What is a Flexible Mortgage?
'Flexible mortgage' is a term that's used a lot, but what exactly does it mean? A flexible mortgage allows the borrower to make extra repayments when they have the extra money and even reduce or skip payments should the need arise. A flexible mortgage allows you to make extra payments to reduce the amount outstanding on your mortgage thereby reducing the interest you're paying or pay off your mortgage earlier than planned. Imagine being able to save money in mortgage interest, or borrowing enough money pay off your credit cards or personal loans, or buy a new car at a low rate of interest. That's exactly what flexible mortgages enable you to do. Flexible mortgages allow you to save money by cutting the length of your mortgage term.
You can also buy yourself more time when money is tight by reducing your monthly repayments or increase you mortgage if you need to borrow money. 'Flexible mortgages', also known as 'Australian mortgages' are fast becoming the most popular way of taking out a new mortgage. Flexible mortgages are designed for people who want the option to vary their mortgage payments to match changes in their cash flow. To varying degrees, they let you underpay, overpay, take payment holidays, pay off lump sums and borrow back overpayments. Flexible mortgages come in various guises but they mainly allow you to make extra lump sum payments, borrow back money, allow you to take repayment holidays and also allow you to make underpayments.
Some flexible mortgages will double up as a current account, where your salary is paid in monthly and so you are in effect paying off a huge overdraft. Unlike some traditional loans that still charge mortgage interest on an annual basis, fully flexible mortgages calculate interest daily, which means that any overpayments you make are immediately credited against your loan, thus reducing your interest costs. This gives you the flexibility to manage your mortgage payments to suit your cash flow needs as your circumstances change. A Flexible Mortgage allows you to repay capital early, take back some cash you have paid in and postpone payments. Some are run as substitutes for current and savings accounts, so all your money is working to minimise interest on the mortgage.
If you are looking for flexibility in the current mortgage market, there are two important facts to bear in mind. First, the majority of flexible mortgages tend to charge higher rates than those available on more conventional mortgage deals. Secondly, there is little difference between mortgages marketed as fully flexible and conventional mortgages which are offering an increasing number of flexible features. So unless you want to use the full range of features offered by a flexible mortgage, you may find the level of flexibility you are after on a conventional deal at a much better rate. Generally you can choose to have a variable or discounted rate or sometimes a combination a variable and fixed rate.
By choosing to take part of your mortgage at the fixed rate allows you the flexibility to make overpayments to the variable rate option during the fixed rate period without any penalties. A truly flexible mortgage should have all of the following options: Interest is calculated at least monthly, preferably daily. Overpayments are allowed penalty free. You can take payment holidays. You can make underpayments.
You can draw down any unused facility. You may freely reprint this article provided the author's biography remains intact:.
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.Adjustable Rate Mortgages Bring Higher Payments as Interest Rates Rise
Foxboro, MA (July 24, 2006) Easy Apps Mortgage, a mortgage broker based in Foxboro, Massachusetts with offices in Florida, is urging clients to convert their adjustable rate mortgages to fixed rate mortgages before their payments get out of hand.An Adjustable rate mortgage loan, also known as an ARM, has an interest rate linked to an economic index. The interest rate, and a person's payments, are periodically adjusted up or down as the index changes. ARMs accounted for about one third of mortgages granted in 2004 and 2005. According to a new study by the Federal Reserve economists, many Americans are unaware of the terms of their adjustable rate mortgage and drastically underestimate the amount their loan payments may increase. For example, the principle and interest on a 30 year, $200,000 loan at 5 percent would be about $1,073 per month.
At 8 percent, the same principle and interest payment jumps $400 to nearly $1,473 per month. According to Robert David, President of Easy Apps...
Adjustable Rate Mortgages Bring Higher Payments as Interest Rates Rise
Mortgages > Adjustable Rate Mortgages Bring Higher Payments as Interest Rates Rise
What is a Capped Mortgage?
