Mortgage & Refinancing Information


Mortgage Information


A mortgage is borrowing money using property as a security, a type of secured loan in other words. Primarily, the purpose in borrowing the money is to purchase a property.

A mortgage is really another word for a property loan - a loan that allows you to borrow a large amount of money in order to buy a home or property which is secured on the value of that property, and which you pay back over an agreed period of time.

The term 'secured' means that if you default on payments and can't keep up with the payments schedule as agreed, the lender has the right to sell your property in order to recover their money.

A mortgage can be broken down into four main parts:

Capital - This is the amount of money that you borrow to buy the house.

Interest - This is the charge for borrowing money. Worked out as a percentage of the capital.

Term - This is the fixed period of time that the money is borrowed over.

Repayments - These are the regular payments you make throughout the term of the mortgage.

The mortgage is created by a legal charge on the property and, significantly, does not involve the transfer of land. The charge confirms that the property has been pledged to the lender as security for the mortgage loan.

Mortgages are usually repaid over 25 years, but depending on your situation and earnings it can be arranged over either a longer or shorter period of time. The amount you borrow is called the 'capital', and you will also have to pay back the interest charged to you by the lender.

The title deeds are held by the lender but when the purchase monies are paid over to the vendor, usually through a solicitor, the mortgagor becomes the owner of the property. The legal charge is supported by a loan agreement between the two parties which sets out the terms of the loan, the responsibilities and undertakings.

You have two options - repay the capital and the interest together - this is a 'repayment' mortgage, or repay the interest only, and organise another investment to cover the capital at the end of the term. This is known as an 'interest only' mortgage.

When looking at how much money a lender is willing to let you borrow, there are two factors that they will want to consider.

First of all, they will want to know how much you earn. Usually you will only be able to borrow around three times your salary.

If you are looking to purchase a joint mortgage with a partner or friend, then the income multiplier may be worked out differently. Some lenders will offer two-and-a-half times the joint salaries, or three times the higher salary, and one times the lower salary, whichever is higher.

Most lenders will also take into account the amount that you are looking to borrow, and the total value of the property. Although some lenders will allow you to borrow the full value of the property, most will only lend a certain percentage, say 95%.

When applying for a mortgage, there are certain points that you will need to consider before you sign on the dotted line.

First of all you need to consider how much you can afford. You should complete a budget, and work out how much money you have coming in, and how much money you spend each month. This should then give you an idea to how much you can afford to pay a lender each month for your mortgage.

You should also consider whether your income would allow you to afford the property you are after.

You also need to think about how long you will need to borrow the money for. A mortgage is a major financial commitment and will require that you can keep up the repayments for the full term.

If you repay your mortgage before the end of the designated term you may well be charged a penalty. Penalties are particularly common in the first few years of a loan or if you are taking advantage of a fixed rate or a discounted rate and can be very significant in size. Sometimes it is possible to serve notice to avoid these penalties.

Furthermore, some lenders will charge interest until the end of the month in which redemption occurs so it may pay you to time the redemption of your mortgage to avoid this charge. Some lenders also make additional charges such as vacating fees, deed release fees or other administration charges.

All of these costs should be highlighted in the mortgage offer or in the standard Terms and Conditions provided with that offer. Before committing to your mortgage, please check the redemption penalties which will be mentioned in the mortgage offer.

Getting a mortgage can be very complicated. If you are unsure about which mortgage to go for, then you should seek some financial advice.

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.


MORE RESOURCES:

Refinance mortgage rate ratchets higher for Friday  Bankrate.com

Multiple benchmark refinance rates floated higher today. If you're in the market for a mortgage, see how your payments might be affected.


Mortgage rates plunge to their lowest level in three months  The Washington Post

The 30-year fixed-rate average fell to 4.63 percent, its lowest level since September.


Refinance mortgage rate trends higher for Thursday  Bankrate.com

Refinance rates were mixed, but one key rate climbed higher. If you haven't locked a refinance yet, see how your finances could be affected.


Refinance mortgage rate moves lower for Wednesday  Bankrate.com

Refinance rates were mixed, but one key rate trended down. If you haven't locked a refi yet, see how your payments might be affected.


Refinance mortgage rate falls for Friday  Bankrate.com

Refinance rates were mixed, but one key rate declined. If you're shopping for a mortgage, see how your payments might be affected.


Refinance rates slide for Monday  Bankrate.com

Several benchmark refinance rates fell today. If you're in the market for a home loan, see how your payments might be affected.


