If a borrower has savings and they want a mortgage that follows the Bank of England’s base lending rate, then an offset tracker mortgage is worth considering. Offset tracker mortgages have a higher interest rate than a mainstream mortgage, however for many people, because the mortgage offers them flexibility in managing their financial affairs, it is an ideal mortgage for them. (more…)
Refinancing a property comes with a lot of benefits such as reduce interest costs, lower monthly payments, extra savings and others. But refinancing a mortgage is not for everybody, hence some factors need to be considered before ones embarked on it. (more…)
The U.S. Census Bureau and the Department of Housing and Urban Development announced today that sales of new, single-family homes in December decreased 4.7 percent compared to November’s numbers. (more…)
In our previous post we pointed out the fact that many homeowners have an economic incentive to walk away from a property if they owe more than it’s value. What we didn’t add, due to time constraints, was a discussion about how this this behavior (which we will see more of in 2008 than ever before,) is not without consequences. What are they? When the shooting is over, we will see lenders attempt to adjust their pricing and underwriting standards to account for the fact that if properly incented, borrowers will simply walk. This means higher rates, down payments, and tougher underwriting stand (more…)