with:
• Conventional - A conventional mortgage can lead to a low fixed rate or adjustable rate for your primary home, secondary home, or investment property. The borrower needs to have a minimum of 20% available for their down payment. • High Ratio – A high ratio mortgage is one where the borrower has less than 20% down payment. These mortgages must be insured with mortgage default insurance. This premium is added onto the total mortgage amount. This insurance protects the lender in the event the borrower defaults on their mortgage in future. • Open Mortgage – The Interest rate on an open mortgage is higher than on a closed mortgage with a comparable length of term. This allows more flexibility for those times when you find yourself with a little bit of extra money and want to help pay down your mortgage sooner. • Closed Mortgage – This mortgage usually limits the amount of extra money you can put towards your mortgage each year. Most lenders typically allow for 20% of the principle to be paid each year as a pre-payment privilege. • Portable Mortgage – Is when you sell your home and purchase another one, a portable mortgage allows you to transfer your existing balance on your mortgage, along with your current interest rate, terms, and all conditions. This can help you avoid penalties for breaking your contract early. Melissa at Mortgage Architects is familiar with these mortgage products and she can pre-qualify your buyers to ensure they can 111
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