British clients often ask us
what type of mortgage should we choose,
Dollar based or Sterling based?
Overseas
Property - If you are a resident of the UK buying
a property overseas, you will have to perform one or more currency
transactions to complete your property purchase. Details Here
Potential non-resident home buyers often ask us to comment
on the currency risk and other factors they should be aware of when owning property in the
USA. The only fact you can be assured of is it is virtually impossible for you
to eliminate all currency risk no matter which mortgage you select.
If you choose to secure a Sterling debt on a Dollar asset (your new house),
you are rolling-up the currency risk until you sell the dollar asset and have to repay a
sterling debt. If you choose a dollar debt, you face the currency risk in smaller
increments each month when you make your payment with Pounds.
Your first question is; do I want to
roll-up the risk until some unknown point in the future, or face
it in smaller increments each month? We can offer you independent, unbiased advice on
US Dollar and UK Sterling mortgages. Call to discuss questions that pertain to your
personal situation on 001 561 392 8044 ext.
6# (Florida office) or UK 0207.993.2002 (London) between 14.00 and 23.00 UK time
Monday to Friday or email anytime: ukinfo@lynxbanc.com
Stable Interest
Rate Index
What is the most important feature of an adjustable (variable) rate mortgage
(ARM)? The index that determines its rate: stable indexes protect the borrower from rapid
increases, volatile indexes do not. Rates on the Dollar ARM's rise and fall with the COSI
index, one of the slowest-moving and most stable of all ARM indexes. Compare the chart of
the COSI to the B of E Base Rate to see how stable
the COSI is in comparison.
Flexible
Payment Schedule Your Dollar mortgage is available with very flexible options under
The Pick-a-Payment™ solution. Each month you will be able to vary your payment within
certain parameters. You will enjoy live access to your loan via the Internet giving you
the freedom to choose the amount of your mortgage payment. This financial flexibility can
provide substantial monthly cash-flow benefits.
Save a Fortune in
Interest Payments How the Equity BuilderSM
loan works to save you money. With this loan, the monthly payments are divided
approximately in half and paid every two weeks. The loan's 26 biweekly payments each year
pay off a loan faster than 12 monthly payments. You gain equity more rapidly, own your
home years sooner, and save thousands of dollars in interest over the life of the loan
compared to a similar 30-year monthly-payment adjustable rate mortgage. How much you save
will depend on the amount you borrow and the interest rate on your loan. But we guarantee
that interest savings with an Equity BuilderSM
loan will be substantial, compared to a similar 30-year monthly-payment ARM with the same
rate.
Easy, automatic
payments The easiest way to ensure you build a US credit history and never
have to worry about making timely mortgage payments is to link your mortgage loan to the
checking account of your choice and have payments deducted automatically. In the US this
is called "Instapay" or ACH and is equivalent to your direct debit system in the
UK.
Fixed Rate Option You may have the option of adding a Fixed Rate Option to your
dollar mortgage. This feature will allow you at any time between month 37 and month 84 of
your mortgage to opt for a fixed rate for the remaining term of your mortgage. This is
accomplished with a simple telephone call requesting the feature and the payment of a $200
conversion fee at the time of conversion. Your fixed rate will be the FNMA 60-day rate
plus 55 basis points. You can check the FNMA rates daily simply by clicking here.
