Thanks to mortgages, today a number of people in Concord have realized their dreams of owning a house. However, what needs to be understood here is the fact that it is only when one opts for the correct mortgage plan that he can expect to fulfill his dream.

Type of mortgage therefore becomes an important aspect while deciding on the mortgages in Concord. Talking about mortgages one thing that differentiates one mortgage plan from others is the mortgage rate. One and probably the only way of determining which mortgage plan suits your requirement the most is nothing but a thorough research. This must cover all types of mortgage plans on offer. A close study of all the plans would surely help you find one plan that would suit your requirement the most.

One thing that however must be kept in mind by all those aspiring to avail any mortgage plan in Concord is that they should not give much importance to the mortgage rate projected by the companies. It has been observed that many companies offer attractive rates only to hook customers.

Discussed below are different mortgage products available in Concord.

Conventional Mortgage

People who want to avail this form of mortgage would do well to understand that they would have to make down payment worth 20% of the purchase price (or appraised value in instances it is lower than purchase price).

Open Mortgage

Open mortgage plan allows the applicant to pay off a part or the entire mortgage at any point of time without any penalty or prior notice. It is a short term plan normally for six months to one year.

Variable Rate Mortgage

Under this plan, the mortgage rate changes with movement in credit market indices and the base rate as determined by the Central bank. When compared to fixed rate mortgages, here the borrower can potentially benefit from reduced margins to the underlying cost of borrowing.

Capped Rate Mortgage

Though the mortgage rate fluctuates with prime in this mortgage plan, yet the lending institution does not charge more interest. In many instances under capped rate mortgage plan there is a provision of penalty for early ‘full payments’.

Closed Mortgage

This mortgage plan makes it mandatory that the borrower makes the payments within the stipulated contracted time. The borrower is debarred from paying anything additional. He can also not pay the entire amount together. Such a step however, is allowed in instances when the borrower decides to sell off his property.

Convertible Mortgage

It is a fixed mortgage plan for a term of six months or one year. Under this plan, the borrower is allowed to lock into a longer term during the existing term of his plan without being charged with any penalty. Such an arrangement however can be made with the same lender. People who want to avail this form of mortgage would do well to understand that they would have to make down payment worth 20% of the purchase price (or appraised value in instances it is lower than purchase price).

Check out www.amortgages.ca for information on different refinancing options.

Author Bio: Please visit the website Amortgages.ca if you are interested to learn more about the mortgages Concord. The site also provides valuable information about mortgage for self employed and mortgages Richmond Hill.

Category: Finances
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