|
|
|
|
|
|
|
Types of Mortgage Interest Rate
Here is a useful guide to the different types of Mortgage Interest Rates that are available. Mortgage Lenders offer all kinds of different deals when it comes to the interest you pay on your mortgage. Sometimes you may have a choice, sometimes you may not.
Your mortgage is probably the biggest loan you will ever take out, so it is important to get a mortgage with an interest rate that suits you. This will depend on various factors like the type of mortgage selected, your personal circumstances and your plans for the future.
Get independent financial advice before you choose a mortgage. It's an area where you'll probably find expert financial advice helpful.
Capped rate
This is another special limited term arrangement where, although your payments can go up and down, they are guaranteed not to rise above a certain level. So you will benefit from interest rate falls during the capped rate period. When the arrangement finishes, you will then pay the lender's standard variable rate.
Discounted rate
Once again the interest rate will vary, but you will pay a rate less than the lender's standard variable rate. As you might expect, such beneficial treatment can't last forever and after a limited period of time, you will pay the lender's standard variable rate.
Fixed rate
A mortgage where your repayments are guaranteed to stay the same for a limited period of time, usually no less than one year and no more than five years. At the end of the period, you will pay the lender's standard variable rate.
Standard variable rate
A mortgage where the interest you pay goes up and down, usually in line with the Bank of England's base rate.
Standard variable rate with cash back
Same as above with one difference: the lender will give you a sum of money (normally a percentage of the amount borrowed) as an incentive ? the 'cash back'? for taking out the mortgage. This can be especially attractive if you need money to make any improvements to your property.
Tracker Rate
Here again, your monthly repayment will vary but only by a certain amount. Your interest rate tracks an index such as the Bank of England's base rate for a pre defined period of time. If, for example, it were guaranteed that you would never pay more than 1% over base rate, this is how it would work. If the base rate were 3%, your interest rate would be 4%; if base rate increased to 3.5%, you would pay 4.5%. Conversely, if the base rate were to fall to 2.25%, you would pay 3.25%.
You may freely reprint this article provided the author's biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Best Syndication
Honolulu Advertiser, HI - 16 hours ago
By Andrew Gomes Historically low interest rates recently have sparked a mortgage refinance boom in Hawai'i that is helping homeowners and lenders during ...
The Truth About Mortgage Refinancing Revealed By Connecticut ... SBWire (press release)
Is It Time To Refinance Your Mortgage? Forbes
Low Mortgage Rates Bring Refinancing Boom WHO-TV
San Jose Mercury News - Washington Timesall 67 news articles
Ecommerce Journal
New York Times, United States - 1 hour ago
Of course, buying a home is a more lengthy process than simply calling up a mortgage broker to refinance, and activity typically slows during the holiday ...
US Banks Offer Mortgages Below 5% After Fed Action Bloomberg
Mortgage rates fall to record low again Forbes
MORTGAGES: Tenth Straight Decline Sends 30-Year Mortgage To New Low CNNMoney.com
MarketWatch - Bloombergall 653 news articles
Washington Post, United States - 22 minutes ago
Mortgage rates immediately plummeted well below 6 percent, breaking a psychological barrier. Refinance applications soared each week since, ...
CEP News
Reuters - Jan 7, 2009
The jump in applications during December may have been driven by homeowners already "on the fence" and prepared to refinance on a drop in mortgage rates, ...
Mortgage applications down in latest survey Forbes
Mortgage applications down, home-equity credit delinquencies up Los Angeles Times
Low rates get loans moving again Long Island Business News
MarketWatch - WQOW TV News 18all 68 news articles
Boston Globe, United States - 6 hours ago
When I wrote about the hidden cost of the additional years of mortgage payments, several people wrote in with very good reasons to refinance anyway. ...
AFP
Wall Street Journal - 1 hour ago
"Despite efforts by Congress to address this issue, not enough lenders have come to the table to help borrowers with bad mortgages refinance into new, ...
New Mortgage Bankruptcy Bill Does Not Address Real Problem Seeking Alpha
Citigroup reaches agreement with key senators on mortgage ... Minneapolis Star Tribune
all 478 news articles
Plano Star Courier, TX - 6 hours ago
“Quite a few people have remortgaged,” said Craig Jarrell, loan officer with Pulaski Mortgage. “Most people who refinance are new homeowners as recent as ...
Boston Herald, United States - Jan 1, 2009
If I refinance the mortgage on my current house, will I hurt my chances for getting a loan for a new place later on? A: No. Refinancing a loan shouldn’t ...
Waco banks seeing a boom in mortgage refinance applications Waco Tribune Herald
all 5 news articles
Central Valley Business Times, CA - 18 hours ago
“So many folks have found themselves underwater in their mortgage … they can’t refinance,” says Mr. Cardoza. Often those who have lost their investments in ...
