Washington Mutual’s badly timed venture into the subprime has left the bank in a seriously bad way, with shares prices falling, not surprising when we see that Washington Mutual (WaMu) had $3.33 billion loss and a supernova of loan loss provisions to nearly $6 billion, net charge-offs came in at more than 3.5 percent, these figures added to the percentage of non-performing loans making up 3.62 percent of total assets, it’s very clear that WaMu are walking a thin dangerous line.

Wa Mu held more than $60 billion in home equity loans and lines of credit in the last quarter, these stand behind secured mortgages that are not looking to good either.

You have to feel for Alan Fishman he had only been in his new position as the CEO of WaMu for three days when the shares tanked 60 percent. So what are the options for WaMu and how can Fishman aid the troubled bank, it doesn’t mean its all over for them, look at Freddie Mac and Fannie Mae, they have managed to keep going even if at the expense of the share holders.

Find out what the guys over at Motley Fool have to say and read the full article.

Some mortgages allow for you to pay a different amount in one month to what you had paid before then if you have a good month you are able to pay more. All the lender cares about is, as long as it all evens out and the end. Having a flexible mortgage does seem like the way to go in this current climate; it is a lot like a normal mortgage you can have it as a repayment or as an interest only, you can even take the loan out as a discounted or tracker rate and a fixed. The main difference with the flexible mortgage is it allows you to have more control over your payments. The great thing about this is the fact that when you first took out your mortgage you might have been on a low income, then you might have got a great pay increase so you can then pay more each month, this will then reduce the interest you pay as you will be paying your debt of quicker.

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