Equity Mortgages

Equity mortgages can be easily arranged through The Verico Accede Mortgage Group

Equity mortgages are mortgages arranged with a lender where no mortgage insurance is required because the individual has at least 20% equity (down payment) in property. They have three main purpose:

• 1. The purchase of a home where the down payment is at least 20%. Recent changes to the Bank Act have revised the amount that lenders can lend without mortgage insurance upwards from 75% to 80%. This effectively give a homeowner with a home valued a $250,000 access and additional $12,500.
• 2. They provide home owners with an access to cash through the equity in their home. The use of this cash can be for such expenses as home renovations, investments, to purchase a second home or for debt consolidation.
• 3. And finally there is a segment of the home buying public with bad credit making conventional or sub-prime mortgages extremely difficult to obtain.

As a homeowner you can access the equity in your home in one of 3 ways:

• a secured line of credit provided by your 1st mortgage holder,
• a secured line of credit taken by another primary lender (usually a bank)
• a second mortgage

The following table illustrates the effectiveness of using the equity in your home for the purpose of debt consolidation.

 

Debt Consolidation Example:
Retail Credit Cards:
	Balance	Min Pmt
Visa	$3,500.00	$105.00
MC	$2,750.00	$82.50
MBNA	$8,600.00	$258.00
Citi Fin	$14,500.00	$435.00
Well Fargo	$7,200.00	$216.00
Total	$36,550.00	$1,096.50
Solution #1:	Secured Line of Credit*
A	$36,550.00	$186.41
B	$36,550.00	$365.50
Solution #2	Second Mortgage
Rate 12%	$38,325.00	$395.48

The monthly savings using solution #1 is either $731.00 or $910.09 depending upon whether the lender requires interest only payments or a minimum of 1% of the outstanding balance of the line of credit.

Even solution #2 provides a substantial monthly savings of $701.02. Solution #2 includes broker fees of 5%. the loan is amortized over 25 years

When others say "No".

For that segment of the home buying public with bad credit making conventional or sub-prime mortgages extremely difficult to obtain there is a solution. It means paying higher interest rates using private money but it bridges the gap until ones affairs have been reordered. Our mortgages provide alternative financing for those with at least 15% down.

• Up to 85% of appraised value, depending on location and property type.
• FAST, approvals and funding.
• No up front fees. (Broker/Lender fees apply on funding)

For more information on the use of Private Mortgages click here.

For more information on how to put an Equity Mortgage to work for you contact one of our mortgage professionals today.