Refinance mortgage rate eases for Thursday  Bankrate.com

Refinance rates were mixed, but one key rate dropped. If you're in the market for a mortgage, see how your payments might be affected.


5 Terrible Reasons to Refinance Your Mortgage  MoneyWise.com

Mortgage rates have been going up, so time may be running out if you're looking to refinance your home at an attractive rate, to lower your mortgage costs or...


Refinance mortgage rates mixed for Saturday  Bankrate.com

Refinance rates were mixed today. See what that means for your refinance.


Mortgage applications rise 1.6% as interest rates drop to lowest level since September  CNBC

December may be a slow month traditionally for the housing market, but mortgage lenders are suddenly getting busier. A sharp drop in interest rates drove ...


Higher mortgage refi app rejection rate signals tighter credit  Mortgage Professional America

The rejection rate increased notably for mortgage refinance applications in 2018, indicating tightening credit, according to the October 2018 Survey of Consumer ...


Refinance mortgage rates mixed for Monday  Bankrate.com

Refinance rates were mixed today. If you're shopping for a mortgage, see how your payments might be affected.


Refinance rates fall for Tuesday  Bankrate.com

Multiple closely watched refinance rates decreased today. If you're shopping for a home loan, see how your payments might be affected.


Mortgage apps increase amid rate declines  Mortgage Professional America

Mortgage applications rose during the week ending Dec. 7 amid an across-the-board decline in rates, according to the Weekly Mortgage Applications Survey ...


Mortgage rates higher for Tuesday  Bankrate.com

Several key mortgage rates climbed higher today. See what that means for you if you're in the market for a home loan.


Improved affordability should boost housing in 2019: Fannie Mae  National Mortgage News

Fannie Mae made a slight increase to its origination forecast, expecting housing affordability to improve in 2019 as mortgage rates remain flat and home price ...


Borrowers Are Tapping Their Homes for Cash, Even as Rates Rise  The Wall Street Journal

Rising mortgage rates are crushing much of the refinancing market. But Americans are still using refis to pull cash out of their homes. More than 80% of ...


JACK GUTTENTAG: Purpose determines if refinance is correct answer  Sarasota Herald-Tribune

Should I refinance?This question was posed to me recently through Quora, the question and answer website. I did not answer it there because an adequate ...


Refinance rates retreat for Saturday  Bankrate.com

Several key refinance rates tapered off today. If you're shopping for a mortgage, see how your payments might be affected.


Retreat of Smaller Lenders Adds to Pressure on Housing  The Wall Street Journal

Small and midsize U.S. mortgage firms are trimming staff, putting themselves up for sale and closing up shop at a clip not seen in years, a sign of the pressure on ...


Refinance rates trend higher for Tuesday  Bankrate.com

Several closely watched refinance rates rose today. If you're in the market for a mortgage, see what that means for you.


Mortgage Refi's in U.S. Plummet 21 Percent, Lowest Levels in 18 Years  World Property Journal

681455 refinance mortgages in the U.S. secured by residential property (1 to 4 units) were originated in the third quarter, down 15 percent from the previous ...


CFPB sues mortgage company for allegedly deceiving veterans about refinance benefits  Lexology

On December 6, the CFPB announced the filing of a complaint and proposed final judgment in the U.S. District Court for the District of Nevada against…


Closely watched mortgage rate climbs for Monday  Bankrate.com

Mortgage rates showed no clear direction today, but one key rate ticked up. The average for a 30-year fixed-rate mortgage cruised higher, but the average rate ...


Refinance rates ease for Friday  Bankrate.com

Several closely watched refinance rates sunk lower today. If you're in the market for a mortgage, see what that means for you.


Mortgage rates dip for Tuesday  Bankrate.com

Several closely watched mortgage rates tapered off today. If you're shopping for a mortgage, see how your payments might be affected.


Refinance rates drop off for Wednesday  Bankrate.com

Several key refinance rates dropped today. If you're in the market for a refi, see how that could affect you.


U.S. mortgage activity rises near two-month high: MBA  Reuters

(Reuters) - U.S. borrowers filed the most mortgage applications in nearly two months as 30-year home loan costs fell to their lowest levels since early October, ...


LendingTree launches new mortgage comparison report  Mortgage Professional America

Inaugural report combines mortgage offers spread, rates.


Why Are Mortgage Applications Declining?  The MReport

What has led to a decline in mortgage loan applications? A New York Fed report examines the trend based on consumers' experiences and expectations.


