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Page 18 The Clarington/Courtice Independent, Bowmanville, Saturday, February 15, 1996 Opening a Mortgage Doesn't Have to be Confusing for Home Buyers This article is provided by local Realtors and the Ontario Real Estate Association (OREA) for the benefit of consumers consumers in the real estate market. market. Buying a home today is an extremely attractive proposition. proposition. Interest rates are at their lowest in decades and the housing housing market is full of homes to suit just about any budget or family requirement. Still, you'll inevitably have to deal with financing and this will mean taking on a mortgage. Sorting through the numerous numerous mortgage options available to today's home buyers can be intimidating for everyone from first-time purchasers to longtime longtime owners. The rules seem to change constantly and there's a smorgasbord of terminologies to learn. Fear not - the basics are fairly fairly simple and there are a host of real estate professionals more than willing to help, with your Realtor and bank's mortgage specialist at the top of the list. Nonetheless, you'll want to at least familiarize yourself with the mortgage process, how to arrange one and the different different financing strategies involved. trust companies, but they can also employ other alternatives such as pension funds, real estate syndicates and foreign banks. You may also find yourself in a situation where you can 'assume' an existing mortgage held by the seller. Advantages of assuming a mortgage are that you can speed the buying process due to reduced paperwork paperwork and save money in lower First, it's necessary to know legal fees and closing costs. A exactly which kinds of institu- disadvantage is that the current lions will lend you money, lending rate may be less than Banks and trust companies lead that of the assumed mortgage, the pack, but credit unions and . Different Mortgages private lenders also offer funds. Now that you have an idea There's also an option to who will lend you money, consult a mortgage broker. Brokers have access to a wide variety of lending sources, including domestic banks and FRANK REAL ESTATE LTD. 234 King Street East, Bowmanville Telephone 623-3393 Toronto Line 686-1035 GREAT HOME - ORONO $129,900. Solid brick 3 bedroom home with central air, hardwood floors, deck, wood/oil combination furnace. Call Charlie Reid* 623-3393 or 983-5914. » JUST LISTED-$127,900! | Well built 3 bedroom brick bun- | galow in Bowmanville. Hardwood floors, full basement, | workshop with separate electrical electrical panel, central air, good roof, immediate possession. Call Charlie Reid* 623-3393 or 983-5914 llkp POWER OF SALE 4 bedrooms, spacious kitchen with walkout to back yard. Two 4 piece baths and 2 pc. bath. Single car. garage. $148,900. $28,000. DOUBLE LOT IN CAVAN with easy access to the 115 Highway. This building lot on the Tapley 1/4 Line is 491' x 229'. Survey available. Call Val Aston** 623-3393 or 623-4907. la PICTURESQUE AND" PRIVATE-4 ACRES Backing onto woods sits this gorgeous gorgeous 3 bedroom home, sunken living living room and family room, cathedral ceiling, open concept dining room, 2 fireplaces, 2 balconies. East of Kendal. Asking $159,900. Ann Van Dyk* 623-3393 or 623-4638. PETER KOWAL Real Estate Limited Broker l : 52 Klhg-SCWést • Bowmanville . Phone: (905) 623-2453 ... Fax: (905) 623-0136 SERVING BOWMANVILLE AND AREA SINCE 1955 A SMALL OFFICE THATfS SERVICE! FENWICK AVE. Move-in Condition! Artistically Decorated! Economical gas heat! 2 Bedrooms! Large Living Room! Spacious eat-in Kitchen! One Car Garage! ALL THIS FOR $112,900. DON'T OVERLOOK THIS ONE! CLARKE ST., NEWCASTLE Country Setting near 401. older 3 bedroom home on large lot 230' x 150' with 2 car garage. CALL FOR DETAILS. PRICED at $139,900. KING ST. WEST Commercial Block. 14 Units in total. Good Condition and Excellent Returns. $475,000. Terms to suit. BUILDING LOT ,t NEWCASTLE EAST Ready to go!! 118 ft. x 362 ft. Cleared building site and some bush. Well and driveway in. Asking $54,900. with builder's terms. DEVELOPMENT CORNER Last and Best Location at Hwy. 2 and 57. 6.04 Acre Development site. INVEST HERE!! Could be better than drawing interest. Presently has 4 income units. CALL OFFICE FOR DETAILS. DOWNTOWN COMMERCIAL Well maintained building in downtown core. Would make 2 stores or offices with 2 bedroom upper living quarters. Please call for information. - 905-623-2453 - AFTER HOURS: Banner Passant, Assoc. Broker.. 905-797-2819 Doreen Tillson, Sales Rep 905-623-7803 Tom Turner, Sales Rep 905-623-5510 Mac McDonald, Sales Rep....! 905-623-7717 Elaine Kowal, Sales Rep ; 905-623-5868 Peter Kowal, Broker/Owner 905-623-5868 you'll need to know the different different kinds of mortgages that are offered. The most common by far is the 'conventional mortgage' mortgage' . Lenders will loan you up to 75 per cent of the appraised value or purchase price of the property (whichever is lower), and you must come up with the remaining 25 per cent yourself. Many people save specifically for this. purpose, but in some cases, alternate or 'secondary' financing may be available. A 'high-ratio' mortgage is one alternative if you don't have the 25 per cent down payment. payment. These are available for up to 95 per cent of the appraised value or purchase price of the