Mortgage Links
AMERICAN BENEFIT MORTGAGE

Todays homeowner understands that a mortgage is flexible. When you think about mortgage benefits you know it is really a wonderful thing that will provide yourself and your family with the home you always wanted and to enjoy all the benefits of being a homeowner and best of all you can repay it on a monthly basis. Mortgage benefits extends to provide cash to the homeowner to upgrade their home, pay for a child's education, take care of unexpected expenses or even provide money for a dream vacation.

Most lending institutions will allow you some or all of the following mortgage benefits:-
  • Blended Rate- A blended rate mortgage may be used if you want to increase the amount of your present mortgage. This could happen if you want to use up some of the equity in your house, may be for renovations or to buy a weekend cottage. This option is worth considering if your present mortgage has a low interest rate or if you wish to avoid the penalty. With this option you get to keep the balance of your present mortgage interest rate, with only the new amount at today's mortgage rates.

  • Early Renewal- Most lending institutions will allow you to break your present mortgage contract and renew early. For example, if you had signed for a 5 year term but part way through (e.g. after 37 months) you decide that interest rates are the lowest ever and all indications are that they are going to start going up again, you may opt to renew early to get the low interest rates for a new term. You will, however, pay the institution a penalty for breaking your present contract. In spite of the penalty, this could still save you money.

  • Interest Rate Guarantee- Many lending institutions will guarantee you an interest rate as soon as they receive your application. The guarantee means that if mortgage rates go up, you will get the old, lower rate. The length of time of the rate guarantee varies by the lending institution and has nothing to do with the amount you are borrowing or how good your application is, it just depends on the policy of each lending institution.

  • Portability-This is the ability to take your mortgage with you. In reality what you get to take is the outstanding balance of your mortgage, at your present interest rate, for the remaining time. If you need a bigger mortgage, the institution may let you use portability and then 'blend' on the extra amount needed. This gives you the mortgage amount you need at a rate that combines both the old and the new rates.

  • Skip a Payment-Some lending institutions will allow you to skip one (or more) payment(s) per year. If possible, try not to use this benefit as the interest portion is added onto your balance owing and your mortgage will take longer to pay off.
Regardless of what your reason for considering a refinance or purchase, mortgage companies are there to make the entire process simple, quick and as painless as possible. All mortgage lenders try to serve mortgage seekers with exceptional customer service and complete honesty. They have to believe in the fact that the customer loyalty is something you must earn every day. So they tend to provide as much as mortgage benefits they can.
 
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