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Felix Said:

Does the mortgage interest rate different from the online quote ones and when they run the history ?

We Answered:

1) yes
2) yes
3) no... only the first inquiry will 'ding' your credit. (and its only a few points) The way it works is the credit bureaus look at the kind of inquiries and if they are all mortgage brokers, etc., they only ding you for the first one. It's not enough to have a negative affect on your FICO score.

To give an accurate estimate they will have to run your credit, otherwise it's just guesswork on their part.

Warren Said:

Where can I get a quote to refinance that doesn't want personal information?

We Answered:

This is a fact: It is IMPOSSIBLE to get ACCURATE quotes without a loan officer knowing, at the very least, your credit score, credit history, income situation, and LTV (loan to home value ratio). If people tell you differently, they are either mistaken or lying to you.

I recommend you speak to a GOOD mortgage broker and let him/her do a full analysis of your situation. A good broker will research hundreds of rates and programs for you, and the closing costs are comparable to a bank. A good broker would never provide your info to any unauthorized third party.

Online application sites will result in you getting quotes that are "best case scenario" quotes - once again, it is impossible for an accurate quote to be provided without determining (at the very least) credit, income, and LTV qualifications. My website (no, it is not a sales or "application" site") has a good article on the pros and cons of quote websites - the direct link to the article is http://www.mortgagemystery.com/mortgage-…

I can give you a "best case scenario quote" right now. If you have a 720 credit score, 80% LTV, and full income documentation, somewhere between 6% and 6.375% is reasonable.

You can contact me if you want more information, but if you want rates, it will only be the result of a full analysis.

Roland Said:

Where can i get a free online mortgage quote?

We Answered:

I used my own bank, but it's only a guide as it doesn't know your credit rating etc.

Carrie Said:

What is the deal with mortgage rates advertised on Yahoo Finance or Bankrate?

We Answered:

This is a example of how the lenders try to get the business from the people like you. They advertize low rate, but if you call them, this rate is not for you, because your credit is not good or you don't have enough equity or down payment. Every costumer is diferent and those low rates are reserved for the best costumers or they are not available now, because market change and rates go up ( sometimes they change 3 times a day). Please be carefull about applaing for the loan over the internet, because if you will put your info- you will be bombarded with emails and phone calls from diffrent lenders. My advice- call the local bank or broker to find out about rate for your situation and they will be more like to explain to you why this or that.

Edna Said:

online mortgage broker vs direct lender aka bank?

We Answered:

I would never advise someone to get a mortgage online. I have seen too many transactions not close because of some fly-by-night online lender.

Brokers are fine but use one who is located in your area.

Sidney Said:

Mortgage - repayments query?

We Answered:

Excel has formulas that do this very well, but you can easily do some rough figures yourself.

A typical mortgage is repaid over 25 years, which is 300 months. So, as you say, if there is no interest repayments for your £125k would be £416.66 per month. Or £5,000 per year.

But you are massively underestimating the effect of interest. 5% per year on £125k is £6,250. You have to repay this as well, so in year 1 your annual payments more than double to £11,250 or £937.50 per month. The following year you owe a bit less, so the interest is a bit less, so the total repayment is a bit less. Until you get to the last year when you have very little interest so your repayments would be the £416.66 you first mentioned.

In practice you don't repay like this. The lender works out in advance how much interest would be charged, assuming you make all the repayments on time, then works out a single flat repayment that (assuming rates don't change) will result in your repaying the loan and interest after 25 years.

As a better guesstimate you can average the year 1 and final year calculations (ie 937.50 and 416.66) which gives you £677.08 per month. Even this is an underestimate because it takes no account of the interest on the interest, which is significant. As a ball park figure you should expect to repay about twice what you borrow (in even installments this makes £832 per month). But I can be as certain as I can that the repayments you have quoted are accurate.

The best way to reduce the amount you pay overall is to shorten the term (eg 20 years not 25) but this raises your monthly repayments which many people struggle with as it is.

Ted Said:

What happens if I let my 5-yr ARM mortgage adjust?

We Answered:

Your mortgage contract will spell out exactly what index is used and how many points over that index you will be paying. With today's low interest you may actually adjust downward. So calculate what the interest rate will be based on today's rates and you can go from there. Since your loan to value is 93% you may have a hard time refinancing without putting up some cash. Also in order to refinance you may have to pay off the second.