About Flexible Mortgage

• to make overpayments (more than the normal amount)
• to redraw (borrow back) any previous overpayments
• to underpay - less than the normal amount
• to take a payment holiday - stop repayments for a period, typically 3 to 12 months.

• [Mortgage]s

Flexible mortgage

Questions and Answers

can I take out my overpayments on my flexible mortgage ?

Q) It is part reypayment (£12k) part interest only (£21K) I have overpaid by £10.5K, and want to pay off the mortgage early. What might be the restrictions ? EGG say I cannot withdraw the £10K but I am awaiting them to tell me what the befit of my overpayment has been.

A) The main benefit from paying off a mortgage early is less interest you pay on the Principal amount borrowed. Thus this reduces the effective interest rate since interest = Principal X time X Trate use of the money. The other thing is you will own your home much sooner and can invest like no other for your future. What else would you like to know?

Am thinking about changing my mortgage?

Q) Can anyone recommend any good mortage deals at the minute either fixed or discounted rates with no fees. I have a tracker mortgage at the moment with the Haliax and have got 17 years to run. Have been looking on the net but most of the big lenders do not want to give much away. Some says no fees but when you read the small print that isn't true as they still want to charge you a valuation fee. I am not loking at extending the term and definately will not require extending my loan or wanting to take holiday periods. Flexible mortgages look ok in principle but they seem to cater more for borrowing more money than getting rid of the milestone. Most standard mortgages will let you pay an extra 10% off each year anyway. Thank you

A) I changed to Nationwide last year. Got a great 10 year fixed rate and the only fees I had to pay were for the arrangement which was £299. This was added to the mortgage though so nothing up front. Valuation and legal fees were all paid and it was a simple process - completed in a month. Not sure of their deals at the moment but well worth checking out.

Should I stick with my mortgage?

Q) I currently have two mortgages both fixed, one runs out in March (45k, 4.9%) the other in Dec2008 (70k, 4.8%). The early settlement on the 70k mortgage is nearly £2000. They are both with same company (Abbey) so I wonder if I should just pay the extra on the 45k (I think this will rise to normal rate of 7%) until Dec2008. I would like to get a more flexible mortgage so I can maybe pay it off early, rather than reduce the term which I consider risky, as my overtime varies considerably.

A) get independant financial advice.OK you pay for it, but it is worthit in the end as you will get good advice

most flexible mortgage payments you have heard of?

Q) Is there some even more flexible than 30 years? Thanks!

A) Absolutely. As was mentioned, there can are loans that have a term (number of years until it is paid off) from 15-50 years. This lowers the monthly payment, but you pay the principle down lower. In addition to the Option ARM mentioned above, you can choose loans that give you an Interest-only option. One particularily flexible program (that is also gives security) is the 30 year fixed with 10 year interest only. It locks a rate in for 30 years (unlike Option ARMs), but allows you to make interest only payments during the first 10 years.

Help I need to find a flexible mortgage company......!?

Q) I currently have a credit score in the 570's but only work part time, my husband's is in the 470's but is the primary income, Does anyone know of mortgage company who will do this type of a loan? Please Help!!!!!!!

A) They have REALLY tightened up the mortgage application process. With your poor scores, you will end up paying a much higher rate, if you can get approved at all. My suggestion to you is to stay in your apartment, and pay your bills on time. Every time. Get a credit card or two, and pay those on time, every time. If you can do that for a year or two, your score will start to go up, and then it might be time to buy. If your bill paying history is that bad that your scores are this low- renting might be your safer choice for now anyway, until you are sure you can handle all the expenses that a house comes with that an apartment does not (taxes, homeowners insurance, utilities, home maintenance, etc)

What is the best provider for "flexible" mortgages that allow savings deposits to offset mortgage balance?

Q) This is known as an offset or flexible mortgage in the UK. However I cannot seem to find a similar option in the US.

A) I'm not aware of any such mortgage product in the US. We don't have endowment mortgages here either, thank God!

Who is a dependable, flexible, sub-prime mortgage lender that would be able to do a 553 mid score?

Q) I live in NM by the way.

A) New Century Financial!!!!!

What is an ARM in the mortgage world?

Q) Also what is the best loan for a home mortgage? Fixed? Flexible? I'm confused? You couldn't tell could ya? *giggle*

A) ARM = Adjustable Rate Mortgage, this should be avoided when you know that you are going to live in the same house for more than 5 years. ARM mortgage can be 3,5 or 7 yr ARM. In these first 3,5 or 7 yrs are generally fixed and then for rest of the term it is Adjustable. Fixed rates are best these days if you can get a rate less than 6.75%. If you want to go for adjustable rate make sure there is a cap and it should not go more than 7% otherwise some times the interest payment can go higher than the principle. I am sure you don't want that. Good Luck with your Mortgage

how do I get an offset mortgage in the USA - are they legal?

Q) I used to live in the UK and a fairly common mortgage was an "offset" or "current account mortgage" where the money in your checking and/or savings accounts was used to offset interest on the principal for your mortgage - as opposed to earning a lower rate of interest. These are flexible and cost effective accounts but since moving to the US 7yrs ago I haven't been able to find one. Are they legal here?

A) I've been in mortgages here in the US for 10 years. I've never seen one. I know what they are, I looked them up after seeing the term on here. It's possible they exist in the private banking world, but I don't know of any in the normal market.

I have a 280,000 mortgage. I have 150,000 in stock. Should I sell and pay off some of my mortage.?