CFPB seeks half-million-dollar settlement with mortgage company over veteran refis  Mortgage Professional America

The Consumer Financial Protection Bureau has announced that it filed a complaint against Village Capital & Investment on allegations of deception. The CFPB ...


Refinance rates drop off for Saturday  Bankrate.com

Multiple benchmark refinance rates trended down today. If you're in the market for a refinance, see how your payments might be affected.


Refinance rates dip for Wednesday  Bankrate.com

Several benchmark refinance rates receded today. If you're shopping for a home loan, see what that means for you.


Mortgage rates trend down for Friday  Bankrate.com

Multiple closely watched mortgage rates fell today. See what that means for you if you're in the market for a mortgage.


Refinance rates slide for Friday  Bankrate.com

Multiple key refinance rates declined today. See what that means for your refi.


Wilshire Quinn Provides $950000 Cash-Out Refinance Loan in Sacramento, CA  Business Wire

Wilshire Quinn Capital, Inc. announced Friday that its private lending fund, the Wilshire Quinn Income Fund, has provided a $950000 cash-out refinanc.


New leadership in NMRC and expectations from mortgage market  BusinessDay

The emergence of a new leadership at the Nigerian Mortgage Refinance Company (NMRC) early this month has raised *fresh* hope and expectations in the ...


Choosing between an ARM versus a fixed-rate mortgage  Bankrate.com

One of the key decisions homebuyers and homeowners make is whether to go with a fixed- or adjustable-rate mortgage. Each have benefits and drawbacks, ...


Refinance Your Mortgage Quickly: Prequalify in Just 3 Minutes  Credible News

Let us do the heavy lifting for you. Compare rates from multiple lenders with no impact to your credit score. Refinance your mortgage with peace of mind.


Mortgage firm appoints chair, MD  New Telegraph Newspaper

Nigeria Mortgage Refinance Company Plc (NMRC) has appointed a Senior Advocate of Nigeria, Charles Adeyemi Candide-Johnson and Mr. Kehinde ...


Risky Home Loans Are Making a Comeback. Are They Right for You?  The New York Times

Mortgage lenders are again promoting more complicated loans, which offer benefits for wealthy borrowers but come with big drawbacks.


What Americans Should Know Before Cashing out $6 Trillion in Home Equity  Credible News

U.S. home values hit a low for the downturn of $148,600 in February, 2012. At that point, millions of homeowners were “underwater” — they owed more on their ...


Mortgage applications fall, as refinancing hits 20-year low  CNBC

A significant drop in mortgage interest rates was not enough to entice homeowners to refinance their loans last week.


Former mortgage company owner on the hook for $11.5m in fraud scheme  Mortgage Professional America

A former owner of a Pennsylvania-based mortgage company has been ordered to pay more than $11.5 million in restitution and forfeiture after pleading guilty to ...


Weekly refinance demand plummets as mortgage rates hit a 5-week high  CNBC

A sharp rise in mortgage interest rates took its toll on the lending business last week. Mortgage application volume fell 1.8 percent for the week, according to the ...


Checking on lunch kebabs: Has the home loan crackdown gone too far?  The Sydney Morning Herald

When Carla Jenkins recently sought to refinance a loan over a house she bought six years ago, she faced a very different vetting process from her bank.


The troubling reason grandparents should think twice about spoiling their grandkids this holiday season  MarketWatch

Grandma and grandpa may love to spoil the grandkids every Christmas, but they might want to hold off on spending too much on presents this holiday season.


3 Signs You Should Refinance Your Mortgage  The Motley Fool

Refinancing at the right time can save you thousands of dollars a year.


Hyper-Realistic Scenes Cut from “Cats” the Musical That They Should Put in the Movie  The New Yorker

Sarah Hutto humorously imagines scenes that should be included in the “Cats” musical movie, featuring Mr. Mistoffelees, Rum Tum Tugger, Grizabella, and ...


Refinance mortgage rates mixed for Friday  Bankrate.com

Refinance rates were mixed today. If you haven't locked a refinance yet, see what that means for you.


Refinance mortgage rates mixed for Tuesday  Bankrate.com

Refinance rates were mixed today. See what that means for you if you're in the market for a mortgage.


Credible Expands Their Marketplace Into Mortgage Refinancing  Lend Academy

Credible made a name for themselves in student loans. They are the first and largest marketplace for people looking to refinance their student loans. Borrowers ...


