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You don't have $150,000 in cash laying around? Then chances are
your purchase of a home will depend on your ability to borrow 80
percent or more of the money you'll need.
Borrowing the norm
Before the 1929 stock market crash, cash purchases of homes were
the norm. Or if money was borrowed, it was on a term that typically
didn't last much more than five years. That made payments relatively
steep, which is part of the reason so many homes were lost in the
Great Depression.
After World War II the U.S. government created a mortgage program
that allowed veterans to make affordable payments over a 30-year
period.
Lots of choices
Today, the 30-year fixed-rate mortgage, while still the most common
way to buy a home, is just one of many financing options available.
Indeed, many mortgages today are almost custom-tailored to individual
needs.
Mortgage lending is a highly competitive field. Information on
mortgage rates, which can change daily, is available in local newspapers,
through mortgage brokers, from individual lenders and at the Lending
Center. When you're shopping for a loan, interest rates tell just
part of the story. You'll also need to study the various fees lenders
charge.
Ask your agent
Your RE/MAX
real estate professional can recommend lenders to check in with
prior to beginning any serious house hunting so you'll know exactly
what you can afford.
Canada's Best Mortgage
©
2001 RE/MAX
International, Inc. All rights reserved
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