Mortgages and Trends in 2024 with Eric Cyrenne, Mortgage Broker
In this article, we will be discussing various aspects of mortgages with Eric Cyrenne, a mortgage advisor. Eric shares valuable insights and advice on topics such as penalties, helping young people enter the real estate market, and mortgage renewals. He also provides information on trends and what to expect in the lending landscape in the coming years.
Penalties and Interest Rates
When it comes to penalties, Eric explains that banks charge the higher of two options: three months' interest or an interest rate differential. He notes that when interest rates are decreasing, penalties tend to increase, which can result in significant penalties for borrowers. This is especially true for those who took out a 5-year term and experience life changes such as a breakup, divorce, or job transfer within the first few years.
Mortgage Renewals
Eric emphasizes the importance of not simply renewing a mortgage with the current lender without exploring other options. Many clients make the mistake of ignoring the renewal notice and end up paying a higher interest rate because they didn't have time to negotiate with another lender. He recommends starting the renewal process as soon as the notice is received and engaging with other lenders or a mortgage broker to shop for competitive rates and terms. Eric also highlights the significance of considering factors beyond just the interest rate, such as product features, penalties, and payback options.
In this article, we cover various important topics related to mortgages, including penalties, helping young people enter the real estate market, mortgage renewals, and trends in the lending landscape. Eric Cyrenne, mortgage broker, provided valuable insights and advice on these subjects.
If you have any further questions or would like to contact Eric Cyrenne for more information, his contact information can be found below.