Sonia's Real Estate Blog

When it comes to buying a home and getting a mortgage, there are a ton of elements that go into this. It is more than just finding the home and getting approved for the loan. There are also various other fees to consider. One of these is the mortgage insurance. As an experienced REALTOR® and licensed mortgage broker, I find that this can be a surprise to many people, as they were unaware that such a thing existed.

What is Mortgage Insurance?

Why is this Needed?

When is Mortgage Insurance Paid?

1. This mortgage insurance must be paid the entire first year of the mortgage
2. For those with an FHA guaranteed loan, the mortgage insurance has to be paid for the first 5 years of the loan
3. When the loan balance drops down to 80% of the original purchase price, most people can request that this mortgage insurance no longer be paid. However, the lender will be the final one to determine if this is possible or not.
4. Many loan companies have to remove this mortgage insurance premium when you drop down to 78% of the total purchase price.

Sonia is your One Stop Shop for all Real Estate & Mortgage Needs! Call today: 780-707-6015

For those who are shopping for a home in Sherwood Park or Edmonton, whether this is their first home or their third home, the mortgage options you have can make it even harder to make a decision. So, once you have found the home of your dreams, what type of mortgage do you need? Well, you’re in the right place! Not only am a top 100 REALTOR® with Re/Max Worldwide, but I am also a licensed mortgage broker – an expertise combo that’s a rarity within the industry. I have put together some information on the differences between the two main types of Mortgages: fixed and variable mortgages.

What is a Fixed Mortgage?

What is a Variable Mortgage?

Which is Better?

If you’re ready to talk mortgages and real estate, call me at 780-707-6015 today or get in touch to get the mortgage pre-approval process started!

When you buy a home, part of the buying process is the closing costs. These closing costs can be a significant chunk of your total amount owed. And it is important that people who are buying a home are taking their closing costs into consideration when it comes time to save for their home.

What are Closing Costs?
Closing costs are the costs that are paid at the end of the transaction when a buyer and seller have come to a decision on what is to be paid and everyone agrees. During this time, the home is transferred from the buyer to the seller. These costs are incurred by either the buyer or seller and sometimes even a combination of both.

What Fees make up the Closing Costs?
There are several fees that can make up the closing costs. These fees are not going to be seen in every transaction, it really depends upon your location, the type of property you are purchasing, and the type of loan that you may be using. Here are a few of the fees that could be included:
– An application fee
– Appraisal
– Fees for the attorney
– Closing fee or the escrow fee
– Courier fee
– Credit report
– A deposit into your escrow account
– Mortgage insurance premium
– Home inspection
– Lender’s policy title insurance
– Origination fee for the loan
– Transfer taxes
– Underwriting fee
– Recording fees
– Property taxes
– And so on…

How Much Should you be Saving?
If you are saving for a home, then knowing what closing costs could be, this can help you to save for these costs. The key is to know just how much your closing costs may be. The rule that most people follow is that the closing costs are often two to five percent of the total home cost. When you do get a loan, more than likely the payback will include your closing costs in the total amount. This loan estimate is only an estimate, and this may change as other fees may be added, increased or decreased. Therefore, don’t think that this is a concrete figure.

Once you have closed on a home, you will receive a Closing Disclosure statement that is going to state what fees are being included in the closing costs. You can then sit down and look at these for a concrete amount. This way, you are not going to be surprised by how much your closing costs are going to be.

So, how much should you be saving? If you have a certain amount that you are wanting to pay for a home, be sure to save up to five percent of this loan for the closing costs. There are times in which you can get the sellers to pay this closing cost but do not count on this. Instead, take the time to make a budget that includes an extra 5% of what you wanted to pay for a home. Not only can I help you find your next home, but I am a licensed Mortgage Broker with Invis in the province of Alberta. Let me help make your home buying experience easier, faster, and way more fun!! Sonia is your one-stop shop for all your Mortgage and Real Estate needs!

Are you ready to save time, stress and money? I sure hope so! Because when you work with me, you get a top Sherwood Park REALTOR® and an expert Mortgage Broker all in one!

Since the beginning of my career, I have always been motivated to provide an even more complete and improved real estate buying experience for my clients. This is why I chose to be both a licensed REALTOR® with Remax Elite and a licensed Mortgage Broker with Verico iMortgage Solutions. This expertise combo is definitely a rarity within the industry and it’s also a very powerful one. I believe in assisting my clients through the entire process of buying and selling a home, and my deep understanding of the mortgage industry over the past 7 years has allowed me to become a stronger, more knowledgeable REALTOR® who can offer expert advice in all areas of real estate.

Not only am I finding my buyers and investors great deals on Sherwood Park homes, but I am also helping them find great deals on mortgage rates, terms and options available in the market place today.

So whether you are buying your first home or your tenth home, put my expertise to work for you! I am available to serve my clients 7 days a week and welcome your phone calls. Along with my awesome mortgage team, we can help you get pre-approved for financing almost immediately. Then it’s time for us to have a lot of fun house-hunting together! So let’s get started today! Ultimately, my goal is lifelong happy clients.

Warmest regards,

Sonia