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At AAR Mortgage Corporation, we provide first, second or third place mortgages for our clients. Generally we will finance up to 75% of appraised value, but will consider additional funds if the appropriate conditions can be met. Interest rates can start as low as 7.9% per annum and are based on the customer's overall application. Our terms are 1 to 5 years with amortization up to 35 years.
Legal fees can be added to the mortgage total. The residence will be appraised by an accredited appraiser and this fee is to be paid by the applicant. Our policy is to provide our clients with a decision on their application within 48 hours, once all the required information to make that decision is made available.
What is a home equity loan?
A home-equity loan, also known as a second mortgage, lets homeowners borrow money by using up to 75% of the equity in their homes. We provide a single, lump-sum payment to the borrower, which is repaid over a set period of time. The payment and interest rate remain the same over the term set on the loan.
What is "home equity" ?
As you make your mortgage paymens each month, you build equity in your home. The term "equity" refers to the difference between the value of your home and what you owe on it. For example, if you have a home with a fair market value of $200,000 and a mortgage balance of $100,000 your available equity at 75% would be $50,000.
Example Details:
| Value of home: |
$200,000 |
| Equity at 75% |
$150,000 |
| Less 1st Mortgage Balance: |
$100,000 |
| Available Equity: |
$50,000 |
What is the benifit for consumers?
Home-equity loans provide an easy source of cash. The interest rate on a home-equity loan - although higher than that of a first mortgage - can be lower than those on credit cards and other consumer loans. As such, the number-one reason consumers borrow against the value of their homes is to consolidate debts. Consolidation isn't the only reason to consider a home equity loan. Home rennovations, dream vacations and even more are great reasons to call us today.
Typical Example
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Before: |
After: |
|
| Mortgage |
$659 |
$1078 |
| Visa |
$186 |
0 |
| Department Store |
$206 |
0 |
| Auto Loan |
$213 |
0 |
| Mastercard |
$186 |
0 |
|
| Total |
$1450 |
$1078 |
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|
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You save $372* every month * Based on original mortage of $100,000 @ 7% over 30 years, and new mortgage based on $125,000 @ 10% over 30 years.
Credit not perfect?
We recognize that not everyone has perfect credit. That's why our loans are designed to fit just about any situation and budget. We work with you to design an affordable and convenient financing solution to meet your specific needs.
Glossary of Common Financial Terms
Amortization - The length of time that you have to pay the mortgage in full.
Appraisal - The estimated fair market value of the home. Lenders need this in order to approve your mortgage.
Co-signer - A person who signs the home loan with you stating that if you default on the loan, he/she will take over the payments. Equity - The difference between the amount owing on a mortgage and the value of the home.
Principal - The amount of money you owe on the mortgage - it does not include the interest.
Refinance - Getting a new mortgage on your home and cancelling out your existing mortgage.
Security - This is also called collateral and is usually the home. If you do not repay the mortgage, the lender can foreclose on the loan and take the home.
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