Understanding Mortgage Terms and Features
Mortgages come with a variety of different features
and characteristics, giving you the flexibility to
customize your mortgage to suit your needs.
An RBC Mortgage Specialist will help you determine
the type of mortgage that works best for you. Here are
some of the options you will need to consider.
Amortization is the amount of time
needed to reduce the loan to $0. A conventional mortgage
is 25 years, but amortization can range anywhere from
five to 35 years. The shorter the amortization, the
higher your regular payments will be, but the less you’ll
pay in interest over the life of the loan. Generally,
amortization is several mortgage term periods.
The mortgage term is the period of time that the mortgage agreement is in effect. These typically run from six months to 10 years. At the end of the term, you will either repay the full mortgage amount, or the mortgage is renegotiated at then-current market rates and conditions.
Another decision when deciding on a mortgage term is whether to have a fixed rate or a variable rate. With a variable-rate mortgage, the interest rate changes as the prime lending rate changes and generally have the lowest rates. With a fixed-rate mortgage, the interest rate is set for the length of the mortgage term. Fixed rates, while slightly higher, offers you the security of knowing how much you’ll pay in principal and interest on each regular mortgage payment.
We have many mortgage options designed to help save interest costs and meet your personal financial requirements. Talk to one of our Mobile Mortgage Specialists today to select the mortgage that is right for your situation.
You will need to decide whether you want an open, closed or convertible mortgage. Your circumstances and financial goals will help determine which option is best for you.
You will also choose the payment frequency. You can choose to make your mortgage payments monthly, semi-monthly (twice a month), bi-weekly (every two weeks) or weekly. The bi-weekly and weekly payments can be accelerated allowing you to reduce your mortgage principal more quickly.
A down payment - The amount of your own money that you use to buy your home – often expressed as a percentage of the purchase price. Learn more about your down payment options and how you can save for a downpayment.
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How to Get Started
An RBC Royal Bank Mortgage Specialist can answer any of your mortgage questions. Our team of Mobile Mortgage Specialists can meet with you wherever it’s most convenient for you.
If you are looking for a Mortgage Specialist that speaks your language, you can find one through our Mortgage Specialist Locator. |
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The content of this website is provided
for the general guidance and benefit of our clients.
This website is for informational purposes only and is
not intended to provide specific advice. See
full disclaimer.
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