Q) Mortgage is a 5yr fixed at 4.75%. It will convert to flexible in 2 years. I have no other savings. I earn 108,000 a year and am 40 years old.

A) You make 2000 a week. Your mortgage is only about 1400.00 a month. You should have tons of money unless you are living beyond your means, and aren't we all? Keep the stock if doing well, if you sell you'll get killed with the capital gains, especially in your income group. OR, sell the loosers or a portion of thes stock and put it into other vehicles. Pay a couple extra dollars every month on the mortgage and it'll be paid off quicker. Start saving something, even if only $1000 a month. Try living a little simpler, and getting rid of some of those toys. Yes, you can live without that big boat, some of us only have canoes, and you don't need the luxury sedan, they have all the same toys in cheaper cars.

Has anyone heard of Freddie Mac's Home Possible mortgages?

Q) They claim to give flexible mortgages to help teachers, cops, firefighters, and healthcare workers so that they can live in communities they serve. When I asked my mortgage broker she said it was a gimmick.

A) They don't do anything real to help. It's a marketing gimmick. I can can find city and county first time buyer programs that give you a silent second that loans tens of thousands and saves you hundreds of dollars per month. Or I can make clients "feel special" with Freddie Mac. Guess which one brings the clients back with referrals?

I need to refinance my mortgage next month. What questions should I ask the lender to get the best deal?

Q) I was going to compare rates @ the Lending Tree. What do I need to know or need to ask? Do I need money down, need to pay points, how much are closing costs? I now have a fixed rate that is turning into a flexible rate next month. I pulled up my credit report and looked up Experian and I have a 740 "vantage" score. What kind of rate could I qualify for? Please help! Thank you for your information!!!!

A) Hello Aunt Fanny, You are on the right track with the few questions you have asked here.. In a refinance transaction, you do not need to have any money down... All closing costs will be rolled into the loan itself.. As for paying points.. You do not need to pay points.. It makes no sense to pay points in a refinance loan.. If you have a broker trying to charge points, they are simply overcharging you to make a profit.. As for closing costs, there are a few third party companies that have charges that cannot be wiaved to complete a refinance.. These include title charges, appraisal, closing, processing, and underwriting... These are all tasks preformed by anb outside organization and are a necessity to complete a transaction... Other fee;s that can be charged are origination and broker fee's.. Typically these fee's can range anywhere from $1000, to $5000 depending on your loan size.. My company on the other hand only charges a $500 administration fee. there are no broker fee's or origination fee's... as for the sentence you wrote "i have a fixed rate that is going flexible next month" just so you know, this means you have an adjustable rate mortgage, or ARM... You have a fixed period (2-7 years) and then it adjusts.. If your rate is about to adjust, you want to act now before your rate sky rockets.. If you plan to live in this home for the rest of your life, i would suggest you get a FIXED rate this time around.. If you plan to move in less then 7 years, then it will be better for you to get an ARM..(They are lower then a fixed rate, but only smart if you plan to sell or refi before the adjustment point) As for what you qualify for, with a credit score of 740, as long as your other qualifying factors are okay (income, reserves, equity) then you will qualify for a "conforming interest rate" or in other words, A+ paper... You have a very good credit score so you will qualify for a good interest rate.. (probably around 6.125 - 6.5%) (just estimating, it could be lower depending on your factors) And last but not least, i want to tell you a little bit about "Lending Tree" Just to let you know lending tree is not a mortgae lender... I know their commercials make it seem that way, but what they do is act as a lead generator... You submit information online, or by phone, and lending tree then sells it to 4-5 mortgage companies.. Now one might think it is smart to have 4-5 companies look at their credit and give them an analisys... Unfortunately, THIS CAN BE DETRAMENTAL TO YOUR CREDIT SCORE... What i mean by that is every single time you have a mortgage company look at your creidit, it creates what is called an "inquiry" Every time you get another credit pull, or inquit\ry, your creidt score drops..(sometimes as much as 2-3 points) This is the last thing you wnat to happen.. Every point you lose on your credit could mean thousands of dollars more you spend in interest!! What i always suggest is that you work with a single lender that is "partnered with multiple investors".. My company for instance is licensed and partnered with 42 spereate lending institutioins.. We pull ONE credit report, and then shop among our investors with the "one single report" By doing it this way, i can find for you which lender is willing to giv eyou the lowest rate and fee's, and the best possible mortgage solution for you... This is the whole idea behing being a mortgage advisor.. Its no different then real estate agent who assists you in finding the best home, or a financial planner, who assists you on where and how to invest your money... From experience in working with Lendng tree in the past, it is more of a hassle then it is a convenience.. The last thing you wnat is 4-5 mortgae companies hounding you, and more importantly having multiple companies pull your credit....Not a good idea for any consumer... So, i hope ive answered your questions thoroughly, if i havent, or you have any more, i am available at all times to answer anyting else...I ahve helped alot of people from this site both refinance a mortgage, and also purchase a new homw.. I take pride in knowing that i can help people in need of answers both make a educated decision, and offer assistance with the financing side of the loan... Feel free to call or email me at any time!! Good luck! Jason Fry Licesned Mortgage Advisor Providential Bancorp jasonf@providential.com 312-550-5583

Where can I find experienced loan officers in Yonkers, NY that want to earn up to 90% in commissions?

Q) I need a good resume source to find quality employees looking to become future entrepreneurs in mortgage financing. We offer flexible hours and 1099.

A) Ask Dolly Levi, but remember.....Don't rain on her parade!