A capped mortgage is a variable rate mortgage with a capped limit beyond which the rate paid will not exceed. Mortgages are available in a number of different interest rate options, one of which is the capped rate. A cap means that there will be a limit to any increase in the variable rates for a selected term. The mortgage rate charged on your account can not exceed this rate. However if the variable rate drops below your capped rate you will benefit, as your repayments will be calculated using the lower variable rate.
Capped mortgages enable you to place a limit on your monthly mortgage commitments and still benefit from falls in interest rates.Capped rate mortgages put a limit on the highest rate of interest you will have to pay on your mortgage over an agreed introductory period. This means you're protected to a certain extent if interest rates rise, and if they stay low you will still benefit from the lower interest rates. It's basically a combination of the fixed rate mortgage...
What is a Capped Mortgage?
Mortgages > What is a Capped Mortgage?
Florida's Mortgage Resource (FMR) launches new website (www.mortgages-refi.com)
Florida's Mortgage Resource (FMR) website (www.mortgages-refi.com) is dedicated not just to facilitating mortgages for consumers but also educating them in mortgages.Our user friendly site is not only easy to navigate but also contains informative, educational articles on such topics as; An ARM vs. A Fixed rate, Selecting the right loan, understanding your credit, why
http://www.mortgagesrefi.com/wfr_rates_change.html [mortgage rates] change, a http://www.mortgages-refi.com/wfr_document_checklist.html [mortgage document checklist], and many more.
There is also a complete glossary of http://www.mortgages-refi.com/wfr_glossary.html [mortgage terms] commonly...
Mortgages > Florida's Mortgage Resource (FMR) launches new website (www.mortgages-refi.com)
Getting Your Teenager Back To School With Clear Skin
Backpack? Check. Notebooks? Check. Ink-pens? Check. Clear Skin? Mommmm!If you are anything like three-fourths of the parents Harris Interactive for the American Counseling Association recently surveyed, you are actively involved in helping your teenager treat acne. While getting everything in order for back-to-school adds enough stress, the last thing your teen may want to deal with is a pimply face.
So how can you send Mr. or Miss "But I have to have it now!" off to school with no fuss...
Mortgages What is a Flexible Mortgage? Getting Your Teenager Back To School With Clear Skin
Mortgages > Getting Your Teenager Back To School With Clear Skin
Mortgages What is a Flexible Mortgage? seeds
Wisconsin News and Directory of Local Websites
WI Directory is a local Wisconsin Directory for news and information for Wisconsin residents and visitors.This site is dedicated to Wisconsin with links to the latest current news stories for Wisconsin. The site is designed to provide quick easy to navigate sections featuring Realty : A list of some 500 realtor websites organized by county / city to help finding property for sale or rent quick and easy to help narrow your search and save time and effort.Auto : We have listed over 450 auto dealers...
Mortgages
Mortgages > Wisconsin News and Directory of Local Websites
Mortgages What is a Flexible Mortgage? seeds
Windows Casino Player Wins a New Ferrari
(ContentDesk) September 8, 2005 -- Isabel Da Costa received Windows Casino's phone call in her office near her hometown in Portugal. The 29 year old office manager and mother of two first thought she didn't understand the nature of the call. "Sorry my English is not so good", please say again, replied Ms. Da Costa in flawless English.When she finally realized that she heard and understood the Windows Casino VIP player manager clearly, she was just simply ecstatic. She immediately told everyone...
Mortgages
Mortgages > Windows Casino Player Wins a New Ferrari
Should I Buy a Car at A Car Auction?
Should I Buy a Car at A Car Auction?Car/Auto Auctions have been around for years and dealers get a lot of stock from auctions. But for the average person buying a car from an auction is not so simple.Yes, you can get a cheaper car, but you the reason it is cheaper is that you are not getting all the guarantees. Basically, you bid on it. You own it.If you are a conservative person without much experience in motor vehicles, I would recommend that you do not just go out and buy a car from an auction.However,...
Mortgages
Mortgages > Should I Buy a Car at A Car Auction?