Flipping Houses - Get An OPEN Mortgage
Ben Schmidt of www.benschmidt.tv a Fredericton NB and Oromocto NB Real Estate Agent video blogs about the importance of an open mortgage if you are selling quick
Just a suggestion to people, that are turning real-estate over quickly. If you are buying a property, and your intentions are to sell that property soon, when you get your mortgage on your property make sure that you are into a open mortgage. You will normally have to pay a higher interest rate but you will be able to pay that mortgage without penalty.
If you have a fixed term mortgage the bank will charge you a penalty for break the term of your contract. Lets say 5 years is your term. You buy a house, do some renovations, an rent it out for a year. The next year you go around to sell it, your gonna pay penalties to the bank, to your mortgage company to break the mortgage. If you have an open mortgage, again you will pay on more on the monthly basis in terms of a rate, but you will be able to sell the property and close the mortgage without a penalty.
So a tip for anybody that is thinking about buying and selling quickly, If you have any questions about that, make sure you give me an email. its ben.schmidt@me.com and thank you very much Fredericton, we will be talking to you real soon.