Cardoza submits plan to refinance mortgages Merced Sun-Star
Congressman Cardoza Introduces Housing Legislation ABC30.com
Cardoza sponsors bill to reduce mortgage payments, stabilize ... Central Valley Business Times
all 4 news articles
Meadow Free Press, ID - 15 hours ago
Many acquire a refinance mortgage to pay for their child’s college education. Whatever the reason, one must pay off the loan or lose their homes and their ...
Do You REALLY Need a Home Equity Loan?
Your equity is the amount your home is worth, on the market, minus the amount you owe to your mortgage broker. For example, if your property is... Read More
Before You Buy
Before you start looking for a home, figure out what you can realistically afford to pay per month. Check out the market in the area you want... Read More
Refinance Online
If you want a low interest, low payment mortgage refinance, refinancing online could be the answer. There are many mortgage companies who specialize in mortgage refinancing online.... Read More
How to Find a Direct Homeowner Loan
If you've been thinking about applying for a direct homeowner loan, you might want to take a little bit of time to make sure that you understand... Read More
Understanding UK Bridging Finance
Bridging finance, also referred to as "bridge loans" and "bridging loans", have nothing at all to do with re-constructing the London Bridge. Bridging finance is typically a... Read More
Homeowner Loans - Whats Available?
It isn't difficult to get a homeowner loan if you own your own home, hundreds of UK lenders will lend up to 95% Loan to Value of... Read More
Reverse Mortgages: Information You Need to Know
Reverse Mortgages are exploding in popularity and as the baby boomers reach age 62 and beyond they will become eligible to cash in on their home equity... Read More
The Power of a Home Equity Loan to Pay Down Debt
Households across the country are finding themselves in a similar situation. They lack the financial funds to make the necessary changes to their home and need to... Read More
Mortgage-Refinance Treachery: Avoid Mortgage Bankers and Brokers Biggest Trick -- The Sales Pitch
What the average homeowner or home buyer fails to realize is that bankers, loan officers, mortgage brokers, or whatever your lenders call themselves, are salesmen. Certainly, if... Read More
Securing a Cheap Home Improvement Loan
Finding a cheap home improvement loan can be a challenge at times, but the extra work involved can pay off by saving you money in the long... Read More
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... Read More
Mortgage Calculator ? How to Calculate Your Monthly Mortgage Payment
Just starting to shop for a new home? Do you want to know how to figure what your monthly payment would be based on a certain priced... Read More
Bad Credit Mortgage Lenders - Things You Should Know About Subprime Lenders
Interest rates and fees vary between subprime lenders just like regular mortgage lenders. Just because you have bad credit, that doesn't mean you should accept the first... Read More
Buying a Home With Bad Credit - Get Approved With a Recent Bankruptcy or Foreclosure
A few years ago, if you had a bankruptcy or a foreclosure on your credit report, you could forget about trying to get a mortgage loan. If... Read More
Home Loans: To Substantiate Financial Possibilities On Your Land
Availability of Home loans is in full bloom. They are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners. They are offered by almost every loan... Read More
Refinance Benefits - Refinancing Could Save You Money
The most common reason most people refinance is to save money, but many people refinance for various other reasons.1. Refinancing to Lower Your Monthly Payment for an... Read More
Home Equity Loan ? Beware of Equity Stripping Scam
The market for mortgage refinancing has been brisk during the last few years. The boom in business can be attributed to interest rates that have been at... Read More
A Mortgage Loan For Homes
Everybody wants to own a house because it is something that portrays your success in life. Some people make some ways on how to own one by... Read More
What is a Home Equity Loan?
A home equity loan is a loan that is guaranteed by your home. Are you in urgent need for cash and want to get the same without... Read More
What is a Self-Certification Mortgage?
A Self-Certification mortgage is a mortgage designed for people who are unable to provide proof of income. This type of mortgage was originally designed for the self... Read More
A Guide to UK Buy to Let Mortgages
Essentially there is little difference between the process that one follows for a buy to let mortgage in the UK than there is for any other type... Read More
Securing a US Commercial Mortgage
What's the most efficient way to secure a US Commercial Mortgage? Work with a mortgage broker who specializes in this area. If you've ever applied for a... Read More
The Top 5 Things You Must Know Before Applying for a Mortgage
You've been thinking about buying your own home for quite a long time, and now you're ready to take the plunge. You've been saving money for a... Read More
Remortgages Guide
Outlined below is a useful remortgages guide. Remortgaging has become increasingly popular due to the relatively simple and flexible process.A remortgage is exactly as the name suggests,... Read More
Mortgage Debt Elimination
The prospect of mortgage debt elimination is something that many Americans are dealing with today. If you are concerned about your current debt situation, constantly trying to... Read More
How to Save Money by Using an Independent Commercial Mortgage Broker
Being a creature of habit can cost you plenty when it comes to applying for a commercial mortgage instead of going through an independent commercial mortgage broker.... Read More
Refinance Benefits - Refinancing Could Save You Money
The most common reason most people refinance is to save money, but many people refinance for various other reasons.1. Refinancing to Lower Your Monthly Payment for an... Read More
Are You Ready for a Home Mortgage Loan?
