Foreclosure filings were reported on 2.3 million U.S. properties in 2008, an increase of 81 percent from 2007 and up 225 percent from 2006, according to the RealtyTrac U.S. Foreclosure Market Report released January 15, 2009. The soaring number of forclosures have sent ripples through the housing and banking industry with the affects being felt by millions.

According to RealtyTrac, California, Florida, Arizona posted the highest 2008 foreclosure totals. A total of 523,624 California properties received a foreclosure filing in 2008, the nation’s highest state total. Foreclosure activity in the state increased nearly 110 percent from 2007 and nearly 498 percent from 2006. With 385,309 properties receiving a foreclosure filing in 2008, Florida documented the second highest state total. Florida foreclosure activity increased 133 percent from 2007 and nearly 412 percent from 2006. Arizona’s 2008 total of 116,911 properties receiving a foreclosure filing was third highest among the states. Foreclosure activity in Arizona increased 203 percent from 2007 and 655 percent from 2006. Other states with Top 10 totals for 2008 were Ohio, Michigan, Illinois, Texas, Georgia, Nevada and New Jersey.

With mounting job losses and a weakening economy, forclosures and mortgage delinquencies are expected to continue to rise. The nation’s unemployment rate shot up at the end of the year, reaching 7.2 percent in December — its highest level since early 1993, according to a Labor Department report release January 9, 2009. That puts U.S. job losses at 2.6 million for 2008.

However, with all this doom and gloom in the housing market, there is a glimmer of hope for senior homeowners 62 years of age and older. That hope comes in the form of a HUD Home Equity Conversion Mortgage (HECM) or Reverse Mortgage. Those who have obtained a reverse mortgage need not be concerned with the increasing forclosure rates and whether or not they can make their mortgage payments. With a HECM reverse mortgage, there are no monthly payments required. 

Borrowers remain in their homes for life and never have to worry about making a mortgage payment again. All they need to do is keep the property in good repair, pay their property taxes and keep their homeowners insurance current and paid. 

For seniors who currently do not have a reverse mortgage, now may be the time to explore the option. It does not matter if a senior is currently late on their mortgage. They may still qualify for a reverse mortgage. To qualify all borrowers on title must be 62 years or older, occupy the property as their primary residence and not currently be in a bankruptcy. That’s it! 

MLS Reverse Mortgage has helped save several seniors who were months away from losing their homes. 

So, in these tough economic times, there is still hope for seniors looking for mortgage payment relief or cash out to enjoy life’s pleasures.

Learn more online: http://www.mlsreversemortgage.com



Quick Property Sale

Buying a home is one of the most important decisions that most people will make in their lives. It’s likely to be the most expensive asset that most people will ever purchase. With the average home costing the equivalent of several years’ salary, it’s very rare that anyone can save enough money to pay for their residence with savings. The only option that most people have when they’re ready to buy a house is to borrow money in order to pay for it. A loan that is taken out in order to buy a home is known as a residential mortgage. If you’re planning to buy a home, it’s important to understand what a mortgage is and how it works.

A mortgage is a secured loan.

There are two basic kinds of loans – unsecured and secured. An unsecured loan is money that is lent without any sort of collateral, simply on the good credit of the borrower and their promise to repay it. If the borrower defaults on the loan (fails to make the required payments), the only way for the lender to get its money back is to sue the borrower in court. A secured loan is one where the borrower guarantees payment by putting up collateral. If the borrower fails to make the payments as promised, the bank or lending company has the right to take possession of the collateral and sell it to recover their money.

A mortgage is a secured loan in which the house serves as collateral. When you take out a mortgage on a home, you sign a mortgage note that essentially gives the bank partial ownership of the house. Until you make the final payment on your mortgage, the bank or lending company has the right to foreclose on your home if you fail to make the scheduled payments on your loan. That means that they can take possession of your house and sell it to recover any money that’s still owed to them on the loan.

The mortgage rate is the interest that you pay on your loan.

