Get no-obligation free mortgage quotes

Compare Mortgage Quotes

Call at 888-485-7561
and get current mortgage rates from a lender.

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Drop Lock Mortgage

Author

Message

Sam

Site Admin

Joined: 21 May 2005

Posts: 813
Location: CALIFORNIA
347.04 Dollars($)

Posted: Thu Jun 03, 2004 4:37 am Post subject: Drop Lock Mortgage	Like 0 Dislike 0

Drop Lock Mortgage is a discount or a tracker mortgage product.It has following characteristics: It has an option to switch to a fixed rate, at any point within the initial discount period, without paying an early repayment charges. It provides an ideal way to benefit from base rates when they are low. For example, Jack has taken a drop lock mortgage of $600,000 at a variable rate of 5% for his house renovation. His initial discount period is until june-2004. Jack wants to switch to a fixed rate of interest of 4% from a variable rate of interest of 5%. By drop lock mortgage he may switch to a fixed rate of interest within the initial discount period. No repayment penalties are charged from him.