Tag Archives: Rate

Understanding the Annual Percentage Rate (apr) and What it Really Means in Real Estate

The annual percentage rate (APR) gives you the yearly cost of a mortgage in the form of a percentage. The rate calculations include interest, mortgage insurance, and the origination fee (points). The APR has two main purposes. 1. it allows borrowers to compare loan programs from different lenders so they can see which … Continue reading

How to Calculate Cap Rate

Learn the definition, formula, and how to use cap rate in an actual real estate investing situation. Video Rating: 5 / 5

Have An Adjustable Rate Mortgage?…Fix it!

Adjustable rate mortgages will be responsible for a new wave of foreclosures over the next 2-3 years. As a majority of the loans that were given to home owners were risky, toxic loans that came with low teaser rates, which are now expiring and as a result home owners, will see their payments sky rocket. … Continue reading

Use A Mortgage Calculator To See If A Fixed Rate Is Always Better Than An ARM Rate

There’s a lot to take into consideration when looking at current interest rates because it’s possibly a decision that you’re making for the next 30 years. The two basic mortgage loans are a fixed rate mortgage and a ARM rate, or adjustable rate mortgage. One isn’t better than the other, but they are better for … Continue reading

What You Should Know About Adjustable Rate Mortgages

Adjustable-rate mortgages, or ARMs, differ from fixed-rate mortgages in that the interest rate and monthly payment move up and down as market interest rates fluctuate.  Most have an initial fixed-rate period during which the borrower’s rate doesn’t change, followed by a much longer period during which the rate changes at preset intervals.  Adjustable rates start … Continue reading

Information About Adjustable Rate Mortgages

I heard the news about another interest rate hike and thought it was about time to look into refinancing my mortgage. I contacted my mortgage company first. “I am interested in a fixed mortgage rate.” I said. “May I ask why that is?” The broker asked politely. “I don’t want to deal with the risk … Continue reading

Is An Adjustable Rate Mortgage A Good Idea?

If you are currently trying to buy a new home you’ve probably noticed the endless stream of numbers being tossed to and fro. Things like monthly payment, down payment, home price, affordability and a host of other fees and figures. This can be daunting but in a strange way all these requirements, in the form … Continue reading

Mortgage Loan ? Adjustable Or Fixed Rate Mortgage Loans

The big difference between an adjustable and fixed rate mortgage loan is, that the market interest rates move the price of the adjustable rate mortgage loan, but the fixed rate loan has the same monthly payment through the whole running time. 1. The Fully Amortizing ARM. This is the most popular adjustable mortgage loan. The … Continue reading

Which is a Better Mortgage Rate: Fixed or Adjustable?

In the realm of mortgage – Toronto or elsewhere, there’s what is referred to as the fixed-rate mortgage and the adjustable rate mortgage (ARM). Therefore, when you will be applying for a mortgage to make that dream house a reality for you and your family, you need to shop for the best mortgage rate – … Continue reading

Adjustable Rate Mortgages: How They Work

You’ve found the home of your dreams, you’re pre-qualified for a loan, and everything looks absolutely rosy. At first. As you begin to traverse the actual home appraisal, the loan amortization, your down payment, and all the dots that must be connected in order to make the dream a reality, you suddenly realize that you … Continue reading