When you borrow money, the bank charges interest on the money lent to you. The interest is expressed as a percentage of the amount that you borrow multiplied by the length of time you take to pay it back. The length of time that it takes you to pay back the loan is called the term of the loan. Most lenders offer mortgages for terms of twenty years, thirty years or forty years. Some lenders offer mortgages for as short a term as ten years, and the most common term for a mortgage is thirty years.

There are many different kinds of residential mortgages. The best known are fixed rate mortgages (FRM) and adjustable rate mortgages (ARM). They are exactly what the names say. If you take out a fixed rate mortgage, your interest rate is guaranteed to stay the same for the life of the loan. If your mortgage rate at signing is 6.25%, it will remain 6.25% until the entire mortgage is paid off. An adjustable rate mortgage is one where the mortgage rate can change based on an index of some sort. If that index goes up, your interest rate goes up. If it drops, the interest rate drops.

There are advantages and disadvantages to both kinds of mortgages. Because a fixed rate mortgage offers a guarantee against interest rate increases, the interest rate usually starts out higher than the mortgage rate for an ARM for the same amount and term. An ARM will spell out specific conditions under which the interest rate can be changed. Generally, the rate is reconsidered every three, six or twelve months. Some ARMs have low initial rates that are guaranteed for a specific period of time – generally two to five years. After the initial period, the interest rate is subject to adjustment according to a specified schedule.

Mortgages carry other costs and fees in addition to the interest charged.

In addition to the interest, most loans also have other costs and fees associated with them. Those costs are often payable at closing, though they are frequently financed and added to the amount of money borrowed for the mortgage. Other costs must be paid before the loan is closed. The costs may include loan origination fees, a loan broker’s fee, the cost of private mortgage insurance and legal fees. Paying those costs up front can reduce the interest rate as well as the total cost of the loan.

Buying points can reduce the interest rate and the cost of your mortgage.

There are a number of ways that you can reduce the total cost of a mortgage. One of the most common is called “buying points”. When you buy or pay for points on your mortgage, you are paying part of the interest up front. One point will cost you 1% of the face value of the loan. If you’re taking out a mortgage for $100,000, you’ll pay $1,000 a point. For each point that you pay on your mortgage, the lender will reduce the interest rate by a certain amount. The exact amount varies from lender to lender. You can find mortgage points calculators online to help you decide whether or not paying points is a good idea in your situation.



Passive Income

When starting a legitimate online home based business there are so many things that cross a person’s mind. One of the biggest challenges in starting a legitimate online home based business is the person themselves. Starting a legitimate online home based business can be scary because there is so much that goes into it. A legitimate online home based business is not something you can pick up and start doing without having money and doing research. The money aspect strikes fear in the minds of many; we all worry about money even if we have a successful legitimate online home based business . Not knowing where that money is going can be even scarier. We tend to ask ourselves so many questions when starting a legitimate online home based business. How much money will I need? How many hours will I have contribute to this business? Will I be successful? How long can I do this for? Am I smart enough to pull this off? Will someone help me? Believe it or not; if you have the right attitude you can have all of these questions answered and be happy in no time.

Probably the most asked questions by people are? How much money will I have to have in order to start my legitimate online home based business? And how much money can I make? Well, in-order to start a legitimate online home based business you will definitely have to spend some money. When I started my legitimate online home based business I spent about $100, I thought that was great; the problem was I did not make that money back. After making the necessary changes to my website I ended up spending another $500. Now here is where one of those fears comes in to play. Some people would spend that first $100 or more and give up because they lost it, and did not make anything in return. The fear creeps in and says to you “Do you want to put more money into this not knowing if you are going to be successful or not?” The answer is yes; no one who has started a legitimate online home based business has breezed through the start up phase; there is a trial and error period for everyone. If you can see where you went wrong and then change it, you are on your way to being successful. Legitimate online home based businesses are marathons, not sprints. I make changes to my website and thought process daily, get used to it. The ones who are successful in this legitimate online home based business can take the negatives and turn them into positives. In regards to how much money you can make it is up to you; you get what you put into it. I am sure we have all seen the “get rich quick schemes” that tell you can make $10,000 a week; guess what? They are not really telling you the whole truth. You actually can make that kind of money; I know people who are; what they do not tell you is how to do it before you sign-up. If you want to make that kind of money you better be prepared to work hard and be very resilient. I make great money doing this, but it did not happen overnight. You should expect to put at least 8 to 10 hours a week into your legitimate online home based business when you get started. The further you get into the process, the more time you will find yourself spending on your legitimate online home based business. From what I have seen, the people who are successful started out working some hard hours; worked even harder longer hours as time went by, and then worked less hours because they got their legitimate online home based business  to the point where their website does most of the work for them.