Buying a Home and committing to a Mortgage can be very scary! A home mortgage loan is the largest debt that most Americans will take on in... Read More
Home Loans: What You Should Know!
Finding home loans can be a daunting task, whether you're a first time home buyer or an existing homeowner. The good news is that there are more... Read More
Types of Financing for Your Mortgage
When financing a home purchase, the kind of mortgage you choose determines your monthly payment and the interest rate you get on your loan. There are four... Read More
How to Secure the Best Mortgage Deal and Save Yourself Thousands in Interest
When you consider that the average home owner will pay out far more in interest over the lifetime of their mortgage than their home actually cost in... Read More
Refinance Online
If you want a low interest, low payment mortgage refinance, refinancing online could be the answer. There are many mortgage companies who specialize in mortgage refinancing online.... Read More
Mortgage: Rehabilitation Of Financial Helplessness
The term 'mortgage' is assumed really controversial by people when they are contemplating the idea of taking a loan. It is definitely a very simple procedure which... Read More
What is an Interest Only Mortgage?
An Interest Only Mortgage is one where the repayments are made up entirely of the interest on the loan. When the mortgage term is complete, the capital... Read More
Adjustable Rate Mortgage - How They Work?
How does an ARM work.The borrowers interest rate is determined initially by the cost of money and the time the loan is made. Once the rate has... Read More
Home Loans: To Substantiate Financial Possibilities On Your Land
Availability of Home loans is in full bloom. They are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners. They are offered by almost every loan... Read More
Home Mortgage Refinancing - Things to Consider When Looking to Get Cash Out on a Refinance
When you refinance your home mortgage, lenders often tempt you with the option of cashing out part of your home's equity. Cash at a comparably low interest... Read More
Low Home Mortgage Interest Rate - Finding the Best Mortgage Rate
Interest rates are at an all time low, making now the perfect time to purchase a new home or refinance your existing mortgage. The interest rate you... Read More
Applying Online For A Home Loan Can Give You an Instant Approval
"Instant Approval For Home Loans" is a common refrain for online mortgage lenders, but sometimes instant is longer than you think. During regular business hours with a... Read More
5 Things In Selecting The Best Mortgage - You Should Know
Your goal is not only to find the best rates and programs, by searching through a huge number of lenders products, and save yourself thousands of dollars... Read More
What is a Self-Certification Mortgage?
A Self-Certification mortgage is a mortgage designed for people who are unable to provide proof of income. This type of mortgage was originally designed for the self... Read More
10 Things to Look for in a Home-Equity Line of Credit
If you are a homeowner, you've probably received offers to apply for a home equity line of credit (HELOC). Handled with care, home equity credit lines can... Read More
Subprime Mortgage Lenders - Helpful Tips When Getting a Subprime Mortgage Loan
If you have bad credit history, no down payment or difficult to prove income and are looking to get approved for a home mortgage loan, you will... Read More
Revive Mortgage Tenure With Extend Loan Term Remortgage
You are comfortably wedged in a mortgage deal, paying the standard rate of interests year after year. You are most in all probability paying more than required... Read More
Are Biweekly Mortgages Really Worthwhile?
You may have heard people, especially mortgage lenders, extolling the virtues of biweekly payments, saying that you can save thousands of dollars and take 5-7 years off... Read More
Tips for Getting Home Loans from the Right Lenders
Getting home loans is possibly the biggest step in an adult's life. It's up there with having kids, landing that big job, starting your own business. Actually,... Read More
Buying A Home With No Money Down or Bad Credit - PMI Can Make It Easier
Private mortgage insurance is an excellent method for homebuyers who have trouble saving money, are short on money, or have bad credit, to get into a home... Read More
New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process
Imagine this: you've found the perfect house, and feel lucky because the interest rates happen to be at an all time low. So you submit your mortgage... Read More
Mortgage Debt Elimination in 5 to 7 years!
Mortgage Debt Elimination shows that most home loan debts will be secured. Secured debts usually are tied to an asset, like your house for a mortgage. If... Read More
Should You Get a Home Inspection?
It's very important, and in my opinion, mandatory to have a home inspection done before you close on a house. The inspection helps with giving you an... Read More
Seller Financing
Although any loan used for buying real estate is strictly called a purchase money mortgage, the term is often employed for seller financing, those transactions in which... Read More
Interest-only Mortgages Have Their Pitfalls
Rising home prices, particularly on the East and West coasts have put the costs of home ownership seemingly beyond the reach of many. And yet, home ownership... Read More