Getting The Right Rate On A Deal Glasgow Daily Record, UK - Nov 21, 2008 At least if interest rates continue to fall or even remain at this level then when your mortgage deal comes to an end you might find yourself paying the ...
Trackers still worth considering Aberdeen Press and Journal, UK - Nov 24, 2008 The maximum amount you can borrow is up to 75% of the value of the property and the deal is portable. A two-year rate: Abbey has a two-year tracker with a ...
Home Deals: Tracker Rates Looking Good Glasgow Daily Record, UK - Nov 14, 2008 The maximum amount you can borrow is, once again 75 per cent of the value of the property and the deal is portable. The ideal scenario would be to have a ...
Shoppers rush to stores TMCnet - Nov 28, 2008 Looking at portable DVD players at Target, Wendy Kriete, 35, said she is buying fewer small gifts, but plans to spend the same amount as last year. ...
Miller Electric Mfg. Co. to Cut 95 Jobs MarketWatch - Nov 19, 2008 Miller has invested in new and/or expanded facilities for its Portable Power, Light Industrial and Components business units in the last two years, ...
Industry Leaders Reflect on '08, Predict '09 Trends Today's SurgiCenter, AZ - Nov 20, 2008 Even as the US economy tries to right itself again after the mortgage meltdown, the credit crisis and a jittery stock market in the last quarter of 2008, ...
Animal Crossing: City Folk Wii Review TheHDRoom - Nov 15, 2008 Aside from obviously being portable, the "flat" world on GameCube was transformed into a "3-D" scrolling mini-globe, all-new music was written and ...
PR Newswire High Technology Summary, Tuesday, Nov. 11, 2008 SYS-CON Media, NJ - Nov 11, 2008 ... SF45439 11/11/2008 13:05 rf WA-Zillow.com-Rates (SEATTLE) Mortgage Rate Volatility Tapers Off: Rates Stay Relatively Stable During Latter Part of Last ...
The Leatherman of energy policy Grist Magazine, WA - Nov 17, 2008 The great thing about the Leatherman was that it was easy to use, portable, and great for my single-guy mojo ("wait, I can fix that, I happen to have a ...
Source: Google News
Recent News and Articles on the Keywords: portable mortgages + mortgage + portable Related to the article below (Last Update: 8/4/2008)
Penalty-free home loans offer built-in flexibility Aberdeen Press and Journal, UK - ...mortgage amount to reduce the term of your mortgage. There are no redemption penalties, but there is a deeds-release fee of ?225. The loan is portable...
Is Low-Cost Health Insurance Worth It? MSNBC - Kenison also likes term life policies that are portable -- that is, you can take the policy with you if you leave or lose your job. ...
Home Deals Glasgow Daily Record, UK - Aug 2, 2008 Other than that, make sure your main outgoings such as a mortgage are at competitive rates. It is still possible to get mortgage deals with interest rates ...
Writer eats healthy, finds it's just a bit more expensive Pueblo Chieftain, CO - It?s totally portable and will set you back about $1.44. For dinner I?ve already let on about the bratwurst and chicken thighs, but I also eat a fair amount ...
Watch Out For This Mortgage Blunder Motley Fool UK, UK - Jul 11, 2008 Luckily, most decent mortgage deals nowadays are portable, so you may not need to pay an ERC to move the mortgage to a new property, because you are staying ...
Home Deals: Save On Hols With A New Mortgage Glasgow Daily Record, UK - Jul 25, 2008 Once again the deal is portable and is available up to 75 per cent of the value of the property. There are thousands of deals and they change frequently so ...
First Internet Bancorp Announces Second Quarter Earnings MarketWatch - Jul 22, 2008 ... which allow the Bancorp to reposition First IB and Landmark Mortgage Company ("LMC") staff and facilities. These portable technology enhancements ...
Homes: Self-Certify Your Mortgage Deal Glasgow Daily Record, UK - Jul 11, 2008 ... England base rate plus 2.25 per cent for the rest term of the mortgage. The arrangement fee is 1.5 per cent of the loan amount and the deal is portable. ...
- WJ Hale, WR Horst, AR Creech Jr - US Patent 4,689,478, 1987 - Google Patents ... FIRST BANK HOME MORTGAGE LOAN FIRST BANK HOME IMPROVE/AUTO LOAN COLUMBIA GAS AND ...
SYSTEM FOR HANDLING TRANSACTIONS INCLUDING A PORTABLE PERSONAL TERMINAL ...
[PDF]The UK Mortgage Market: Taking a Longer-Term View - D Miles - UK Treasury, 2004 - warwick.ac.uk ... 12 Why is the take-up of longer-term fixed-rate mortgages so low? 17 ... 21 Section 3.
