With a discount mortgage, the interest rate you pay is a discount on your lender’s standard variable rate (SVR) for either a set period (e.g. two or five years) or for your whole mortgage. The SVR is an interest rate set by your lender, which it can raise or lower by any amount and at any time.
· The reason a discount is offered for mortgage-free status( and to answer another’s question below- yes YOU must provide the actual discharge paper that ALL banks in Canada are required to give you after a mortgage payout- this is your proof should anything ever arise, that you have paid the debt to the bank in full)
A 30-year, $200,000 mortgage might have an interest rate of 4.5 percent but come with a charge of 1 mortgage point, or $2,000. A lender can charge zero points, 1 point or several points. Points don’t always have to be round numbers. A lender might charge 1.5 points, which would come to $3,000 on a $200,000 mortgage.
APR calculation for a fixed rate purchase assumes a 720 credit score, a single-family, owner-occupied primary residence located in Georgia; a 3% down payment, $1,295 origination fee, 0.750 discount point, a loan amount of $225,000, a 45-day lock period, prepaid finance charges, and lender-paid mortgage insurance.
Not understanding the language and concepts can cost you deals, however.. The company funds a mortgage loan, an investor buys the loan after closing,
· Buying a new home is an exciting time, but excitement can easily turn to stress if there isn’t enough money to pay the monthly mortgage bill. The added expense can take some time to get used to, but there are ways to make the payments easier, especially in those first few months when money is the tightest.
Discount Mortgage Brokers – We are offering mortgage refinancing service for your home. With our help, you can change term and lower monthly payments.. It also helps to get a free, no obligation on your home mortgage refinance lender.
A point is a lender fee that can be worth paying, depending on your. Discount points are actually prepaid interest on the mortgage loan.