Another fear that creeps into our minds is; will I be successful at this? The answer to this question is up to you. If you want to be successful and are willing to do the groundwork, you will be. Here are some tips on how to be successful; first of all, it is all in your head. When I was younger my parents told me something I will never forget; they said, “Alexander, what you get done today may not payoff for you immediately; you might not see the desired results until years from now? When I heard that I got a little depressed; I was a kid and wanted things fast. As I have gotten older I realized how true that is; it is all about patience. When you start a home based business, try to set some big goals and even more little goals. The little goals are the ones that will payoff faster; the bigger goals will eventually come and give you the most satisfaction. Write down the little and big goals; fold the paper up with the big goals and do not look at it over and over again, you will get depressed. Keep the smaller goals in front of you and keep looking at them; that’s the road map to the big goals. Another thing to remember when asking yourself if you will be successful or not is: this legitimate online home based business is a very competitive. We all have had jobs and had competition; well imagine having thousands of competitors. In this business you are up against some of the brightest advertisers in the world. Don’t get discouraged though; there is enough to spread around for everyone to get a piece of the pie. Try not to worry about what others are doing; focus on your little goals and challenge yourself; if you do that, you will be successful. If you got the guts and work hard you will make your dreams come true. You do not have to be very smart to pull this off; you need to ask questions and try new things. You are only going to learn from the mistakes you make, and plan to make a lot of them. I make mistakes all the time, but I never make the same on twice, and that is the key. This legitimate online home based business changes all the time; you have to role with the punches in order to make your legitimate online home based business work.

In regards to getting help in this legitimate online home based business; remember you will never be alone. The Internet is loaded with resources and people who can help you be successful. There is not one question that you have about your legitimate online home based business that can not be answered almost immediately. Unfortunately not everyone will help you, but there are a lot of folks who can guide you through the process. I would not have gotten to where I am today if was not for numerous people. I belong to a legitimate online home based business forum where I can chat with people who are doing the same thing as me. Join one of these forums and latch onto someone who has knowledge and makes you feel comfortable. If you think you can start a legitimate online home based business by yourself, you are not going to make it. I am not smart, but my web friends are!! The skills I lack I lean on them for; the skills I have are used by them. We need to work together in order to find new ways to advertise and keep up with the ever changing legitimate online home based business world; if you try it by yourself you will be out of this legitimate online home based business in no-time. Another thing to remember is: be true to yourself and do not be one of those scam artists. If you play by the rules you will have a better chance of long-term success. If you lie to people you might make it for a little while; eventually your actions will catch-up with you. I am 27 years old and I do not know everything; I do know one thing though; what goes around comes around, that is probably the greatest statement I have ever heard, because it is true.

I want everyone to be successful in this legitimate online home based business. It is important to believe in yourself; YOU CAN DO IT! Just work hard and do not give up; do as much research as possible. The research will be the backbone of your legitimate online home based business . You need knowledge to succeed, and all the knowledge you will need is out there for you to grasp, and most of it is free.



Real Estate Professionals

Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

 

What is a Reverse Mortgage?

 

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

 

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

 

Who qualifies for a Reverse Mortgage?

 

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

 

How can a borrower use the money?

 

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

 



Paying off debts, primarily mortgage and credit cards

Home repairs and remodeling

Living expenses

Travel

Health care or long-term care

Easing the financial burden on children

Education

Hobbies

Escalating property taxes



 

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

 

What are the costs?

 

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

 

What consumer protections are in place?

