You see, even refinancing can be found through the internet. Indeed, there are a lot of companies that offers refinancing. There are also huge competitions, so the customers have large amount of selection. So if you are looking for a mortgage broker or bank online to apply for a mortgage, you have t
Internet has a lot to offer. It actually opens its door that is why it is possible to sell anything online.
You see, even refinancing can be found through the internet. Indeed, there are a lot of companies that offers refinancing. There are also huge competitions, so the customers have large amount of selection. So if you are looking for a mortgage broker or bank online to apply for a mortgage, you have to use the internet to find the best deal.
There are times that people are quite concern about sending their personal information into the internet. Since there have been some identity theft happening nowadays. So this is actually a great concern to others. But you do not have to worry, since there are some practical ways to protect your identity. The first thing you should do if you are looking for company, you can verify the credibility of the company with the Better Business Bureau. In this way, you can find out how they have treated their customers in the past. In doing so, you will be able to see the background of the company and you would know how they treat their clients.
One more advantage of getting mortgage online is the speed. In getting mortgage online, there are no need for making appointment or manage schedules. Only the closing deal is the thing you can not do over the phone or by email. You see, for people who are always busy, getting mortgage online is the best thing since there are no need for them to go to any mortgage office to get or apply for a mortgage.
Another advantage you can get in online refinancing is the competitive rates. Since there are a lot of competitions online with this kind of business, there are actually many companies offering such services, so chances are you’ll be getting low interest rate. There are a lot of companies that will give you plenty of options or different firms’ quotes for you to choose from. If you are already contented with a particular company but another company is offering you lower interest rate, then you can ask the other company its firm’s quote, and find out if it will match to the first firm’s quote.
It is very easy and quick to get online mortgage quote. You actually can do the process from your home, which is comforting on your part. In getting mortgage online, you do not have to go at mortgage office and deal with lender, make some appointment and schedules.
You can receive lower interest rate by an online mortgage company, than you can get with some traditional mortgage office, which is actually another advantage of getting mortgage online.
If you feel that the quote you receive is good, then chances are it is really a good one. But in order to avoid yourself from difficult situations, you have to make sure that you will be with a trustworthy and reputable company.
Indeed, getting mortgage online is great to a lot of people. Actually, a lot of people are really turning to the internet for their finances. Since there are a lot of advantages that you can get in getting mortgage online.
About Author
Eliza Maledevic from http://www.Jump2top.com, a SEO Company.Know more about Florida Real Estate at http://floridamortgagebroker.us,
florida-mortgage.xon.us & www.usalendinginc.com
Wednesday, May 16, 2007
The Basics Of Mortgages
A mortgage is a loan that is availed from a lender such as a financial institution, credit union, or bank to buy a property, residential or commercial.
A mortgage is a loan that is availed from a lender such as a financial institution, credit union, or bank to buy a property, residential or commercial. The base of a mortgage is that if the borrower does not pay back the sum borrowed the lender will take away the property and recover the money by selling it.
A mortgage has two main aspects the principle or capital, that is the sum borrowed and the interest charged on the borrowed sum. In a mortgage what happens is that the property purchased is kept as collateral by the lending institution.
The basics of mortgages are:
1. A mortgage is amortizing, which means monthly payments made towards the principle amount borrowed and interest due will pay back the loan in a fixed tenure of time.
2. The tenure of a mortgage loan is usually 10, 15, 30, 0r 40 years and the length of time is determined depending on the age and capabilities of the borrower. However a mortgage must be paid back in say 10 years as a longer tenure means larger amounts will be paid to the lender as interest which may sometimes exceed the principle sum borrowed.
3. Many mortgages require a down payment of say 20% of the sum borrowed.
4. Most lenders of mortgage loans require that the loan is covered by a private mortgage insurance, government insurance, or guarantee.
5. Interest rates on mortgages vary and 15 year loans have lower interest rates than 30 year loans. Interest rates can be fixed or floating and depend on the kind of loan chosen.
There are many kinds of mortgage loans:
• Conventional mortgages are not insured by the government. Loans with a down payment of less than 20% will require insurance to protect the lender. In depth information on conventional mortgage loans is at Fannie Mae and Freddie Mac websites.
• FHA-Insured mortgage loans are integral to the US Department of Housing and Urban Development initiatives. This gives low downpayment loans to those who cannot afford downpayments. The downpayment is usually just 3% of the loan amount. But here the mortgages are for low cost housing. Information on such programs is at the HUD website.
• VA-Guaranteed Loans are for those in military service and requires no downpayment. More information on this is at http://www.homeloans.va.gov/ .
• Rural Housing Service Loans are for those who need homes in rural areas. There are special schemes for low-income people too. Generally these mortgages are at lower interest rates.
• State Housing Finance Loans are for first time home owners and are at lower interest rates than that prevalent in the market.
• ARM or Adjustable Rate Mortgages are mortgage loans where the interest rates changes according to financial market movements such as Treasury bill rates. These loans are offered by banks and other lenders.
When you are thinking of buying a house or a commercial real estate property you need to first learn what mortgages are and find out what will suit you best. Study mortgages, your personal finances, future plans, and your housing needs before setting out to buy a property. Think of long-term and not immediate needs.
