Well let me tell you, a residential mortgage is a large loan designed to help one or more individuals buy a property to live in. The property must be used as a residence by those taking out the mortgage.

There are many things to consider when you are looking at a Residential Mortgage Loan.

As a Mortgage Consultant, I understand that buying a house may be one of the most important decisions in your life. I am here to listen to your needs and wants and try to choose the best mortgage product that suits your needs. Due to the unique needs of different clients, I do my best to find the right solutions and services for every individual.

When purchasing a home, it is important to consider a number of different things. Firstly, the cost of the house that you can easily payoff depends on your income. As well, it is vital to be able to accurately estimate in advance how much you will be able to contribute to your mortgage payment, along with other home related expenses over a short or long period of time.

Mortgage Terms To Know:

Principle: The principal is the amount of the loan that is actually borrowed.

Interest Rates: As with any loans (credit cards, lines of credit, etc) interest will be incurred. This is the amount that the lender charges for the privilege of funds borrowed. The amount of your interest payment will depend on the interest rates, which vary depending on the terms and conditions of the mortgage and the borrower’s credit history.

Mortgage Payments: These can occur monthly, semi-monthly (twice a month), bi-weekly (every other week), accelerated bi-weekly, or weekly and are made to the lender. These payments encompass both payments to the principal amount borrowed, as well as interest charges.

Amortization Period: This is the number of years it will take to repay the entire mortgage in full and is determined when you are approved. A longer amortization period will result in lower payments but more interest overall as it will take longer to pay off. The typical range is 15-30 years.

Term: Term is the length of time that a mortgage agreement exists between you and the lender. Rates and payments vary with the length of the term. The most common term is a 5-year, but they can be anywhere from 1 to 10 years. Generally, a longer term will come at a higher rate due to the added security. A “Fixed Mortgage” means you are locked in at the interest rate agreed for a longer length of time. A “Variable Mortgage” features an interest rate that is adjusted periodically to reflect market conditions.

Maturity Date: The maturity date marks the end of the term. At this time, you can repay the balance of the principle or renegotiate the mortgage at the current rates. Note: If you choose to repay or renegotiate the mortgage before the term is up, penalties may be charged.