Building a mortgage structure will provide for our own unique financial goals. There are many ways that we can build our mortgage framework to provide flexibility, but also protect us from the volatility of interest rate changes.
At Thompson McNeill it is important that we guide you through this process to ensure that we can tailor your mortgage to suit your particular goals and for many people that will mean getting the mortgage paid off just as soon as possible!
Here are some of the different mortgage types that we can use:
Fixed Rate Mortgage
This is the type of mortgage for people who like certainty. Fix or lock your interest rate for a specific term. Generally, the longer the term the better the rate, but they are restrictive for lump sum payoffs.
This is a flexible form of mortgage, allowing you to pay it off more quickly than scheduled without penalties. If you are earning well, you can save more money than you lose to higher interest rates.
Fixed / Floating combo
If you have a large mortgage, you can split it into two parts - the floating accelerated portion, and set the remainder at a lower rate. Each time the fixed mortgage renews, you reset your goal totals.
Line of Credit / Revolving Mortgages
If you are very disciplined, lines of credit can see you paying off your mortgage very quickly, and give you ongoing credit after your house has been paid off. These mortgages combine daily banking with a loan.