A flexible mortgage means that you can make changes your repayment plans as per your financial position. Flexible mortgages give you the liberty to manage your mortgage repayments the way you want either by overpaying when you have extra money, to underpay in case of financial difficulties, borrowing back the overpaid amount when you need it.
Some key characteristics from which you can realize that you are facing a subprime mortgage plan and one of those important aspects is that you must pay attention at is the level of the interest rate: if it is higher than the market level, it is not a good sign. Moreover, if the level of your mortgage rate is in the 15% range and the offered interest rate is around 5%, then you are definitely facing with a subprime mortgage. Another way from which you can notice if you are having a subprime mortgage is the case of having the possibility to purchase your house with less than 20% for a down payment.
Depending upon the terms and conditions of your mortgage agreement, some lenders also allow you to make lower your instalment amount. You can take advantage of such benefits during financial adversities or when you are going through a lean patch. The other important advantage associated with a flexible mortgage is that you can opt for payment holidays. During Payment holidays you can miss your instalments without getting penalised.
However, lenders generally lay down certain conditions before availing payment holidays. For example, if your repayment instalment amount is 1000 per month and you have made overpayments of 5000, then you can be allowed to take repayment holidays for some months.Therefore, if want independence in your repayment plans then a flexible mortgage is something worth opting for…
You can qualify for a rate freeze if your loan-to-value ratio is 97 percent or higher, meaning you have less than 3 percent equity in your home. Your FICO score needs to be 660 or below and has not raised by more than 10 percent since you took out the loan as well. If you are in a situation where you are thinking how can I sell my house fast myself then contact your local home buyer or local real estate investors. There are real estate investors who buy properties all over the nation; they are local to your area and professionals you can trust.
Learn more about Obama Mortgage Relief Plan Qualifications.