Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Types of Mortgages
Here is a useful guide to the different types of mortgages that are available.
A mortgage is a loan you take out to buy property. You can get a mortgage direct from the lender such as banks, building societies and specialist mortgage lenders.
Your mortgage is probably the biggest loan you will ever take out, so it is important to get a mortgage that suits you. This will depend on your personal circumstances and your plans for the future. Many mortgages have hidden drawbacks. Get independent advice before you choose a mortgage.
There are two basic types of mortgage, interest-only and repayment. The option you choose is determined by the way you want to repay your loan. There is no hard and fast rule about which is better. It is a matter of individual preference.
An interest-only mortgage allows you to repay just the interest on your loan, but you have to take out an investment that will mature to pay off the outstanding amount. If your investment performs well then you may have some money left over after paying back your mortgage. But there is also a risk that the investment will under-perform leaving you to make up any shortfall.
A repayment mortgage requires you to pay back both interest and loan capital, so at the end of your mortgage period there is no money owing. Early on you pay mostly interest, so it might seem that the outstanding balance never gets lower. But later on you will repay more capital, and the total will decrease more quickly.
Here is a selection of the different mortgages that are available:
This is where lenders offer a reduction on the standard variable rate for a fixed period. This type of mortgage is good for someone wanting to make savings in the early days of owning a property. But be aware that the rate can change as it is fixed to the standard variable rate.
With a fixed rate, your payments stay the same no matter what happens to the base rate. This is a sensible option for people who want to know exactly what they will be paying for a certain period. There is always a risk that, if interest rates fall, you might be left paying an uncompetitive rate. On the other hand, a rise in rates will leave you paying less than people on other schemes.
This type of mortgage follows the Bank of England base rate. It will usually stay a set margin above the base rate for the duration of the loan. They are suitable for people who think base rates might be on a downward trend.
These schemes are similar to fixed rate mortgages, but give you a get-out if rates fall sharply. They allow you to pay either the capped rate or the lender's standard variable rate, whichever is lower. They can initially be slightly more expensive than other deals, but if rates fall they can pay off.
They will link your current account and your mortgage. You pay your salary into an account and your mortgage payment is taken out as per usual. But any extra cash in the account is also used to offset against the amount you owe on the mortgage, so you pay less interest.
Another way of managing your mortgage is through a flexible arrangement. This allows you to pay more money off your mortgage when you have it, or take a payment holiday if things are a bit tight. Some lenders will allow you to overpay each month and withdraw the extra cash if you need it later. And if you have the money, you can pay off your mortgage early. Any money you can pay off early will save you interest payments.
You may freely reprint this article provided the author's biography remains intact:
About The Author
MORE RESOURCES updated Thu. August / 22 / 2019
Refinancing now can save 9.7 million borrowers $267 a month. Here's how. The Mortgage Reports
Lower mortgage rates mean refinancing can save 20 million borrowers an average of $276 a month according to the latest research.
Millennials drive mortgage refinance boom, and lenders are scrambling CNBC
Mortgage interest rates have been falling since May, especially sharply this month, so borrowers, especially millennials, are rushing to refinance. Refinance ...
Falling rates touch off a boom in mortgage refinancing STLtoday.com
The global economy's pain has become the Jones family's gain. Worries about trade tensions and slower growth have caused long-term bond yields to plummet ...
Refinance mortgage rate slides for Thursday Bankrate.com
Refinance rates were mixed, but one key rate ticked downward. If you're shopping for a home loan, see what that means for you.
Refinance rates ease for Friday Bankrate.com
Several benchmark refinance rates slid lower today. If you're shopping for a home loan, see how your payments might be affected.
Is now the time to refinance? Las Cruces Sun-News
Since there is no “one size fits all” reason why one may desire to refinance, the first order of business is to identify the purpose of the refi.
The inverted yield curve is doing something weird to mortgage rates CNBC
It is a rare scenario where long-term interest rates suddenly fall below short-term interest rates.
Mortgage rates today, August 19, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Mortgage rates today, August 19, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Average mortgage rates inched down on Friday, defying our prediction. Mortgage News Daily explained it best, talking about the “weirdness” that has ...
Mortgage-Refi Fever Sweeps U.S., Forcing Brokers to Scramble Bloomberg
Suddenly, mortgage broker Mark Livingstone is working weekends and spending his meager free time reading resumes because he needs help handling the ...
Mortgage rates are at a 3-year low—here are 3 questions to ask before you refinance CNBC
Mortgages rates hit a three-year low on Friday, August 2, when the average rate on a 30-year fixed mortgage hit 3.70%, the lowest they've been since November ...
