Options for home mortgage rates

The credit crisis in America is causing home mortgage rates to fluctuate. While you can still find reasonable rates for a home mortgage in Windsor you will have to work harder than you did a few months ago. It is crucial to find the right mortgage rate and type for you. 

You can find information online or speak with a local lender to help you decide on the best loan rates in Windsor, Ontario. But you should research your options before making a decision.

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Fixed mortgage

The fixed mortgage is the most common of all home mortgage rates and packages. A mortgage that has an 8 percent rate and a 30-year term with 20% down is likely to be an older mortgage. Fixed mortgages are still often 30-year mortgages. 

However, they can also have 12-year terms, 15-year terms, 20-year terms, or other negotiated terms. While the rate of interest may vary depending on the term and creditworthiness, it is the same throughout the loan term.

Variable mortgage

As more Americans wanted to live the American dream and own their homes, more borrowers have taken out variable mortgages. Variable mortgages in Windsor have a fixed term that usually includes a low introductory rate followed by a phase where the mortgage is adjusted according to a preset index. One example is the tying of the mortgage rate to the prime rate. A balloon payment may be made after the initial period.

Balloon

A balloon payment can be used to finance the mortgage and keep the home mortgage rate low. With the expectation that income will increase before the balloon payment is due, the borrower agrees to a low or zero mortgage rate for a short period. 

Reverse Mortgage

Reverse mortgages are a special type of home mortgage rate in Windsor. Senior citizens who own their homes often take out this type of mortgage. This can be used to help pay for health care. It taps equity in the home and pays the owner for the entire life of the mortgagee.