Macroeconomic implications of fixed and variable-rate mortgages 23 ...
- CB Lloyd - US Patent 4,876,648, 1989 - Google Patents ... point where the amount of the mortgage payments far 50 enable the mortgage to be portable for the borrower, exceed the ability of the borrower to make the pay- ...
Simulation-based pricing of mortgage-backed securities - J Chen, F Mae, F Mae - Simulation Conference, 2004. Proceedings of the 2004 Winter, 2004 - ieeexplore.ieee.org ... In some scenario, if mortgages prepay real fast, the IO investor could not even
recover her initial investment. ... Prepayment models for individual mortgages. ...
A comparison of US and Canadian residential mortgage markets - MJ Courchane, JA Giles - Property Management, 2002 - emeraldinsight.com ... Keywords Housing, Mortgages, Finance, Policy, USA, Canada Abstract As financial
markets move toward increased globalization, it becomes worth considering ...
[CITATION] FANalyzer: An automated portable test bench for analyzing the performance of fractional horsepower … B Sikorski, S Moffatt - … Scientific Ltd. to Canada Mortgage and Housing Corporation, …, 1996
Mortgage Default Insurance in the US - RJ Struyk, DE Whiteley - urban.org ... Note: This report is available in its entirety in the Portable Document Format
(PDF). TABLE OF CONTENTS. Mortgage Default in the US: Implications for Russia A ... -
- E Bloomquist, R Spellman, BJ Wilson - US Patent 7,089,503, 2006 - Google Patents Page 1. US007089503B1 (12) United States Patent Bloomquist et al. (54) MORTGAGE
LOAN CUSTOMIZATION SYSTEM AND PROCESS ... Lender Secondary Mortgage Market SERVER ... -
[CITATION] Section I Notices of Development of Proposed Rules and Negotiated Rulemaking M Brokers, L Originators, P Representatives, MBL … -
Source: Google Scholar
Are portable mortgages a good deal?
By: Jack Guttentag
"I have heard that you can now get a mortgage that can be moved from one property to another. That sounds like it would save me a lot of money because my company moves me every three or four years. Can you provide details?"A portable mortgage is one that can be moved from one home to another. Instead of repaying your mortgage when you move and taking out a new one on the new home, you transfer the old mortgage to the new property.
Portable mortgages were a long time coming and are currently available from only one lender: E*Trade Mortgage. E*Trade offers the portability option only on 30-year fixed-rate mortgages at an interest rate 3/8 percent higher than the rate on the identical mortgage without the option. Borrowers must be purchasing single-family homes as their permanent residence; refinancing doesn't qualify. They must have squeaky-clean credit, and they must provide full documentation.
There are two major benefits to the borrower. One is that it avoids the costs of taking out a new mortgage. This cost must be set against the cost of paying 3/8 percent more in rate, which rises the longer the period between the first purchase and the second. I have done some comparisons, on the basis of which the break-even period comes out to roughly four years on a $150,000 loan. If you expect that you won't be buying your next house within four years, the cost saving on the future mortgage won't cover the cost penalty imposed by the 3/8 percent rate premium. The period is a little shorter on a larger loan, longer on a smaller loan.
But the portable mortgage has another benefit of considerable value. It allows you to avoid any rise in market interest rates that occurs between the time you purchase one house and the time you purchase the next one.
During my lifetime, I have seen mortgage rates as low as 4 percent and as high as 18 percent. When rates are at 6 percent, there is clearly much greater potential for rise than for decline. If rates increase, the portable mortgage protects you, and if they decrease, you can get the benefit by refinancing. There is no prepayment penalty.
Borrowers who confidently expect to move within five or six years and fear that a major spike in rates could seriously crimp their plans may find the 3/8 percent rate increment a reasonable insurance premium. It is less valuable for borrowers who expect to move every three years, since the transfer option can only be used once.
Portability is also less valuable for borrowers who expect to trade down when they move. Since they will need a smaller mortgage at that point, the rate protection is not worth as much. However, E*Trade will recalculate their payment if the new mortgage is more than $10,000 smaller than the old one.
Borrowers who trade up cannot increase the original loan. E*Trade will give them a second mortgage at the market rate on first mortgages at that time, but the sum of first and second mortgages cannot exceed 80 percent of property value. The borrower will have to pay settlement costs on the second—the same costs that a new borrower would have to pay at that time. Borrowers trading up could well find that they would do better getting a second mortgage from another lender.
Borrowers with the excellent credit needed to qualify for a portable mortgage should be confident that they can maintain that record. Borrowers in bankruptcy or behind in their payments cannot exercise the transfer option. In such a situation, they would have paid the 3/8 percent rate increment for nothing.