 

Reverse Mortgages are non-recourse consumer loans – the loan payoff can never exceed the value of the home. To get a Reverse Mortgage, the customer must attend a mandatory counseling session and review their financial situation with a trained, professional Reverse Mortgage counselor. Many of the counselors are certified by the AARP. The counselor ensures that they understand the transaction, the costs and their other alternatives.

 

If you have questions regarding Reverse Mortgages or how they may provide life-changing benefits to your clients, contact MLS Reverse Mortgage at 1-888-888-4834 or www.mlsreversemortgage.com.

 

Fixed Rate Reverse Mortgage

 

MLS Reverse Mortgage

 



Real Estate Professionals

Focus on the design psychology. And that’s the first rule!

Have you ever entered a house wherein you can’t fight the urge but love it? Have you ever been into a house where everything seems too inviting and that components completely complement each other? And lastly, have you ever been into a house that offer so much that you wish you own it?

Well if you already have then you might have encountered already a house that appeal to your psyche.

Design psychology is fastly becoming a demand in building houses. This is especially true with properties whose owners have already intended to sell after years of ownership. You may not know this but it is true that some houses were designed specifically to be inviting and homey to your mind.

Design psychology has the main concept of creating your house in such a way that it is more than ready for the market. It uses both interior and exterior design strategies that are innovative. Obviously, these techniques go beyond the normal paradigm of cleaning and painting. More often than not, houses that have used the principles of design psychology are bought in the market in no time. Thus, it decreases the house’s market time while increasing its market value. Sometimes the value goes beyond the initial expectation the seller has in mind.

Here are some of the tips in design psychology that you could use in preparing your house for the market.

Be keen with the color

Color, whether you like the idea or not, has effects on the eyes of various people. Each color could initiate various interests or disgust depending on the onlookers.

Take notice of it yourself- look around at your neighborhood and see what colors and how many colors homeowners usually use in the exterior of their properties. If you have noticed it, those using only two complementary colors are less likely to catch your attention. However, those houses that were painted with three shades and sometimes even four are more pleasing to the eyes especially if the use of this number of colors is excellent that they do not only compliment one another but also help increase the beauty of your house’s exterior.

If your main goal is to sell your house fast, you must have to focus on the critical points that would make people look at your house while contemplating how beautiful it is.

However, the color psychology doesn’t end in the exterior. While this is valuable enough, you must still give consideration in your exterior. It would be a great turn off if the inside of your home does not look as good as your exterior. See to it that both are equally commendable.

It is easier to experiment in exterior colors since they would not have to stand alone. The furniture and other accessories you would be leaving in the house for over-all enhancement could all help to increase the design psychology effect in your buyer’s eyes.

The common problem with people though is the fear of choosing and using colors in their house. And so most resort to either using white and other common shades. You must break the ground here.

Buyers would have to feel at ease with your house and should find value in buying it. And colors just do this thing very well.



Quick House Sale

For most Canadians, buying a home is the largest financial decision they will make in their lifetime. Yet, consumers across the country are more likely to painstakingly review dozens of investment possibilities for their portfolios than to scrutinize their mortgage choices. The mortgage world – like the investment world – can sometimes be confusing. There is a vast array of choices – open, closed, fixed, floating, long or short amortization, prepayment options, portability… and of course, the rate itself.

Making the right mortgage decision can have a huge financial impact over the long term. Many Canadians have an investment advisor to help them sort through their choices. Now, Canadians are also beginning to turn to mortgage brokers to help them make better mortgage decisions. Canadians are just now catching up with their counterparts south of the border, where mortgage brokers already arrange approximately 70 per cent of mortgages for U.S. properties.

So what is a mortgage broker? The role of a mortgage broker is to understand your mortgage needs, seek out the best options for your situation, and guide you through the lending process. A mortgage broker does not work for any individual institution or lender, but is independent, and has up-to-the-minute loan rates for a wide array of banks and other lending institutions.

There was a time when the banks exercised the view that they “owned” their customers, and mortgage brokers were perceived only as a last resort for home buyers with poor credit history. But times have changed, and home buyers in every bracket are learning they can benefit from the professional advice of a mortgage broker.