property (whichever (whichever is lower) to a maximum set by government regulation. The proviso is that high-ratio mortgages mortgages must be insured, and the cost, from one to three percent of the mortgage amount, falls to you. . T 'Variable-rate' mortgages • are usually offered for both conventional and 1 ; high-ratio mortgages. Typically, your monthly payments remain fixed for the term, while the interest rate fluctuates with economic conditions. This means that if interest rates climb, you'll be paying more per month in interest. If rates drop, you'll then be paying more off your principal. Conversely, 'fixed rate' mortgages mortgages maintain the same rate of interest over the entire negotiated negotiated term. There are some other concepts concepts to become familiar with that will impact your mortgage and financial well-being. Amortization refers to the time period in which the mortgage mortgage is assumed to be paid. A common amortization period is 25 years. This means interest and principal payments are set as if you were paying the amount borrowed over a 25 year payment schedule. Obviously, the shorter the amortization period, the less interest you will pay. Prepayment privileges are very important for borrowers to consider. These arrangements allow you to pay money against the principal, reducing the total amount of interest you'll ultimately ultimately pay. HUGE$M»$ m ENFSE m rm, FROM Call (905) 721-1300 CHOICE OF/ PREMIER RE*LTYLTD.^pj|^jy 15 Albert Street, Unit 4, Oshawa, ON LI H 4P7 Do not pay excessive commission. Home owners SAVE $ $ $ when the commission is less. TOM MITCHELL SALES REPRESENTATIVE Not intended lo solicit properties currently listed tor sale. 0 COMMISSION CJ.P. 234 King Street East Bowmanville Customer Satisfaction First Priority Full Time Real Estate Service lOff. 623-3393 Res. 623-7928 John Fowler Sales Rep. WebSite: http://www.reelestatewithrod.cpm **' V - B * rio'uu E-Mail: roddoris@reelestatewithrod.com RE/MAX Dir. Line: (905)623-5661 Toll Free: 1-888-623-5661 i -y* fr } WW ROD DORIS Associate Broker 100% CLUB For a F Call my for profession ** LISTINGS WANTED IN ** Newcastle, Bowmanville, Courtice and Surrounding Areas I have buyers looking for Bungalows to Two Storey homes in the range of $99,000 - $300,000. Your home must be well kept and in move-in condition, and must be available for showings with little or short notice for quick results. Serious sellers only. : REE Computer Market Evaluation 24 Hour Hot Line at (905) 623-5661 ilism at its best. call the name people recommend to friends <*|N^ 104 King St. E., Bowmanville WMK' cornerstone realty ltd., realtor 623-6000 HANDY MAN'S SPECIAL! 3 bedroom, living living room, dining ; room and kitch en, 2 storey semi, close to Ron Moore* schools and Sales Ren': shopping. baies Hep. Priced t0 se) , 623-6000 $104,900. 24 hr. 623-9263 (res.) . Call Ron Moore* to view 623-6000. SINGLE OR STARTING OUT Come see this lovely 1 bedroom mobile in nice park. Appliances and all window coverings are included.. Sliding, glass w/o Sales Rep. to large deck. Gomes "with extra large insulated shed. ( Only $19,000. Call Dianne Warren* Office 623-6000 Dianne Warren*' HELP!! All my home listings have sold. If you're planning on selling, give me a call. I have a "SOLD" sign for you. Tor. Line 428-1206. GRASSHOPPER ROAD Beautiful 4 bedroom home on 12 1/2 wooded acres. Located just north of Bowmanville in an area of country estates. Overlooks your own spring- fed stocked pond. Around 2800 sq. ft'. Very well finished plus a full basement and large double garage. Offered at $329,900. _ „ _ . @JP Call Doug Humphrey ORONO VILLAGE 3 bedroom Orono Village, home ; - includes walkout from family room, bright eat-in kitchen plus large garage on 65' x 165' .lot! Asking $112,500. 623-6000. Marg Bain* Sales Rep. Call END UNIT FREEHOLD TOWNHOUSE Power of sale - features main floor family room with fireplace, separate dining room, large eat-in kitchen with walk-out to deck and BUNGALOW WITH A VIEW OF LAKE & TOWN Overlooking Bowmanville, situated on a 100x150 ft. lot is this lovely 2+2 bedroom home. Attractively finished Marg Bain* for fenced yard, 3 bedrooms, master walk-out basement has 2 more details at: with, 4 pc. ensuite, finished rec. bedrooms, rec. room with (905) i room with bar. Upgraded broad- wood burning stove and a 3 623-6000 loom; Listed at $141,900 pc. bath. $164,900. Brian Fraser* Sales Rap. v UPDATED AND UPGRADED 3 bedroom semi, close to everything, pine family room with gas fire place. Asking $118,500. To view call Brian Fraser* 623-6000. RETIREMENT BUNGALOW Call Linda Absolutely spotless, 2 bedroom Newcastle model. McLennan** Florida room with berber carpet. Living, dining Associate room and hall have upgraded carpet. Oak kitchen cupboards. 4 year old Wintite windows. Forced air electric with air conditioning. 2 retractable exterior blinds. View of lake. Asking $68,900. Broker 623-6000 To view call Linda McLennan** 623-6000. HOBBY FARM 10 acres. 6 years new. Ventury home with over 2000 sq. ft. of living space, walkouts and deck. Asking $171,500. David Passant** Assoc. Broker Over 21 Years of Service For a market evaluation of your property, please call David Passant**, Associate Broker today! JUST MOVE IN! Freehold Townhome. Finished top to bottom. Deck and above ground pool. Asking $112,900. Also Lots and Lots of Lots and Acreage. f I fa