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| Why is the
"rate guarantee" important?
Without it you might kiss that rate goodbye.
A rate guarantee ensures that you get the rate you originally
applied for. Sentinel's lending institutions guarantee
their rates for a minimum of 90 days, up to a maximum
of 120 days depending on the institution. This gives you
the secure knowledge that your rate will remain the same
throughout the guaranteed period. [Top]
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| Why is "assumability"
important?
 If the mortgage is assumable, it can be taken
over by the next purchaser of your home.
- If the mortgage is 'assumable with approval', the
lender must approve the person assuming your mortgage.
- If the mortgage is 'assumable WITHOUT approval', the
lender cannot refuse the person assuming your mortgage.
Although this is more desirable, you are normally held
responsible if the new borrower defaults. [Top]
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Why is the
"discharge" policy important?
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For reasons planned or unplanned
the borrower may need to sell BEFORE the end of
the mortgage term.
Discharge fees vary widely between lenders
which may result in thousands of dollars in
penalties. Worse yet, if the discharge
policy is 'No Discharge', the borrower may be
locked-in for the entire term of the mortgage.
[Top]
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| Why is "portability"
important?
For reasons planned or unplanned, the borrower may need
to sell BEFORE the end of the mortgage term.
Portability provides:
- Transferring a good interest rate into a new home.
- Avoiding discharge penalty fees.
If the portability of a mortgage is not good, it can
cost the borrower discharge fees or the loss of a good
rate. [Top]
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| When is "interim
financing" important?
 For example:
your new home closes in 60 days but your current home
closes in 90 days. You will need interim financing
for the 30 days that you will own both homes.
If the lender you choose cannot provide you with interim
financing, you may find getting it from other lenders
will be very expensive. [Top]
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| Why be concerned
about "appraisal fees"?
Not all lenders charge the same fee for this service.
You will find that appraisal fees and policies vary greatly
from one lender to another. [Top]
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Why is "increase
& blend" important?
Increase & blend provides:
- Increasing the total mortgage amount.
- Blending the rate of the existing mortgage balance
with the rate of the increase amount, possibly providing
a lower rate than a new mortgage. [Top]
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Should I pay monthly, weekly,
or bi-weekly?
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People assume they have to pay monthly as they did
as renters. Clients need to realize that by paying bi-weekly
or weekly, they save a lot of money. |
For example: on a Mortgage of $100,000 with a 7% interest
rate, monthly payments would be $700 and it would take 25
years to pay off this debt. By paying weekly or bi-weekly,
the amortization is reduced by 4 1/2 years. This saves over
$29,000 in interest savings.
You are encouraged to match your paydays with mortgage
payment dates. The new lending institution will pull payments
out of your existing bank account, thus eliminating the
need to start up a new bank account. [Top]
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Why should I insure my mortgage
using Life Insurance?
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Life insuring you mortgage is an inexpensive way to
protect what is important to yourself and your family.
If something happens to you or your spouse, (if joint
coverage is chosen) the mortgage will be paid in full.
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There are many plans available. Some premiums come out
with your mortgage payments and others can be setup as a
separate life insurance policy for added protection. Ask
for details if you are interested in the many different
options available. [Top]
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