A good investment advisor can make you thousands of dollars. But a good mortgage broker will SAVE you thousands of dollars. Whether you are buying a home or renewing a mortgage, consider making a mortgage broker part of your financial plan this year.



Quick House Sale

If you are a house owner and if you are in a financially dire situation, one quick way to get access to cash is to sell house fast. This move gives you that much-needed cash to fulfil your urgent monetary requirements. However, in the circumstances when the market is more in favour of the buyers, it may not always be easy to make a quick sale of your property.

Yet, there are certain ways which can help you out to make a quick sale of your property. As a rule, the sooner you wish to sell off your property, the lesser time you get to negotiate and thus to push for your asking price. The scope for profit may be reduced. This should not come as a disappointment. One of the most advisable things to do is to avail the services of a real estate agent. There are a few reliable property agents who have helped people out in difficult situations, as and when they needed to sell house fast to get quick cash in hand.

They can prove to be really helpful to look after the dealing part as well, as to see to it that you do not face a loss while making a quick house sale. Once you hire their services, fetching the highest price possible for your property becomes their responsibility, and they can help you here with the correct property evaluation. And you would be able to get sufficient guidance on the legal formalities of sell your house in exigent situations. Also, your property stands a chance to get better exposure of prospective buyers through the medium of the agent. This, in fact, can be a crucial time-saver.

You can save further decisive time by searching online for real estate agents who have effective experience in this field. Their expertise in this field should work out fine for you as well.



Passive Income

Make your promotional materials interesting and fun will help your home based internet business. Try to use a little creativity but not too over artsy. Build around what your product or service is about. For example; if you are selling car parts, put some pictures of what is new in the auto parts world, a new wing door possibly that can fit any car and make it look like a Lamborghini.

Try to research what people are looking for, these way, you stay one step ahead of them all the time and you will be their bearer of new tidings. They will be eager to receive what you are sending them because they new you always have fresh and new things to share with them.

Write good articles that can be very informational but light at the same time. If your subscribers enjoy your articles, they will go to your site by clicking the links that you will be putting on your newsletter to read some more. You can provide articles that can connect to many people. Be diverse in your articles. Put something humorous, then put something informational, then put

something that has both.

Are you wary about this because you don’t like writing? No problem, there are many professional and experienced article writers that can do the job for you for minimal fees. They know what they are doing and can provide the need that you have for your newsletters, the money that you pay for your articles are going to be met by the many sign-ups and the potential profit from the sales that you will get.

Create and send an E-book to your customers about anything that is related to your business or site. Use your knowledge and expertise in the field you have chosen to help other people who are similarly interested. Offer this e-book for free. You can write about anything informational and helpful to your subscribers. For example; you can do manuals and guides in so many things. This e-book could be used as a reference for many people. A good example of this is the New ebook just launched called the Wealth Magnet System Success Guide. The link to the guide is in the resource box below.

Share this e-book with everyone, even other sites; just make sure that they don’t change the links in the e-book that will lead people to your site. If you want, you can always get some people to write it for you just like your articles. Your investment once again will be covered by the great marketing this will generate.

Add e-coupons in your newsletters that will help them avail to special discounts. Put a control number in your e-coupon so that they can only be used once. When people get discounts that can be found in your newsletters, they will be eager to receive your newsletter in anticipation of what you are promoting next.

If your subscribers can get benefits from your newsletters, they will be very eager to receive them. Just don’t flood your mailing list with mails so that you don’t annoy your subscribers.



Rent Back Fast

Arizona homes have always been a hot commodity. Many people love the dry desert climate of the Southwest, and others come just for the communities and the sense of neighborliness between different areas of the community. It doesn’t matter if you’re looking specifically for Phoenix homes for sale, or just for homes for sale Arizona. There are many different options to choose from for your Arizona homes needs, so you need to be sure to know what you want before you get into anything. If you don’t, you might run the risk of buying a home that doesn’t meet your needs or a home that isn’t what you wanted. Arizona homes are plentiful, and have a great variety of options to choose from. By knowing what you want, you’ll be better able to narrow down your search and get what you want in Arizona homes, including Phoenix homes for sale and homes for sale Arizona-wide.