Refinance mortgage rates mixed for Thursday  Bankrate.com

Refinance rates were mixed today. If you're in the market for a home loan, see how your payments might be affected.


Mortgage application activity rises on uptick in refinance volume  National Mortgage News

An increase in refinance activity in the period after Columbus Day drove mortgage applications 4.9% higher from one week earlier, according to the Mortgage ...


Thinking of Refinancing Your Mortgage? Check These 4 Financial Areas First  Forbes

Refinancing your mortgage can be a great way to save on your monthly payment or to change up the terms of your loan. However, while it's a financial move that ...


Refinance mortgage rates mixed for Wednesday  Bankrate.com

Refinance rates were mixed today. If you're in the market for a refi, see how your payments might be affected.


Refinance mortgage rate eases for Saturday  Bankrate.com

Refinance rates were mixed, but one key rate slid lower. If you're shopping for a refi, see how your payments might be affected.


Refinancing activity in the US just plunged to the lowest level in over a decade  Business Insider

Refinancing activity plunged to the lowest level since 2000 as interest rates rise.


When Is a Cash-Out Refinance Loan a Good Idea?  U.S News & World Report Money

In a cash-out refinance mortgage, you take a loan against your home in excess of what you owe, leaving you with cash available to spend. Adding to the debt ...


Refinance mortgage rate moves up for Friday  Bankrate.com

Refinance rates were mixed, but one key rate moved higher. If you're in the market for a mortgage, see what that means for you.


Refinance mortgage rate trends higher for Tuesday  Bankrate.com

Refinance rates were mixed, but one key rate were higher. The national average for a 30-year fixed-rate refinance advanced, but the average rate on a 15-year ...


Refinance mortgage rate advances for Thursday  Bankrate.com

Refinance rates were mixed, but one key rate moved higher. See what that means for your refinance chances.


Refinance mortgage rate drops for Friday  Bankrate.com

Refinance rates were mixed, but one key rate were down. If you haven't locked a refi yet, see what that means for you.


Investors Bank originates $219M in loans throughout tri-state area  NJBIZ

Short Hills-based Investors Bank said it has originated five commercial real estate and multifamily housing loans in New Jersey, valued at $116 million.


Rates Are Rising, But Is It Time To Refinance? Five Scenarios To Consider  Forbes

Mortgage rates are rising. Does that mean it's time to refinance? About 85% of you just shuddered at the thought of refinancing as rates climb. Hear me out.


TFS Financial (NASDAQ:TFSL) Upgraded at BidaskClub  PressOracle

BidaskClub upgraded shares of TFS Financial (NASDAQ:TFSL) from a buy rating to a strong-buy rating in a report published on Saturday, December 8th.


Refinance rates rise for Tuesday  Bankrate.com

Multiple key refinance rates moved higher today. If you're shopping for a home loan, see what that means for you.


Rocket Mortgage Review  Bankrate.com

Rocket Mortgage from Quicken Loans lets you apply for a mortgage in minutes using nothing more than a smartphone app.


Best Mortgage Lenders  Bankrate.com

The best mortgage lender isn't the same for everyone.That's why we compiled a list of best mortgage lenders for first time home buys to those looking for their ...


Refinance mortgage rate slides for Thursday  Bankrate.com

Refinance rates were mixed, but one key rate slid lower. If you haven't locked a refinance yet, see what that means for you.


Refinance rates drop off for Thursday  Bankrate.com

Multiple key refinance rates receded today. If you haven't locked a refinance yet, see how your finances could be affected.


Refinance mortgage rate slides for Monday  Bankrate.com

Refinance rates were mixed, but one key rate sunk lower. See what that means for your chances of scoring a killer refi rate.


Refinance rates fall for Saturday  Bankrate.com

Multiple key refinance rates trended down today. If you're in the market for a home loan, see what that means for you.


Refinance mortgage rate ticks higher for Wednesday  Bankrate.com

Refinance rates were mixed, but one key rate floated higher. See what that means for your chances of getting a better mortgage rate.


Refinance rates tick lower for Thursday  Bankrate.com

Several key refinance rates declined today. See what that means for your refinance chances.


Factors to weigh when considering whether to refinance your home  Washington Post

REAL ESTATE MATTERS | If you can lower your interest rate, that's good. But you also have to look at your monthly payment. Will your new monthly payment be ...


When and How to Refinance a Personal Loan  Bankrate.com

If you're thinking about refinancing a personal loan, check these factors first.


