Posted: Thu Mar 15, 2007 10:25 pm Post subject: open-variable and pre-approved mortgage
I want to know what is the difference between open variable mortgage and pre approved mortgage. And which one is better.
Which of the two offer the flexibility to pay down the mortgage without penalty. _________________ Cheap is the best things to do with loanskey uk.
Posted: Thu Mar 15, 2007 11:04 pm Post subject: RE: open variable mortgage vs pre-approved loan
Hi pankul,
Open variable rate mortgage is a home loan which is offered at an interest rate that varies with money market conditions. You can prepay or renegotiate with the lender to pay down the loan any time without having to pay extra interest amount.
Pre-approved mortgage is a home loan set at a certain rate of interest prior to purchasing your home.
Posted: Thu Mar 15, 2007 11:24 pm Post subject: Thanks Jerry
Thanks Jerry for your answer
One more think i would like to ask if you permit me. Is the variable rate convertible to any fixed rate later on. Will there be any penalty if i do so.
Thanks _________________ Cheap is the best things to do with loanskey uk.
wilmer Guest
Posted: Fri Mar 16, 2007 1:03 am Post subject:
variable rate can be converted to fixed rate. There can be penalty depending upon the lender.
Minchin Guest
Posted: Sat Mar 17, 2007 12:48 pm Post subject:
Quote:
Is the variable rate convertible to any fixed rate later on. Will there be any penalty if i do so.
Prepayment penalty exists on mortgages if it is paid off before a certain period of time has elapsed.
You should contact your lender to know if prepayment penalty exists for your mortgage or not and if it does then for how many years.
pan_kul
