield a lower interest rate and lower monthly payments than a traditional
loan. One caution, however; increasing the size of your mortgage means it will
take longer to pay it off. As a consequence, you will be paying more interest.
Another way to access the equity in your home is to open a line of
credit that is secured against your home. Just as with refinancing, a line of
credit may be available at an interest rate that is lower than a regular loan.
A line of credit gives you payment flexibility that is not available with a
conventional mortgage. Not only do you have control over the length of the loan
nd how you repay it, you also have the flexibility to pay off the debt at
nytime without penalty and you can control the amount of payment you make each
month — the minimum, as little as interest only, or as much as you can afford.
The larger your monthly payment, the quicker you will pay off the line of
credit and the lower your overall interest costs.
If minimizing the amount of interest you pay over the lifetime of the debt is
important, then a secured line of credit may work for you. To qualify, you
generally require 25 per cent equity built up in your home. Legal fees or
registry fees may apply.
"If you are considering leveraging your home equity, you should meet
with a qualified lending expert," says Gail Kassie, Director, Mortgages and
Home Financing Products, BMO Bank of Montreal. "A lending expert will explain
your options, offer a variety of solutions, and help you make the best decision
to suit your needs and your budget."
Information provided by BMO Bank of Montreal. For more information
visit www.bmo.com.
Related Mortgage Rate News
More Mortgage Rate rises could be on the way (NZPA via Yahoo!Xtra News)
Homeowners could be facing further rises in mortgage interest rates as world credit markets remain under intense stress.
Fed cuts fail to lower 30-year Mortgage Rates (Los Angeles Times)
They remain roughly where they were a year ago amid banks' wariness about making loans. The Federal Reserve has been slashing short-term interest rates since August with precious little effect on the one that matters most to homeowners and home buyers: the 30-year fixed mortgage rate.
Time is right to get a good Mortgage Rate (Deseret Morning News)
Despite tightened lending standards to get a mortgage, homebuyers are still calling the shots. That's especially true if you don't have to worry about selling a house in a down market, you can come up with a 20 percent down payment, and you plan to live in the house for at least five years (time enough to recover your costs and wait for a rebound in home prices).
Mortgage Rate drop to help homeowners (London Free Press)
The cost of home ownership in London has been creeping up in recent years, but it should level out as mortgage rates fall, according to the Royal Bank of Canada.
Why Mortgage Rates are still heading higher (CNN Money)
The Federal Reserve cut interest rates by three-quarters of a percentage point Tuesday, but don't expect mortgage rates to go down too. In fact, home loans could be heading higher.
Fed announcement: March 18, 2008 (BankRate.com)
funds Rate. What does this mean for your finances? When the Federal Reserve meets and changes Rates, we all have questions: What does it mean to me? Will my mortgage Rate go up or down? Is this a good time to refinance? BankRate is here to help.
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