When Should You Refinance a Home? Forbes
A home is the biggest purchase most people ever make. When buying a home, we are all impacted enormously by a factor largely outside our control: interest ...
Mortgage rates today, August 20, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Mortgage rates today, August 20, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Average mortgage rates rose yesterday, as we predicted. But they increased only by the smallest measurable amount. And the rise should have been much ...
Fannie Mae predicts surge in mortgage refinancing following Fed rate cut Yahoo Finance
It is becoming more popular for Americans to refinance their mortgages, even as fewer Americans take out mortgages because of a housing crisis.
Millennials move to refinance as rates approach three-year lows | The Mortgage Reports
With rates at three-year lows, Millennials are finally hopping on the refinance bandwagon. Refis accounted for 14 percent of all Millennial loans in June.
You could save hundreds of dollars per month by refinancing your home—here's how to do it CNBC
With mortgage rates falling, borrowers are primed to save hundreds per month by refinancing. Here are six steps to follow to successfully refinance your home.
Refinance mortgage rate falls for Thursday Bankrate.com
Refinance rates were mixed, but one key rate trended down. If you're shopping for a home loan, see what that means for you.
Key questions to ask before you refinance your mortgage Bankrate.com
While refinancing your home mortgage might sound like a good idea in theory, especially with interest rates falling, it may not always be possible for every ...
Opinion Ginnie Mae and the politics of prepayments National Mortgage News
Wide short-term swings in interest rates — and loan prepayments — that we've all witnessed have serious secondary effects on consumers, lenders, investors ...
Refinance mortgage rates mixed for Wednesday Bankrate.com
Refinance rates were mixed today. See what that means for your chances of getting a better mortgage rate.
MONEY MATTERS: Is refinancing my mortgage a good idea? The Bakersfield Californian
Mortgage refinancing is trending right now, but how do you know if it's right for you? Thanks to low interest rates, refinancing your mortgage can save you money ...
Refinance mortgage rate increases for Monday Bankrate.com
Refinance rates were mixed, but one key rate climbed higher. See what that means for you if you're in the market for a mortgage.
As mortgage rates tumble, rush to refinance for savings is on Star Tribune
There is a silver lining to the recent economic turbulence: Mortgage rates have tumbled in recent weeks, triggering a rush to refinance and a race to the closing ...
Nearly 10 million borrowers could lower their mortgage rate by 0.75% by refinancing right now - HousingWire
Nearly 10 million borrowers could lower their mortgage rate by 0.75% by refinancing right now HousingWire
Just three days ago, data from Black Knight showed that 8.2 million borrowers could save big on their mortgages thanks to the recent decline in mortgage ...
Mortgage Rates Pop Higher Mortgage News Daily
Mortgage rates moved higher today, and it had nothing to do with any of the day's events or news headlines. Quite simply put, the bond market (which dictates ...
Mortgage rates fall, reaching nearly three-year low The Washington Post
Mortgage rates dipped slightly to a nearly three-year low because of concern about a potential global economic slowdown and some weak home sale news.
Should I refinance for 0.25% lower rate? Or wait for 1% or more? | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Should I refinance for 0.25% lower rate? Or wait for 1% or more? | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
How much do refinance rates need to drop before I refinance? Is the rule 1%, or should I refinance for just a 0.25% lower rate?
Is Refinancing a Mortgage Expensive? WTOP
Refinancing a mortgage could result in a lower monthly payment or a reduction in your interest rate. That could save you money, but is the cost to refinance…
Mortgage refinance applications rise as trade issues cause rate drop National Mortgage News
The economic tensions between the U.S. and China drove interest rates down last week, leading to a surge in refinance applications, according to the Mortgage ...
Refinance rates slide for Monday Bankrate.com
Multiple closely watched refinance rates fell today. See what that means for your chances of scoring a killer refi rate.
Give Yourself A Pay Raise With A Cash-Out Refinance Yahoo Finance
Mortgage interest rates are at historic lows. A lower interest rate means a lower monthly mortgage payment, resulting in you being able to buy more house for ...
Refinance rates increase for Tuesday Bankrate.com
Several benchmark refinance rates moved higher today. If you're shopping for a home loan, see what that means for you.
How to tap into today's VA refinance rates with almost no paperwork | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
How to tap into today's VA refinance rates with almost no paperwork | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
VA refinance rates have fallen significantly since late last year. For many VA borrowers, this is the time to consider the savings which might be available with ...
My second wife wants me to put her name on my home — and refinance so we can buy another house together - MarketWatch
My second wife wants me to put her name on my home — and refinance so we can buy another house together MarketWatch
'Is it fair for her to ask to be put on the first house even though she didn't contribute any money to it?'
