Mortgage deal

Questions and Answers

Redemption penalty applies to early repayment and transfer of same mortgage deal to another property?

Q) I bought my first house in December 2006 jointly with my husband. After having redeveloped the property, we would now like to sell the property on and make a nice profit on the sale of this house. However, Birmingham Midshires state that there will be an early redemption penalty of around £11000 to pay, should the mortgage be repaid within the first two years (i.e. prior to December 2008). Does this early redemption penalty still apply if we wish to continue to use Birmingham Midshires as our lender and if we wish to continue to use the same mortgage deal as we presently do and the new mortgage is the same value as the amount we presently owe? Any suggestions appreciated! Thanks!

A) There shouldn't be a charge as what your wanting to do 'porting'. This is basically where you sell your current house and move the product to the new property. The redemption charge only applies when you're literally paying off your mortgage by remortgaging or paying it off by other means. This isn't the case from what you've said. Hope this helps xx

Where can I find the best mortgage deal?

Q) My partner and I are looking for a mortgage lender. We are 1st time buyers in England(midlands). We would prefer a 100% mortgage but my partner has CCJs(they are all paid off)and I currently don't work. We have looked into different mortgages but can only get around £75000 and would also need a deposit. This is a problem because all the suitable houses are over £100000 and also, because we have quite a high rent, there is no way we can afford a deposit. Does anyone have any ideas of where to look? My partner has a good, well paid and secure job. we do have credit unions but I am not sure how good they are. I think they are more for people on social security and stuff like that. I will try them though.

A) Speak to Phil at Suttons, he is an independent financial advisor, he doesn't charge for his services, and will find you the best deal. He will try harder than others to get you a mortgage because he gets a commission from whoever he recommends you to. You need to have saved with a credit union for some time, before you can have any sort of loan from them, it is best to speak with an independent financial advisor. You could try looking at the following website, you may need to do a bit of searching on it to find what you want. www.motleyfool.co.uk

Who offers the best mortgage deal to first time buyers with a 5% deposit?

A) Most Sunday papers have an article on best buys like this so have a look. There are also web sites such as Moneyexpert.com. and MSNmoney.

Whats the best 5yr fixed rate mortgage deal on the market?

Q) with no extended redemption period after the 5 yrs and a low arrangement fee?

A) Currently have a 6% fixed for 20 years, no Early redemption fee and 1 off payment £125 arrangement fee. Bradford & Bingley.

Where I can find the best mortgage deal?

A) go to www.moneysupermarket.com they compare lots of different prices.

which bank offers the best buy-to-let mortgage deal?

Q) I only can pay up to 10% deposit.

A) Most of them require a 15% deposit as far as I am aware. If you check with an independent broker he will find you the best deal for your individual circumstances.

Does anyone know any mortgage brokers that deal with future mortgages?

Q) I am looking to get a mortgage with future mortgages but I have phoned them and they only deal direct with brokers so now I need to find a broker. Or any brokers that could get 100% mortgage for people with bad credit?

A) I know that Manning Staintons deal with Future Mortgages as this is who we have our mortgage with. As far as I know Manning Staintons do provide an independent financial service. It may be worth contacting them!

Best Buy to let mortgage deals?

Q) Anyone know what the best websites are for buy to let mortgage deals?

A) www.moneysavingexpert.com

is a 10 year fixed rate mortgage at 5.08% a good deal?

A) The rate sounds good but that is a huge period of time to sign up for. If the mortgage is portable and you can therefore take it with you if you move to another property it maybe isn't so bad, but you would have to carefully check the penalties etc of ending the mortgage early which is likely to cost you thousands of pounds to do so.

whats the best way to deal with an endownment policy that isnt going to pay my mortgage?

Q) after 20 years we now find that our mortgage wont be finished in 5 years a we hoped its devisating when you are getting old to find this out can anyone advise me in a helpful way please

A) 1 option.. Find out exactly what the minimum guaranteed amount your policy will pay out. Contact your mortgage lender and ask them to change your mortgage so that the minimum guaranteed amount is on interest only and the rest is on repayment. Your monthly repayments would be a bit higher than they are now but you will have fully repaid the repayment part at the end of the term and the endowment policy will take care of the interest only part. If the payments are then too high you can see if you can review your mortgage to another product for a lower rate and do the same with the interest only and repayment amounts.

