The basic choices to look at in selecting a mortgage include:

• Conventional or high ratio mortgages.
• Short term vs. long term.
• Specialty mortgages that creatively combine the best of all worlds.
• Closed or open mortgages.
• Fixed rate vs. variable rate.

     A conventional mortgage is a loan for no more than 75% of the appraised value or purchase price of the property, whichever is less. A high ratio mortgage is usually for more than 75% of the appraised value or purchase price.

     The term you select is important too. Short term mortgages are appropriate if you believe interest rates will drop come renewal time. Long term mortgages are suitable if you feel current rates are reasonable and you want the security of budgeting for the future. This is especially important for first time homebuyers. The key is to feel comfortable with your mortgage payments

     You can choose a fixed or variable interest rate. A fixed rate mortgage allows you to budget precisely for whatever term you select anywhere from one to occasionally 25 years. A variable rate fluctuates with the market.

This information is intended as a guide for those interested in finding a real estate agent to assist them with the purchase or sale of a home. It is not intended to solicit services from those who have already signed listing agreements with a licensed Realtor or to act as legal advice