U.S. Mortgage Debt Hits Record, Eclipsing 2008 Peak The Wall Street Journal
WASHINGTON—U.S. mortgage debt reached a record in the second quarter, exceeding its 2008 peak as the financial crisis unfolded. Mortgage balances rose ...
NuMark Credit Union to Host Mortgage Refinance Seminars Patch.com
Your home is your biggest investment. The right mortgage can help you build equity and pay for things that you need for your family. Life changes quickly, and ...
Mortgage Market Reopens to Risky Borrowers The Wall Street Journal
The risky mortgage is making a comeback. More than a decade after home loans triggered the worst financial crisis in a generation, the strict lending ...
Mortgage Lenders See Surge in Refinancing businessjournaldaily.com
YOUNGSTOWN, Ohio -- With mortgage rates sitting at their lowest in the last few years, lenders say now is the time to refinance – and customers are heeding ...
With mortgage rates this low, is late-2019 a good time to buy a house? | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
With mortgage rates this low, is late-2019 a good time to buy a house? | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Mortgage interest rates have been dropping lately. So have home prices. There are real estate deals waiting to be claimed. So that begs the question: Is the rest ...
Low rates lead to a record wave of Danish mortgage refinancing Nasdaq
July 29- Danish homeowners have taken advantage of ultra-low interest rates to pay down mortgages worth 137 billion Danish crowns since May,.
Mortgage demand falls again, despite lower interest rates CNBC
After rising the previous week, interest rates fell back again last week, but consumers were not enthused.
HUD slashes FHA cash-out refinance LTV limit. What you should do now | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
HUD slashes FHA cash-out refinance LTV limit. What you should do now | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
FHA cash-out refinancing rules will change starting September 1, 2019. The new rule will limit cash-out refinances to 80% of a property's fair market value.
Mortgage Refinancing Picking Up Since Fed Rate Cut MarketReview.com
The Fed cutting the overnight by a quarter point does entice people to do more mortgage financing. This does stimulate the economy somewhat, but also ...
U.S. home refinancing activity hits three-year high: MBA Investing.com
NEW YORK (Reuters) - U.S. homeowners filed the most applications to refinance their current mortgages in over three years as 30-year borrowing costs slipped ...
Refinance rates decline for Thursday Bankrate.com
Several closely watched refinance rates dropped today. The national averages for 30-year fixed and 15-year fixed refinances both decreased. The average rate ...
Now Is A Good Time To Consider Refinancing WCCO | CBS Minnesota
MINNEAPOLIS (WCCO) — An estimated 10.2 million Americans can benefit from refinancing their mortgage, according to professionals at First Class Mortgage ...
TRANSACTIONS: Meridian places $12M mortgage on 7th Ave. multifamily Real Estate Weekly
Greystone, a commercial real estate lending, investment, and advisory company, has provided a $6.5 million Freddie Mac Small Balance Loan (SBL) to ...
Loan Closing Rates Hit Record High Mortgage News Daily
There was a dramatic drop in the average note rate for loans originated in July and the refi share of those originations rose significantly. The July Origination ...
Mortgage rates move lower for Wednesday Bankrate.com
Multiple closely watched mortgage rates ticked downward today. If you haven't locked yet, see how your future mortgage payments could be affected.
Run, don't walk, to refinance your home now Half Moon Bay Review
Well, the last few weeks have been interesting, to say the least. The Federal Reserve finally lowered interest rates, but not as much as Wall Street wanted.
I'm refinancing my mortgage. Do I need to hire an attorney? NJ.com
Your comfort level with the lender should be the deciding factor.
Mortgage rates today, July 24, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Mortgage rates today, July 24, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Average mortgage rates provided another pleasant surprise yesterday when they held steady instead of rising. The bond yields they typically shadow did rise.
Mortgage rates move upward for Friday Bankrate.com
Multiple closely watched mortgage rates moved higher today. If you're in the market for a mortgage, see how your payments might be affected.
Key mortgage rates mixed for Wednesday Bankrate.com
Mortgage rates were mixed today. If you haven't locked yet, see how your payments might be affected.
Pre-owned home sales climb 2.5% Arkansas Online
U.S. sales of previously owned homes increased 2.5% in July, a sign that lower mortgage rates have produced a spurt of homebuying.
CMG Financial Texas Branches Close Out $100 Million Month PRNewswire
AUSTIN, Texas, Aug. 22, 2019 /PRNewswire/ -- CMG Financial, a privately-held mortgage banking firm headquartered in San Ramon, Calif., commends its ...