Best mortgage deal?

Q) My sister in law is moving to Florida and is looking for the best mortgage deal that she can get. She has the house picked out and now needs the best 30 fixed with no added cost. Any help would be greatly appreciated. Please don't say go to lending tree or one of those. She just wants one name, one number and one great deal. Thanks much!

A) Try Advanced Capital Group, Inc. They are licensed in Florida, and offer great deals, low closing costs and will work with her to get the lowest possible homeowner's insurance and post closing to help her secure mortgage protection which is so important and almost always overlooked. Email me and I can give you all of their information.

how hard is it to find a mortgage deal?

Q) if your just doing it part time 4-5 hours a week?

A) Sorry when you said mortgage deal, you meant by finding people to get the mortgage from you? You would like to look at how attractive your rates are. These days people are borrowing a lot to buy house, flat, apartment. The rates are very competitive, people would be looking out for the other things you be able to offer. Hope I answered your question.

I'm refinancing my home, what advise you can give me about the mortgage deal, etc?

Q) i dont what be steal again by a bank thank you right now they are offer my 6% at 30 years. i ask for not penalization for pay to the capital any time i can and they say yes. In basic words what do i have to be alert on the small letters?

A) My husband is a loan officer at Home Funds Direct. I would be happy to give you the phone number to call him or you could give me your number and I could have him call you. Email me if you want the number.

How can tell if you are getting a good deal on your mortgage loan?

Q) My husband and I are scheduled to close on our first home on March 28th, so five days away. It is a 1,941 square foot home in Fort Worth, Texas. We were approved for a 15-year FHA loan at a 5.5% fixed interest rate. The builder had the house listed at $143,990 and said they were discounting it to $137,990 because they are trying to meet their quotas and their year end is March 31st. Our realtor and his wife are both in the real estate business. He is a realtor and she is a broker, so they are getting a big commission off this deal with the builder. The realtor is going to pay off apartment lease ($710 per month and we have 3 months left), and pay two mortgage payments for us at $1,511 and some change. We both have fairly low credit scores (mine 534 and my husbands 575), but we got 100% financing. They are rolling our closing costs, appraisal fees, etc. into the loan. Does this sound like a good deal? Is there anything that sounds fishy?

A) You are getting a very good deal on the interest rate with the credit scores you have. All FHA and VA loans include Taxes and Insurance payment so you need not worry about that. With them paying off your apartment lease and the reduction in the asking price that is money in the bank for you or money you will or did not have to pay. The only thing that you are being charged for really is the two months of mortgage that could have been rolled into your loan. In order to find out you would have to look at and understand your HUD-1 closing document that was given to you by the escrow closing agent. If you do not understand it call your mortgage broker or go to the closing agent for an explanation. Nothing sounds fishy, apparently you were treated really good. I hope this has been of some use to you, good luck. "FIGHT ON"

What are the negotiating terms/drivers for a 40 year fixed rate home mortgage refinancing deal?

Q) I'm looking to obtain the best deal possible, so help me with the hidden quirks on this of type of transaction.

A) There shouldn't be any hidden quirks. If that's the product you think you want, it should be relatively simple to get a few good-faith estimates from a couple different banks and brokers. Getting them all on the same day will help you know who is lowest, regardless of daily rate changes. Compare rates and fees, and do make sure you have confidence in the person you choose, but this is the only way to get your best deal. Start shopping. Ask for referrals from people you know for loan officers they've used in the past.

Where is the best (only) bank to get the absolute best deal on a refinance mortgage?

Q) Does any such organization exist in this thievery invented by jews? It seems no matter what my credit score is I ALWAYS will get dinged on either a) closing costs b) rate or most often BOTH! Then, when you really play hardball with the banks they typically tell you they'll only do an ARM or something, anything less than a 30 year fixed rate mortgage. What gives? Where is the deal? I couldn't even find such a deal when they said rates were so good 3 years ago!.

A) I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

What is the deal with these really low mortgage interest deals that you see promoted all the time?

