Purchasing a home in itself can be stressful enough. Being bombarded with unfamiliar jargon can add to that stress. Fortunately for you, we've created a helpful cheat sheet that will make you a mortgage expert in no time!
No-Frills Mortgage
It is a basic, bare-bones fixed-rate mortgage. While the rates quoted are generally quite low, there are some downsides to the low rates which we will touch base on below.
Advantages of a No-Frills Mortgage
- Low interest rates (Generally cheaper than fully-featured mortgages)
- Stability in payment amounts
Disadvantages of a No-Frills Mortgage
- Very limited prepayment privileges (Restrictions on how many prepayments you're allowed to make)
- High penalties incurred for refinancing or paying out the mortgage
- No added flexibilty for payment options
By the end of this 4-part series, you'll be well informed on the various elements involved in mortgage plans and you'll be able to decide on what plan is best suited for your needs.
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