Whether you are a current homeowner or you are getting ready to buy your very first home, you need to learn all that you can about mortgages and how they work. Many lenders will have multiple rates that are used depending on the type of mortgage, which is done to offer flexibility for any given financial situation. If you are interested in Regina mortgage rates, the team at Bittner Mortgages can help. After all, it is best to shop around for a mortgage whenever you can and learning all there is to know about points and interest rates will be a tremendous help.
Interest Rate Info
When learning about mortgages and shopping around for the best possible Regina mortgage rates, you should keep in mind that the interest is the amount that you pay for needing to use the lender’s money until you are able to pay it back. The amount that you end up paying will depend on things like:
- The amount of money that you put down. The bigger the down payment you have, the less risk to the lender and the lower your interest rate will be.
- The length of time you are borrowing the money. In general, the longer your mortgage, the more of an interest rate you will have.
- The likelihood you will pay it back. A lender will determine this by taking a look at your credit score and credit history. If you are a low-risk borrower, you will usually get a lower interest rate.
- The guarantee of the rate. The interest rate that comes on a fixed-rate mortgage will generally be higher than an adjustable-rate mortgage initial rate.
- Whether or not you are going to rent out the home or you will live there.
- If you are going to be refinancing or buying.
Points are basically a type of fee that has to be paid to the lender at the time of closing. You will find two different types:
- Origination Points. Sometimes called the origination fee, these points compensate lenders for the associated expenses while your application is being evaluated and processed.
- Discount Points. These points give borrowers flexibility for making the deal work according to their current financial situation. Such points can be used to get a lower interest rate and you can sometimes take a higher rate and the lender will end up paying you points.
Generally speaking, a point will be equal to 1% of the borrowed amount. For example, if you have a $200,000 loan, the points would be $2,000.
Finding the right mortgage and Regina mortgage rates should never be difficult. When you work with our team at Bittner Mortgages, we will be happy to help you find the right rate for your unique situation. Everyone deserves to enjoy the dream of home ownership and we like to make it as easy as possible for our customers to get the interest rates they are hoping for when shopping around for a mortgage.
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