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Jeanne Said:

If the Bank of Canada raises the prime lending rate to 8.8, does that effect mortgage rates? ?

We Answered:

Variable mortgage rates in Canada are usually set to adjust up and down with the bank's prime rate. As of today, Oct 16 2008, Scotiabank's Variable Rate Mortgage's interest rate is set to 5.25%. It's Prime Lending Rate is 4.25%, and the Bank of Canada's prime business rate is also 4.25%.

If the Bank of Canada rate were to rise to 8.8%, rates on your variable mortgage would certainly rise. Assuming your mortgage rate jumped from 5.25% to 9.8% (1% above prime), your monthly payment on $100,000 would jump from $596 to $881.

On the other hand if rates were to drop by 1%, from 5.25% to 4.25% (1% above prime), your monthly payment on $100,000 would drop from $596 to $540.

As we've seen in the news, over the last couple weeks, banks do not have to adjust their rates the same amount as the Bank of Canada.

Hope that helps!
BTW, check out my website for a Canadian Mortgage Payment Calculator
http://mortgage-shopper.info/Canada/mort…

Kathryn Said:

what is the mortgage lending rate for 7/28/06 home buyers?

We Answered:

are you really going to trust a loan officer named reaper - i am an underwriter it is only 6% if you have perfect credit money to put down and at least two years job history with income that will be enough to qualify for the payment - other than that you are looking at like 7.5% with these 106% financing opportunities

Patrick Said:

In 2002 mortgage rates fell and mortgage lending increased. Which of the following explain this?

We Answered:

I think you can make a good case for both supply and demand moving right. The supply would increase because as the rates came down at the Fed banks were able to borrow more that they could then lend to customers. The demand increased because with banks charging lower interest to borrow people were able to afford new homes and to refinance old homes or take out equity in old homes that couldn't have made payments at higher rates.

Derek Said:

Why do Mortgage Lending Companies have a high turnover rate for employees?

We Answered:

1.) Like every other sales job ... it is very difficult and stressful
2.) The employees who aren't in sales don't get paid very well

David Said:

My credit score is 760. What type of mortgage rate will I get in Illinois for an interest only 5/1 year arm?

We Answered:

You have an excellent credit score and should be able to get a very good interest rate with that score.

I am not against ARM products as most invdividuals are in this forum.

What you need to know about ARMs are that they will go up sooner or later. You should know the adjustment period, how ,much your payment will adjust each period of adjustment.

Now know this can you afford the loan product with the increase in the monthly payments. That is the cause most people fail in ARMs, they don't understand the terms and other things you are required to know about your about your ARM.

Make sure you get an underestanding from your mortgage broker as to what the loan adjustments are. Now once you sign loan docs, make sure they match what your mortgage broker has indicated they would be.

Mortgage rates adjust on a daily basis and even sometimes before the day is complete you can get a rate decrease or increase.

speculation is just that speculation.

So the first thing you should do is contact a mortgage broker so you can complete a loan application, after which he will run your credit report.

This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore.

Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment.

There are lots of documents and information the mortgage broker will need. I will give you a few to get you started.

#1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment

#2 One months of pay stubs from all that are going on the mortgage.

#3 Two years of federal income taxes and W-2s

After discussing the best loan program for you and agreeing on the program you want, the mortgage broker will issue you a pre-approval letter. Don't forget your good faith estimate (GFE). This will give you an idea of the cost of your loan. That
is in addition to any down payment how much additional cash you must bring to the closing table.

In order to preclude PMI when a lender will finance 100% of the house you are buying the mortgage industry have solved that problem by offering a 80/20 loan. Don't be afraid of them.

You have to understand that the increase in payment if the loans are adjustable.

Your first mortgage (80%) might be a fixed product, while your second (20%) could be an adjustable product. If you don't understand the product ask your mortgage broker and don't leave until he/she has explained it to your satisfaction.
Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign.

The mortgage broker will order an appraisal of the house to prove the value.

Once all the documents necessary has been collected the mortgage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile.

Don't sign the loan docs if anything has change from what the mortgage broker explained to you. Call and get an explanation.

I hope this has been of some use to you, good luck.

"FIGHT ON"