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Mortgage & Refinancing Information |
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What is a Current Account Mortgage?
Current account mortgages are fairly new to the sector. They are quite different to other types of mortgage as they enable you to set off all your savings and debts in one single account. Several lenders offer this type of flexible mortgage that is linked to a current account, and is called a current account mortgage. Your mortgage account and your bank account are merged into one and you are issued with a cheque book and cash card just as you would with an ordinary current account. You pay your salary into the account and a proportion is automatically used to meet your monthly mortgage repayment. You can pay as much off your mortgage as and when you like, according to monthly minimums set by the mortgage lender. You can also use your savings to put against your mortgage, paying the mortgage off more quickly and reducing interest payments. A current account mortgage allows you to run a current account against the mortgage allowing any money in the current account to offset against the mortgage and reduce the overall interest you pay on the loan. This in turn will reduce the mortgage term. A current account mortgage is where you put most or all of your financial commitments into one account. So your savings and your income are paid into the one mortgage account and all your debts are combined in the same account. It's not so much a mortgage, more of a large overdraft that's secured on your house. Current account mortgages work by turning your mortgage into a large overdraft. They allow you to set off all the savings you have against all the debts you that owe. You combine all your debts with all of your income in a single current account. So every time your salary is paid in, you reduce the amount of the 'overdraft'. Every time you take money out, the overdraft increases. This means you can overpay and underpay without being penalised for it. The more savings and income you have in your account, the less interest you will pay overall. Since the interest is calculated on a daily basis, you will immediately benefit from any overpayments you make. At any time you can borrow back some or all of the money you have managed to overpay on your mortgage. These mortgages are ideal for those who are paid regular bonuses so consequently can reduce the mortgage balance quickly. The good thing about current account mortgages is that the interest charges on all your borrowings are at a cheaper, variable rate for mortgages instead of the more common credit card rates. To compensate for this, rates on current account mortgages, tend to be slightly higher than standard mortgages. You may freely reprint this article provided the author's biography remains intact: About The Author John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
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Today's mortgage refinance rates: 30-year rates plunge below 3% for the first time in 34 days | April 16, 2021 Fox Business Today’s mortgage refinance rates are rising, but they’re still under 3% — for now | April 13, 2021 Fox Business Today's mortgage refinance rates — one key rate rises while others stick below 3% | April 12, 2021 Fox Business Today's mortgage refinance rates see little change as market holds steady | April 1, 2021 Fox Business Today's mortgage refinance rates keep rising — one key rate hits 3% again | March 30, 2021 Fox Business Today's mortgage rates inch up from record lows, but refinance rates still a great deal | April 15, 2021 Fox Business Today's Mortgage and Refinance Rates: April 18, 2021 | Rates Swing Business Insider Today's Mortgage and Refinance Rates: April 3, 2021 | Rates Bump Up Business Insider 5 ways to identify mortgage refinancing scams FOX 5 Atlanta Refinancing a home equity loan: Why and how to do it Fox Business Today's Mortgage and Refinance Rates: March 27, 2021 | Rates Slip Business Insider UI Says HARP 2.0 Could Help Pandemic-Era Borrowers Mortgage News Daily Top 3 Borrower Motivations Driving Surge In Refinance Loan Volume Digital Media Solutions Fitch Assigns Saudi Real Estate Refinance Company First-Time 'A' IDR; Outlook Negative Fitch Ratings VA Construction Loan Guide | Requirements & Process 2021 The Mortgage Reports HFA Loan Guide 2021 | What is an HFA loan? Who qualifies? The Mortgage Reports How to calculate commission income for your mortgage The Mortgage Reports Mortgage Refinance Options & Types | Refinance Chase News & Stories Saudi Real Estate Refinance Company -- Moody's assigns first time ratings to Saudi Real Estate Refinance Company Yahoo Finance The 2 Big Reasons We've Stopped Making Extra Mortgage Payments The Motley Fool Best mortgage refinance lenders in 2021 Bankrate.com Today's mortgage refinance rates push further into record low territory | January 28, 2021 Fox Business 3 signs you should refinance your mortgage right now Fox Business Today’s mortgage refinance rates hold steady for third consecutive day | December 11, 2020 Fox Business Today's mortgage refinance rates stable, one key rate still below 3% | February 24, 2021 Fox Business How do I get the most out of my mortgage refinance? Fox Business The Best Mortgage Refinance Lenders of April 2021 Business Insider Today's mortgage refinance rates stop rising, hover near historical lows | March 16, 2021 Fox Business Today’s mortgage refinance rates mixed — one key rate drops while another rises | March 2, 2021 Fox Business Today's Mortgage and Refinance Rates: February 8, 2021 | Rates Up Business Insider 15-Year Mortgage Refinance Rates for April 2021 NextAdvisor Can refinancing a mortgage hurt my credit score? Fox Business Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 Forbes Current 30-Year Refinance Rates for April 2021 NextAdvisor |
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