A) Many of these low interest deals only start that way. For instance, you could get an interest only deal for 10 years where you would not be paying towards principal the entire 10 years. As long as the property goes up in value, this can be a great way to go. Many adjustable mortgages start low for 2 or 3 years and then the real rate kicks in which will usually be a percentage over the highest prime rate found in the wall street journal. This rate must also fall between a ceiling and a floor. For example, in two years the new rate might be 5% over prime but in no event higher than 12% thereafter changing no more than 1.5% every six months. Many of these deals also require you to pay points or interest in advance. The best way I know to really get the true value on a proposed mortgage is to go by the federal truth in lending statement which you must sign as part of any real estate deal involving a mortgage. The lender is supposed to give you an estimated statement before closing as well as a HUD statement showing the closing costs. The interest rate that appears on the truth in lending statement is the true interest rate regardless of what the mortgage broker tells you. Most do not understand how it is calculated. This interest rate on this document takes into account how much interest you will likely pay over the course of entire loan including the closing points and origination fees you pay up front. I would go with the mortgage that had the lowest interest rate on this document. This rate is advertised as APR and is almost always higher. Ask what the APR is on the mortgage.

Better deal for a mortgage?

Q) Both loans are for 125,000 30 year fixed interest only 6.125% 30 year fixed 6% Which is better? Pro's and con's would be helpful. Expert opinions please. Save your time and mine with responses like"my ex brother-in-laws neighbor got a deal like this......" Thanks

A) Why do an interest only at a 1/8th higher rate the difference in rate is virtually the same as the principal portion in the fixed. Go fixed and get some equity buydown. You will as time goes on be buying down the principal and not playing into the banks hands. For a lower yet payment some lenders for no extra rate hit can go 40 year on the amortization. Heres the numbers 30 Fixed @ 6% $749.40 40 Fixed due in 30 @ 6% $ 687.80 30 Fixed @ 6.125% $759.50 Interest only $ 638.02 Lets say you make payments for 5 years and then sell, with an interest only loan you will still owe $125,000 and will have made $38,281.20 in payments that had no buydown performance. Essentially you are paying $7,656 and some change per year for the priveledge of both a higher interest rate and a fatter banker. If your market appreciates at say 7% per year your house will be worth about $175,319 in 60 months. Less typical resale costs of usually 9% ( title, escrow, and real estate brokerage @6% ) =$159,540 Less mortgage payoff = 34,540 As you can see there is a reason why interest only loans are being pushed by banks. True they can lower the payment a slight but they are a total windfall for the lender.

RE: What the deal with these mortgage companies?

Q) I have been shopping mortgage rates/cheapest monthly payments for a home purchase for about a month and half. As far as I can tell-they are all basically the same. The only question is how much interest you want to defer and for how long. All the loan packages basically work off the prime rate for that given day. None of these companies are going to lower the rate for you unless you pay down points. These different loan packages from these companies seems to me that they are (to use an analogy) basically selling you the same type of car only with a different paint job. Am I missing something here?

A) You are somewhat correct. The basically are all offering the same thing - but every now and then you will find one or two who are willing to give you a better rate than others. We just bought a new home and i went through this same thing. I have a very good credit score so I knew i could get the rock bottom of the apr's out there so I looked around. There were a few that seemed good - then i called a few more and found out that the ones I had previously thought were good weren't as good as I thought. they were offering me 5.75 with 1 point or 5.5 with 3 points. this was on a 277,000 loan so that's a lot of mula. I ended up going for Wells Fargo with NO POINTS 5.625 % That was a good one and very competetive. The other ones came from Lending tree - but I found Wells fargo on my own. Good luck

I would like to ask a mortgage underwriter why must homeowner deal with a mortgage broker or lender?

Q) I have spent 3-4 week trying to refinance my mortgage loan & each time the loan officer I'm working with promises me that he is the person that can get my loan done...but it really comes down to the underwriter decision. Why can I just work with an underwriter instead of a loan officer? It will say sooo much time!

A) Your loan agent is there to screen people out. If you are making it to the underwriter, you must look good enough on paper to pass the first hurdle. Interest rates are fluctuating and there are a lot of foreclosures starting to happen because people are leveraged to the hilt. They are trying to determine if you are worth the risk.