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Mortgage Tips by Jerry Sims

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Blog by John Jennings | April 28th, 2011

Is the Best Mortgage Rate Always Important?

Mortgage clients constantly say to me "I want the best mortgage rate.  What rate do you offer?" 

While the client is always right and I always provide the best rate and terms according to the application, mortgage clients sometimes do need to consider the ‘extras’ when selecting the best mortgage for their unique situation.

Extras include:

- Different annual pre-payment allowances
- Varying monthly pre-payment privileges
- Cash back options
- Portability
- Assumability
- Missed payment flexibility
- Line of Credit and Multi-Product mortgage options
- Mortgage readvanceabililty
- Early payout ability and corresponding penalty calculations

Clients can be swayed by even a 0.05% savings in mortgage rates.  But when you do the math, the relative importance of the ‘extras’ becomes clear.  A 0.05% savings on a 5-year mortgage in the amount of $500,000 mortgage equates to:

- A difference in monthly payment of only $14
- A savings of just $1,208 over five years on your mortgage balance

Opting for the right mortgage with a lender who offers generous conditions on even just one of the above parameters could offset this 10 times over. 

Something to consider the next time you're mortgage shopping or I would be happy to match you up with the best rate and the most advantageous product for your needs.

Jerry Sims Mortgage Broker
Jerry Sims, AMP
Mortgage Broker
Ambro & Associates Mortgage Consultants Ltd.
c 604.808.3420
f  604.924.8178