After a period of some stressful time in their life, this including hard work, a change of workplace, some family illnesses and some accumulation in the credit card usage , a client called me asking for some financial advise. Their goal was to recuperate their financial stability, to stop accumulating debt with high interest rates that were consuming a great deal of their fixed income and mainly to get a piece of mind to continue.
We had a chat a coffee shop and before my medium size of black coffee was finished we were filling up their online mortgage application, I simply learned what they wanted and their particulars, the rest was just a matter of simple paper work that we both worked together on.
Can I help you refinancing?
After a few days they were able to reduce considerably their high cost of borrowing and by the first month they were able to feel the financial difference, that was in the very short time, on top of that a projection of their future debt accumulation showed them a great difference in the overall reduction of their debt. Freeing cash using the equity in their home without losing nor risking any future home resale value was the triggering tool that gave them a piece of mind.
After the second month they were able to travel to Hawaii to realize a long due trip they had promised to each other to enjoy.
Today their mortgage payments are low and their debt is on the decline
As a token of thank you they shared the following pictures taken from their hotel room balcony, a time they enjoyed and will remember in their lifetime.
Mortgageis a registered agreement in a land titles office where security interest in a specific real property is held by a lender as a security for debt repayment by the borrower, a debt pledge
Each mortgage is a claim against the property; should the property be sold or foreclosed each claim is satisfied in order
What kind of mortgage can I help you with?
First mortgage: is the first loan registered in the title against the property
Second Mortgage: Is the loan that is registered second in time in the title against the property, is normally used to trade high credit card debts that carry high-interest rates for a low mortgage rate that eventually will reduce the cost of borrowing making it easier to eliminate that debt
A Mortgage can be conventional or high ratio Conventional mortgage: Usually when a borrower contributes a 20+% of the value of the property High ratio mortgage: Usually when a borrower contributes less than a 20% of the value of the property
A Mortgage can be open or closed:
Open: Allows the borrower to repay all or part of the principal at any time without penalties
Closed: Does not allow any prepayments or early repayments of the mortgage
There are different types of mortgage loans because they try to satisfy different needs according to the borrower’s lifestyles and affordability.