Credible Brings the Power of Its Marketplace to Mortgages  Credible News

We set the standard for transparency in the student loan industry. Now we're out to do the same for mortgages.


Programs to save you money - Mortgage Matters  Castanet.net

This is a busy time of year, but it is also a good time to review your finances by knowing what resources, grants and rebates are available for new and current ...


Refinance rates slide for Wednesday  Bankrate.com

Several key refinance rates declined today. If you're shopping for a mortgage, see how your payments might be affected.


Government set to launch affordable housing project next week  Capital FM Kenya

NAIROBI, Kenya, Dec 12 - President Uhuru Kenyatta says he will launch the first affordable housing project in a week's time. Speaking during the 55th - Kenya ...


Mortgage refinance candidates cut by half in the past four months  National Mortgage News

The number of mortgage borrowers for whom it made sense to refinance declined by nearly half since the end of last year and is at its lowest since November ...


PSM HOLDINGS In/SH (PSMH) versus PennyMac Financial Services (PFSI) Head-To-Head Analysis  Fairfield Current

PennyMac Financial Services (NYSE:PFSI) and PSM HOLDINGS In/SH (OTCMKTS:PSMH) are both finance companies, but which is the superior investment?


Refinance rates increase for Tuesday  Bankrate.com

Multiple key refinance rates climbed today. If you're in the market for a home loan, see how your payments might be affected.


Refinance rates decline for Thursday  Bankrate.com

Multiple benchmark refinance rates receded today. See what that means for your chances of getting a better mortgage rate.


Refinance mortgage share falls back to 2018 low  National Mortgage News

As mortgage rates recently hit their highest point in seven years, closed refinances fell back to their low point of 2018, according to Ellie Mae.


Contrasting PPDAI Group (PPDF) and Lendingtree (NASDAQ:TREE)  Fairfield Current

Lendingtree (NASDAQ:TREE) and PPDAI Group (NYSE:PPDF) are both finance companies, but which is the better business? We will compare the two ...


What It Takes to Refinance a Jumbo Loan  NerdWallet

Refinancing a jumbo loan, a mortgage over $484350, in most cases, and up to $726525 and even higher in some high-cost areas, can result in big savings and ...


Mortgage rates ease for second consecutive week, third time since January  The Washington Post

Mortgages rates dropped for the second week in a row and just the third time this year. According to data released Thursday by Freddie Mac, the 30-year ...


Potential refi market falls 40% as mortgage rates keep rising  National Mortgage News

The spike in 30-year fixed interest rates, at a time of continuously rising home prices, has pushed home affordability to its lowest level since 2009, and cut ...


Education Minister asks to see 'unsettling' Catholic-lifestyle teacher contracts  Edmonton Sun

Education Minister David Eggen's office has asked Alberta's 17 Catholic school boards to send him copies of their employment agreements.


Mortgage refinance share jumps 5% despite rising interest rates  HousingWire

The refinance share of mortgage activity increased a full 5% from December to January, rising to 45% of all closed loans, according to the latest Origination ...


Refinance rates move higher for Tuesday  Bankrate.com

Several key refinance rates rose today. See what that means for you if you're in the market for a home loan.


More than 2 million homeowners just missed their chance to save money by refinancing  CNBC

Sometimes procrastination can cost you a lot of money. Mortgage rates are nearly a full percentage point higher than they were at the start of this year.


How Long Does It Take to Refinance a Mortgage?  Realtor.com News

How long does it take to refinance a mortgage? Refinancing should take anywhere from 30 to 45 days on average, although that can stretch to 60 days if you hit ...


5 Tips for Finding the Best Refinance Mortgage Lenders  NerdWallet

Finding the best mortgage refinance lender for your situation requires knowing your credit score, shopping more than one lender, negotiating lender fees, ...


Mortgage rates are on the rise. Here are some tips for getting the lowest rate.  The Washington Post

The 30-year fixed-rate average hit a seven-year high last week. But that doesn't mean you still can't get a low rate when buying a home or refinancing a loan.


Goodbye refi: Rising interest rates all but erase refinance demand  HousingWire

While mortgage interest rates dipped ever so slightly in the last week, they've been trending up for the majority of this year. In fact, the interest rate on a 30-year, ...


Refinance rates rise for Wednesday  Bankrate.com

Multiple closely watched refinance rates floated higher today. See what that means for you if you're in the market for a mortgage.


home | site map
© 2007