Everyone wants to find best mortgage rate for their home or property. The best mortgages best deal is sometimes difficult to determine, most people base their decision on “what is a good mortgage” to be the one with the lowest interest rate. While in many cases the lowest interest rate is the best mortgages deals, you should also look at other factors that can cost a significant amount of money. The hidden costs can turn what seems like the best deal into the worst deal.
Every mortgage comes with terms and conditions that must be kept to keep the mortgage in good standing such as, penalties, cancelation fees, renewal fees, lender fees and legal fees. All the various fees can add up to an amount greater than the annual interest especially on higher risk mortgages.
Some Common Mortgage Fees
A cancelation fee is very common in most mortgages deals; the fee is usually around 3 months worth of interest. Ask your mortgage agent if the lender is willing to reduce or waive this fee altogether, this can make the loan one of mortgages best deals. Please note many lenders are reluctant to do this due to the cost of setting up the original mortgage.
In higher risk mortgages it is very common for the lender to ask for a fee to place the mortgage. The fee may be reasonable due to the higher exposure to risk, although this fee should never exceed 10% of the loan amount, this fee is usually negotiable.
The best mortgages deals have little or no renewal fees, in many cases the mortgage title may need to be searched again. The renewal fees are designed to cover these costs and usually the lender wants to pass these costs onto the borrower. Watch out for excessive renewal fees since this could greatly increase the cost of borrowing.
Mortgages best deals do not have many penalty fees; a common penalty happens when a monthly payment is returned to the lender for insufficient funds. This cost everyone money since the banks charge a fee for all NSF cheques. Try to get a mortgage with the lowest fees just in case you accidentally incur one of them.
The best mortgages deals have good competent lawyers to complete all the required paperwork. Although legal fee can vary from lawyer to lawyer, you should choose the lawyer that you feel the most comfortable with.
Mortgages best deals are not always easy to get, that is why you should consult with a mortgage broker to get you the best deal possible. Call our mortgage agents they have access to many different lenders and can get you the lowest quotes on first and second mortgage rates.