Surprisingly, lots of 2018 homebuyers could save money by refinancing now Charleston Post Courier
Economists thought mortgage interest rates would rise to 5.5 percent this year, but instead they've dropped so low that recent homebuyers could save money by ...
Santander Bank cuts back on its mortgage business The Philadelphia Inquirer
Santander Bank NA, the U.S. arm of Spain-based multinational lender Banco Santander, will lay off 66 staff at its Villanova mortgage offices this fall, the bank ...
Nationwide Mortgage Bankers lands on Inc.'s Fastest Growing Companies of 2019 Yahoo Finance
MELVILLE, N.Y., Aug. 22, 2019 /PRNewswire/ -- Independent mortgage lender Nationwide Mortgage Bankers, Inc. (Nmbnow.com) has made it onto Inc.'s list of ...
Mortgage Applications Dip as Lower Rates Fail to Stimulate Purchases Appraisal Buzz
After increasing the previous two weeks, mortgage application volume dipped 0.9% on an adjusted basis during the week ended Aug. 16, according to the ...
Fuel for the Next Mortgage Bust? WOLF STREET
Cash-out refi hype is back full-blast. And for the first time since early 2006, people are doing it in large numbers. This is the transcript from my podcast last ...
Near-Record Low Rates Trigger Refi Wave Among US Homeowners pymnts.com
U.S. mortgage refinancing is on the uptick as fears about fluctuating global markets cause a drop in interest rates, the Financial Times reported Sunday (Aug.
[Pulse] With mortgage rates and bond yields low, is it time to retain mortgage servicing? - HousingWire
[Pulse] With mortgage rates and bond yields low, is it time to retain mortgage servicing? HousingWire
I was talking to a mortgage banker recently about servicing and was told that, while they had considered doing so, they were not retaining servicing.
Mortgage rates today, July 26, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Mortgage rates today, July 26, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Average mortgage rates increased yesterday, as we predicted. It wasn't a huge rise, but it was enough to take them back to last Friday's levels. They're now ...
Low mortgage rates boost homebuilding stocks despite recession anxiety The Real Deal
Signs may be pointing to a potential recession, but low mortgage rates have boosted homebuilding shares, which are nearing their highest levels of the year.
Consider a Mortgage Refinance, Even If You Bought Recently NerdWallet
Refinancing a mortgage might be a good idea, even for homeowners who bought a home in 2018. Mortgage rates have fallen so far that millions of homeowners ...
The Time Is Right to De-Risk Your Retirement Portfolio Morningstar.com
For pre-retirees and retirees, the risk of standing pat with a too-heavy portfolio mix outweighs the downside of exiting stocks too early.
Mortgage rates today, July 25, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Mortgage rates today, July 25, 2019, plus lock recommendations | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Average mortgage rates held steady again yesterday. That's nothing to complain about. It means they remain in their ultralow range. But the difficulty of ...
When is it Time to Refinance? | Nationslending Sahuarita Sun
With mortgage refinance rates decreasing again, is this a good time to refinance your home loan? The best answer to that question is - it depends.
Good time to refinance your mortgage? Fox Business
The 30-year fixed mortgage rate recently reached its lowest levels since September 2017.
Why to consider a mortgage refinance, even if you just bought recently cleveland.com
Mortgage rates have fallen so much lately that millions of homeowners might benefit by refinancing — even if they bought a home in 2018. Here's why, plus tips ...
'Now Is The Time To Refinance': Low Mortgage Rates Cause Surge In Refinancing Forbes
Last week's massive dip in mortgage rates apparently pushed homeowners into action. According to new data from the Mortgage Bankers Association, ...
Mortgage rates haven’t been this low since 2016 — here’s how to decide whether to refinance your home loan - MarketWatch
Mortgage rates haven’t been this low since 2016 — here’s how to decide whether to refinance your home loan MarketWatch
More people are pursuing refinances as mortgage rates have dropped.
Congratulations You Are Approved! Jewish Link of New Jersey
Nothing makes me more excited and more nervous, then issuing a “pre-approval” certification to my clients. What seems to be an instantaneous output at many ...
I'm buying a car for my son. How should I pay for it? NJ.com
Q. I'm buying a $10,000 car for my son to use for his senior year of high school. I could take the money from a HELOC or I could take from my emergency fund, ...
As mortgage rates plunge, should you refinance? Fox Business
Nearly 6 million people can now cut their mortgage payments with refinancing.
Mortgage rates are falling—here's how to tell if you could save money by refinancing CNBC
As mortgage interest rates drop, homeowners could save hundreds per month by refinancing. However, it's not a smart financial decision for everyone.
