Bank lenders offer the best & lowest rates in the market. They also provide different mortgages options that you can choose from depending in what works best for you. The following are some of the options and advantages you can have with bank lenders:
You can make extra payments for the mortgage
They allow you to make extra payments towards the mortgage in addition to the regular payments. Typically you can prepay up to 15% to 20% per year and you also have the option of going anywhere up to double on the monthly payments, both of these options go straight to the principal.
Mortgages are assumable and transferrable
Their mortgages are also assumable and transferrable. Assumable means that the person buying your property is able to take over your existing mortgage. When we talk about the mortgage being transferable we mean that if you sell and then buy, you are able to go back to your existing bank for the new mortgage, typically you can take the same rate and they will reimburse the penalty to you if you’re locked in a term.
You can choose if you want the bank to collect your property taxes
You have the option of the bank or lender collecting the property taxes for you or you can pay these on your own (the bank does not pay you any interest on the money when their collecting the property taxes). For high ratio mortgages, typically the bank will collect the taxes, if you put more than 20%, then you can choose whether you want the bank to collect them or not.
You can choose to make weekly, biweekly or monthly payments
You also have the option of paying weekly, biweekly or monthly. By paying weekly or biweekly accelerated, you can pay off the mortgage quite a bit quicker. This greatly cuts down the number of years that it will take to payoff the mortgage, instead of 30 years, by paying weekly or biweekly, you can reduce the amortization to about 24 or 25 years. Even once the mortgage starts, you are able to change the payment frequency anytime during the term of your mortgage.