You should check out different real estate agents and find one that can help you with your Arizona homes search. This will allow you to be better prepared and informed for the process of buying Arizona homes, and might give you better information on the areas, including Phoenix homes for sale and other homes for sale Arizona. When you’re not from the area, it can be especially difficult to know what you’re getting into and learning the different neighborhoods. That’s where hiring a real estate agent for Arizona homes comes in handy. There is so much that they can help you with, including finding foreclosures and homes that you might not have otherwise realized were available.

Many people will tell you that you shouldn’t buy Arizona homes right now. There are many valid reasons for this type of thinking, but you can actually get better deals on Arizona homes right now than ever before. You also need to realize that there will be a difference depending on whether you’re looking for Phoenix homes for sale or homes for sale Arizona. By focusing your search on just one city, you’ll be better poised to find the home that you want, rather than looking for homes all over Arizona and spending weeks and weeks searching for no reason. Arizona homes come in all shapes and sizes, and more people are selling than buying, which will give you the upper hand in getting the exact home that you want when it comes to buying Arizona homes.

Ultimately, buying Arizona homes comes down to being prepared and informed for the home buying process. Without the knowledge, you will spend much more time searching and trying to figure out the Arizona homes buying process than if you had taken the time to educate yourself before you began looking for Phoenix homes for sale or homes for sale Arizona. Arizona homes aren’t hard to find, and usually have something to offer every budget that’s out there. By taking the home buying process seriously and taking your time, you’ll have a much better chance at buying Arizona homes than you might have otherwise.



Rent Back Fast

Next to critiquing the decorating taste of your home’s previous owner, playing the “adjustable mortgage game” may rank as one of the most popular (and least pleasant) pastimes of Canadian homebuyers.

Here’s how it works.

As you’re exploring your mortgage options, you review the long and steady slide of mortgage rates in Canada over the last decade and make the decision to go with an adjustable mortgage when you buy, at renewal or when refinancing. You’re now a player. Then you watch for clues about mortgage rate movement, trying to guess the perfect moment to lock in your mortgage. The objective of the game is to try to guess the bottom… and you won’t know it’s the bottom until it’s too late. In today’s low rate environment, we should acknowledge that most of the players are already winners; but it can still be a stress-inducing game.

One way to remove all of the guesswork is to consider a capped-rate adjustable mortgage, although there are only a few options available in the marketplace.

There is a unique adjustable mortgage that is not based on the Canadian Prime Rate (the usual benchmark) – but on what is known as the Banker’s Acceptance rate: a benchmark that is used for professional money managers. In effect, the BA rate, as its known, is the rate lenders charge one another.

Not surprisingly, it’s typically much lower than prime. In fact, the effective rate of this adjustable mortgage has been consistently lower than competitive variable or adjustable rate products based on Prime. A capped version is now available.

An adjustable rate mortgage with a cap offers unlimited downside rate movement, but also provides a guarantee that the rate will never rise more than a certain percentage higher than the starting base rate – no matter what happens to the lending rates.

The rate cap takes the guesswork out of the adjustable mortgage game. If rates continue to drop, your Mortgage rate also drops accordingly. But if rates begin to rise, you know that your own mortgage rate has a fixed ceiling. Imagine, no more worrying about when to lock in your mortgage, and no more second-guessing your decisions when rates go back down again. Of course, this kind of flexibility comes at a small premium over a regular adjustable-rate mortgage.

In the past several years, more and more Canadians have passed on the security of traditional fixed-rate mortgages for the savings potential of an adjustable rate. And in an environment of dropping rates, the adjustable rate choice has proven its value to homebuyers. With today’s rates among the lowest in memory, many homeowners continue to worry about whether or not they should lock in or not. After all, we don’t want to lose the flexibility of having our rate adjustable downward… but we’d also like to have it fixed upward.

If we had a crystal ball, we could make perfect decisions about our mortgage options, and we’d know how to secure the best rate. But a mortgage that passes on declining rates and has a rate cap on the upside can be the next best thing to seeing into the future. And the result is an adjustable mortgage game that the homebuyer is heavily favoured to win.



Rent Back