Mortgage Mechanics 101

General 10 Mar

So it’s official…I am a visual learner and I have come to embrace my strong visual skills. I discovered this a couple of years ago when I tried to do a course by correspondence and realized that I was not “getting it”. Then I attended a classroom session of the same course and it was like a light bulb went off! “Oh, that is what they are talking about”, I heard myself saying out loud.

Yesterday, after many hours of preparation and editing, I created my first video stream for everyone who really has no idea how the mortgage process works. The video includes information on how to apply for a mortgage, all the way down to what you will need to provide, and why. I guess the reality nowadays is that many people do not have the time, nor the energy, to find accurate information regarding Canadian mortgages.

The video I have created really has the so called “brass tacks” of the whole process, and therefore is worth a watch.

Click here to watch the video: Mortgage Mechanics 101

Please feel free to contact me with questions or if you would like to get the process started for you. Now sit back and enjoy the show!

Liz

Financial Divas…are you a Diva?

General 10 Feb

About a year ago I was approached by a very forward thinking woman who realized the need for quality financial information, for the average woman, for free! She also saw the need for these everyday ladies to be offered the info in a relaxing atmosphere, with qualified licenced professionals, who would not be contacting them the next day or week to do business with them. Basically, a “no pressure” environment to ask questions, and get educated about such things as real estate, investing, life insurance, etc. Hence the Financial Divas group was born!

Over the last year the group has been working tirelessly to put together smaller community “Divas” to start our coffee meetings and develop a free magazine. The magazine is available online or picked up at various local locations.

I am a proud member of the Financial Divas group and specifically am the Mortgage Diva for the Coquitlam/Port Coquitlam/Port Moody area as well as the New Westminster area.

On Feb. 18, 2011, we will be celebrating our official launch of the “Financial Divas” group and I would like to congratulate all the professionals involved.  I would also like to invite women to find out about their community group, to go out and get educated and involved. As the Financial Divas website says “Financial Divas is a multifaceted program structured around the goal of empowering women with the knowledge we need to make informed financial decisions, achieve our goals, and find balance between our money and our values.”

Check out our website online for the latest magazine issue www.financialdivas.ca Email me if you are interested in finding out more about the Tri-Cities coffee groups. lizreid362@gmail.com

All the best to you and your inner Diva!

Liz

Examining No-Frills Mortgage Products

General 13 Dec

While No-Frills mortgage products typically offer a lower – or more discounted – interest rate when compared with many other available products, the lower rate is really their only perk. This type of product will only seem ideal for you if you have no plans to take advantage of benefits that will help you pay off your mortgage faster – such as pre-payment privileges including lump-sum payments.

Essentially, this product is only ideal for: first-time homebuyers who want fixed payments and have limited opportunities to make lump-sum payments during the first five years of their mortgage; and property investors who need a low fixed rate and are not concerned with making lump-sum payments.

No-Frills products also won’t let you take your mortgage with you if you purchase another property before your mortgage term is up – ie, portability is not an option with this product. Portability is an important option that could save you money over the long term if the home of your dreams is within your reach before your mortgage term is up and rates have risen, which they have a tendency to do over a five-year period.

It’s understanding why these products may seem appealing. After all, during tougher economic times who has the extra cash to put down a huge lump-sum payment? And who needs a portable mortgage if they’re not planning on moving until the market picks up? But it’s important to remember that a lot can change over the course of five years – or whatever term you choose for your mortgage.

The thing is, you can still obtain great mortgage savings without giving up the perks of traditional mortgages. For starters, many lenders are willing to offer significant discounts if you opt for a 30-day “quick” close.

There are, however, other ways in which to earn your own discounts. For instance, by switching to weekly or bi-weekly mortgage payments, and by obtaining a variable-rate mortgage but increasing your payments to match those of the going five-year fixed rate, you’ll be ahead of the typical 0.1% discount of a No-Frills product within approximately three years.

No-Frills products represent a great example of why interest rates are not the only important factor to consider when deciding whether to opt for a particular mortgage product. Much like buying a car, you get what you pay for. If you don’t want a car with air conditioning, a stereo, a cup holder, and so on, then you can get the cheapest car going… but you’ll likely regret it later.

This article is provided to you by: Liz Reid, Mortgage Professional, AMP

Rates – Nov. 7, 2010

General 7 Nov

Some lenders have dropped their fixed rates in the past week to come in alignment with what most other lenders are offering. Best unencumbered five year fixed rate sits at 3.59% while a variety of lower five year fixed rates are available with stipulations attached. It’s best to contact me directly to see what’s best for your situation. Prime currently sits at 3.0%, and unencumbered variable rate discounts are still available at Prime -.65%, although certain lenders are offering up to Prime -.80% with limited prepayment options or stiffer penalties attached.