Real Estate Quotes

Each month, the reverse mortgage lender sends you a check that you can spend on food, clothing, travel, or whatever you want. The money you receive each month is really a loan from the bank against the value of your home, which makes the monthly check free from taxation. The main drawback of a reverse mortgage is that it can diminish the estate that you may want to pass on to your heirs or use for some other purpose. Also, some loans require repayment within a certain number of years. The fees and the effective interest rate you're charged to borrow the money can be quite high. You have other alternatives to tapping the equity in your home. Simply selling your home and buying a less expensive property (or renting) is one option. [2019] - Eric Tyson

Rental real estate is a great inflation fighter. If a retiree collects enough rental revenue to cover life's expenses today, it won't be undermined by the rising cost of living. Over time, rental income and inflation ride the same chair lift. [2018] - Andrew Hallam

Fixed interest rates are based on the bond market, and variable interest rates are based on the Bank of Canada. The fixed-rate mortgage interest rate is compounded every six months in Canada, but not in the United States. In the US, the major factor influencing rates is the movement of the ten-year Treasury bond. [2018] - Angela Calla

lenders who allow you to hold interest rates don't generally have the best terms, and the ones with best terms won't want to hold their money for something that may or may not happen. They're only willing to do it for people who are ready to go. [2018] - Angela Calla

Every time you do a credit check, it takes 5 points off your score. Carrying outside debt higher than 20% below the balance hurts your credit score. Carrying less than 2 or 3 active credit scenarios hurts your credit score. [2018] - Angela Calla

If you want the best money-saving mortgage, it often comes from a monoline lender. They offer the best exit and renewal terms. They get their business from one place only: mortgage brokers. Monoline lenders typically want prime properties or plum clients with a 700-plus credit score. If you can qualify for a monoline mortgage based on market fitness, your credit, income, and investment strategy, then you'll be better off. [2018] - Angela Calla

We always recommend you take the longest amortization possible, because the amortization doesn't actually dictate the duration of your mortgage payments; that duration is determined by how you set up your payments. If you have a long amortization, you can always revert back to the minimum payment. This helps you avoid accumulating outside debt, and you can qualify for something else if you need to. If you want to buy a rental, but you've just renewed your principal residence mortgage at 15 years, you won't qualify. But if you had your principal on a 30-year term, it would allow much more flexibility. [2018] - Angela Calla

If you are purchasing with 25% down payment vs. 20%, you may get a lower rate. 30% might get you a bit lower yet. The lowest insurable rates are usually available with 35% or greater down payment, however with some lenders you may need as much as 40%. Additional down payment beyond 35-40% will not get you a further discount on rate. [2018] - Paul Meredith

The cost of an uninsurable mortgage can be as much as 25 basis point (0.25%) higher than that of an insurable mortgage, or even higher. I've seen the difference as high as 50 basis points. [2018] - Paul Meredith

A 10 year fixed mortgage typically carries a rate of around 1% higher than the 5 year fixed. I do think that 10 year fixed terms are not the right choice for most people. It's because nobody expects to break their mortgage mid-term, but it happens all the time, and sometimes we are forced to. [2018] - Paul Meredith

Average household size is used to help determine the proper unit mix. If you lean that the average size is 3.7 persons per household, then pursuing a building with a mix of studio and one-bedroom apartments won't work. [2017] - Bryan M. Chavis

Mortgage interest rates help to evaluate and determine market cycles. If rates are at an all-time low, more people will be qualifying for mortgages and are therefore less likely to be in the rental market. When the money supply is tight and lenders are cautious and interest rates are high, that's when you're in the best position as a rental property owner. And when rates are low but lending standards are tight for the middle-income demographic, this demographic will typically be forced to rent. [2017] - Bryan M. Chavis

You have to think like your prospective tenants, and their needs may be different from your needs. Some of their needs may be: Close to highways and public transportation (bus lines, subways, etc.); Close to retail and shopping; Close to large employment centers. [2017] - Bryan M. Chavis

Rent must cover at least these items: mortgage payments, taxes, insurance, interest payments, estimated vacancy loss (at least 5 percent if you have more than one rental property), utilities provided by landlord, collection expenses, legal & accounting fees and advertising [2017] - Bryan M. Chavis

A landlord/property manager must not collect a deposit from more than one applicant at a time for the same rental unit. It is good practice to collect other applications for the same unit in case the first applicant does not qualify, but do not collect more than one deposit. [2017] - Bryan M. Chavis

I recommend raising rents at the end of each lease term. Even if only a few dollars, it gets your tenant accustomed to the rents being raised. You should bring the rents up to market rate at this time. To find out what market rents are in your area, do a market survey. Many find it helpful to use a tool such as Google or Rentometer. [2017] - Bryan M. Chavis

General rules of thumb regarding move-out procedure: Ordinarily you can charge for replacing ruined/stained/torn carpet, replacing chipped tile, replacing broken blinds/drapes, fixing damaged furniture, pest control for flea infestation, patching holes in walls, replacing broken doorknobs, replacing torn/missing window glass and cleaning for an excessively dirty kitchen/bathroom. You typically should not charge for replacement of an item that could be repaired. If a resident has lived in a residence for more than one year, the need for new paint is normal wear and tear and should not be charged for. [2017] - Bryan M. Chavis

Major city newspapers tend to publish a comparison of the prevailing mortgage rates by institution in the real estate section of the weekend newspaper. This will save you a lot of research time. Also check with mortgage brokers in your community. They frequently publish a list of current comparative rates and will send a copy to you free upon request. [2017] - Calum Ross

If you are buying a condominium as your principal residence, you generally don't pay any fees, other than the appraisal fee to the mortgage broker. [2017] - Calum Ross

There are many factors you have to decide on before finalizing your mortgage decision. The key factors are amortization, term of the mortgage, open or closed mortgage, interest rate, payment schedules, prepayment privilege, and assumability. [2017] - Calum Ross