Nearly 6 million people can now cut their mortgage payments with refinancing Bankrate.com
The recent drop in rates means that 5.9 million people can potentially save money by refinancing their existing home loans and securing a lower rate -- two ...
As rates drop, mortgage refinancing surges but home purchase loans remain tepid USA TODAY
Homeowners scramble to refinance mortgages as rates hit the lowest level in 17 months. But mortgage applications for home purchase rose just 0.5%.
5 Signs It's Time To Refinance Your Mortgage Forbes
You've probably heard that refinancing your mortgage can save you money. While that's true in many cases, refinancing needs be done at the right time in order ...
Consumers agree: Buy now before home prices rise | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Consumers agree: Buy now before home prices rise | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
It can be expensive to buy a home nowadays. Fortunately, rates remain low. Plus, the national economy is strong, and employment is robust. Still, many buyers ...
How to Refinance a Mortgage and When to Do It TheStreet.com
Your mortgage can cost a lot of money over time. Here's how it might just cost a little less....BAC.
Mortgage refinancing spree becomes a race against the clock Bankrate.com
Some 2.43 million homeowners can reduce their mortgage interest rate by refinancing, according to a recent mortgage report by Black Knight, a mortgage data ...
Should you refinance your mortgage now? Clark.com - Clark Howard
Money expert Clark Howard has a simple rule for when to refinance your mortgage. See if it applies to you and how you can hit a "grand slam" if you do it.
Will mortgage rates drop even more? Should I wait to refinance? | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Will mortgage rates drop even more? Should I wait to refinance? | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
Mortgage rates are near historic lows, but maybe you've heard that nagging voice, the one which says “wait just a little longer. Rates can drop lower.
Mortgage refinance boom goes bust as rates shift higher CNBC
A turnaround in interest rates turned borrowers back on their heels last week, deflating a quick boom in refinance demand.
If You Ever Want To Retire, Here's The Best Way To Refinance Your Mortgage Forbes
The usual reasons to refinance are to reduce the monthly payment or to raise cash. The third option, which is under-appreciated, is to shorten the period of ...
4 irresistible perks of a VA mortgage refinance Bankrate.com
Interest rates are near historic lows, and one particular VA loan refinance option that is easy to qualify for can enable homeowners to save thousands on their ...
These are the best (and worst) reasons to refinance your mortgage Bankrate.com
Whether you've owned your home for a short time or you've had your mortgage a bit longer, a mortgage refinance involves careful consideration. After all, you'll ...
Refinance mortgage rates: 10 steps to get the best deal | Mortgage Rates, Mortgage News and Strategy - The Mortgage Reports
Refinance mortgage rates: 10 steps to get the best deal | Mortgage Rates, Mortgage News and Strategy The Mortgage Reports
How do you get the best refinance mortgage rates? Plan ahead and have a strategy. Here's how to do it in today's low-rate mortgage marketplace.
How to get the best deal on your home mortgage refinance cleveland.com
Mortgage rates may be rising but there's still room to refinance your home loan. You might have heard much said about the constant rise of interest rates over the ...
What to consider before determining whether to refinance your mortgage Washington Post
REAL ESTATE MATTERS | For a home-run refinance, try to find a deal that helps you do these four things: lower your interest rate, shorten your loan term, lower ...
Mortgage Rates Drop Again -- Homeowners Can Save Hundreds Per Month By Refinancing Forbes
Mortgage rates are continuing their downward spiral. According to Freddie Mac, the average rate on a 30-year fixed-rate loan has dropped to just 3.82%—down ...
Refinance rates decline for Friday Bankrate.com
Several closely watched refinance rates decreased today. If you're shopping for a mortgage, see what that means for you.
Refinance mortgage rate eases for Thursday Bankrate.com
Refinance rates were mixed, but one key rate slid lower. If you're shopping for a mortgage, see how your payments might be affected.
Refinance mortgage rate moves up for Thursday Bankrate.com
Refinance rates were mixed, but one key rate cruised higher. See what that means for your refinance.
Refinance mortgage rates mixed for Thursday Bankrate.com
Refinance rates were mixed today. See what that means for you if you're in the market for a mortgage.
Refinance mortgage rate retreats for Wednesday Bankrate.com
Refinance rates were mixed, but one key rate fell. The nationwide average for a 30-year fixed-rate refinance receded, but the average rate on a 15-year fixed ...
Nearly 6 Million People Can Now Cut Their Mortgage Payments With Refinancing | RisMedia.com
With interest on the low side, there is a potential to refinance and save.