Tag Archives: HELOC

HELOC Changes Imminent

One of the proposed mortgage rule changes coming down the pipe is lower limits on Home Equity Lines of Credit (HELOC’s).  Earlier this year the Department of Finance not only lowered maximum amortizations and restricted the limits on mortgage refinances, they also initiated several mortgage rule changes for federally regulated financial institutions.  Although many of the proposals were discarded, a couple of significant changes are nearing implementation, one of which … Read More

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Interest Only Mortgages

An interest only mortgage is simply a mortgage that only requires periodic interest payments.  While borrowers will enjoy better cash flows, the obvious downside is that they may never pay down their mortgage. A typical mortgage requires a constant payment of both interest and principal.  The longer the amortization (the time it takes to pay-off the mortgage) the lower the payment and the less principal paid each month.  Recent department … Read More

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Home Equity Line of Credit vs. Variable Rate Mortgage

Many homeowners prefer the flexibility of a Home Equity Line of Credit (HELOC) over a closed term mortgage.  While there are merits to a HELOC it isn’t always the best option.  HELOC’s tend to be more expensive than their closed variable rate mortgage (VRM) counterpart.  The great thing about mortgages is that it’s all about the math.  If you know your needs then you can calculate the numbers to determine … Read More

Posted in Blog, Mortgage Rates | Tagged , , | 2 Comments