About Mortgage Types
Let Steenbeek Mortgage Team Help You Find the Perfect Mortgage!
Whether you’re a first-time homebuyer, a repeat homebuyer or looking to refinance, I can help you find the ideal mortgage that suits your budget and future plans. I’ll be there, by your side, to guide you every step of the way, making sure your experience is as stress-free as possible!!
Types of Mortgages
Closed vs. Open vs. Convertible
Closed Mortgages generally have prepayment options of up to 20% of the original mortgage amount. If you decide to pay out, renegotiate or refinance before the end of the term of a closed mortgage, prepayment costs will be applied.
An Open Mortgage can be repaid at any time throughout the term, either in full or partially without paying a prepayment charge. Provides flexibility until you are ready to lock into a closed term.
A Convertible Mortgage is similar to a closed mortgage, but gives you the option of converting to a longer, closed mortgage at any time without paying a prepayment charge. With this option you can generally make an annual prepayment up to 10% of the original mortgage amount.
Types of Mortgage Interest Rates
Fixed vs. Variable
A fixed interest rate does not fluctuate during the mortgage term. This option allows your payment to remain constant so you know exactly how much you will pay every month and the amount you will have paid off at the end of the term.
A variable interest rate will fluctuate with prime rate throughout the mortgage term. This impacts the amount of principal that you pay off each month as your mortgage payment will remain constant.