About Author
Barry Allen is a freelance writer for http://www.1888mortgages.com , the premier website to find best mortgage rates, home equity, investments, auto, Credit Cards, cash out refinancing, home loans, home equity loans and many more. His article profile can be found at the premier Home Loans site http://www.1844homeloans.com
A mortgage is a loan that is availed from a lender such as a financial institution, credit union, or bank to buy a property, residential or commercial. The base of a mortgage is that if the borrower does not pay back the sum borrowed the lender will take away the property and recover the money by selling it.
A mortgage has two main aspects the principle or capital, that is the sum borrowed and the interest charged on the borrowed sum. In a mortgage what happens is that the property purchased is kept as collateral by the lending institution.
The basics of mortgages are:
1. A mortgage is amortizing, which means monthly payments made towards the principle amount borrowed and interest due will pay back the loan in a fixed tenure of time.
2. The tenure of a mortgage loan is usually 10, 15, 30, 0r 40 years and the length of time is determined depending on the age and capabilities of the borrower. However a mortgage must be paid back in say 10 years as a longer tenure means larger amounts will be paid to the lender as interest which may sometimes exceed the principle sum borrowed.
3. Many mortgages require a down payment of say 20% of the sum borrowed.
4. Most lenders of mortgage loans require that the loan is covered by a private mortgage insurance, government insurance, or guarantee.
5. Interest rates on mortgages vary and 15 year loans have lower interest rates than 30 year loans. Interest rates can be fixed or floating and depend on the kind of loan chosen.
There are many kinds of mortgage loans:
• Conventional mortgages are not insured by the government. Loans with a down payment of less than 20% will require insurance to protect the lender. In depth information on conventional mortgage loans is at Fannie Mae and Freddie Mac websites.
• FHA-Insured mortgage loans are integral to the US Department of Housing and Urban Development initiatives. This gives low downpayment loans to those who cannot afford downpayments. The downpayment is usually just 3% of the loan amount. But here the mortgages are for low cost housing. Information on such programs is at the HUD website.
• VA-Guaranteed Loans are for those in military service and requires no downpayment. More information on this is at http://www.homeloans.va.gov/ .
• Rural Housing Service Loans are for those who need homes in rural areas. There are special schemes for low-income people too. Generally these mortgages are at lower interest rates.
• State Housing Finance Loans are for first time home owners and are at lower interest rates than that prevalent in the market.
• ARM or Adjustable Rate Mortgages are mortgage loans where the interest rates changes according to financial market movements such as Treasury bill rates. These loans are offered by banks and other lenders.
When you are thinking of buying a house or a commercial real estate property you need to first learn what mortgages are and find out what will suit you best. Study mortgages, your personal finances, future plans, and your housing needs before setting out to buy a property. Think of long-term and not immediate needs.
About Author
Barry Allen is a freelance writer for http://www.1888mortgages.com , the premier website to find best mortgage rates, home equity, investments, auto, Credit Cards, cash out refinancing, home loans, home equity loans and many more. His article profile can be found at the premier Home Loans site http://www.1844homeloans.com
6 Rules That Decide Mortgage Loans
All over the world people buy homes or invest in real estate by taking mortgage loans. Banks, financial institutions, insurance companies, credit unions, and mortgage bankers offer individuals a large number of options for home loans.
All over the world people buy homes or invest in real estate by taking mortgage loans. Banks, financial institutions, insurance companies, credit unions, and mortgage bankers offer individuals a large number of options for home loans. In each case, the term of the loan, the interest rate, and so on fluctuate based on changing financial market conditions and a real estate boom.
Most home loans or mortgages are standardized to comply with rules formulated by government bodies known as The Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Government National Mortgage Association.
In the olden days the bank or institution you borrowed from lent the money from their own pool of funds. Today the system has changed. Most home loans come from three major institutions:
• The Federal National Mortgage Association.
• The Federal Home Loan Mortgage Corporation.
• The Government National Mortgage Association.
The place you apply for a loan is just the service provider the actual loan is owned by one of the three above. The service provider pools many loans and sells them to one of the big three and just earns a regular fee for taking care of your loan. The big three in turn use the loan parcels and form mortgage backed securities that are sold on Wall Street to generate more funds. Examples of such securities are “Ginnie Mae Bonds.” However there are exceptions, loans above USD 333,700 do not conform to the guidelines established by the big three and such loans are known as non-conforming loans which are backed by different investors.
Every financial service provider uses a loan origination process which begins with receipt of a loan application and ends in the loan being sanctioned through an agreement reached between the borrower and lender.
The process includes:
1. The application duly completed.
2. Validation of application and credit scoring of borrower.
3. Gathering of information from third parties such as land title authority and insurance companies.
4. Risk analysis and pricing.
5. Underwriting procedures.
6. Completion of terms and conditions and signing of an agreement.
If you want the process to be smooth with no hitches you need to ensure:
That your application form is completed in full with all relevant documents attached. Always request a mortgage consultant or the loan office at the lending institution to check that you have completed all essential formalities.
Get a complete set of documents from the seller of the house and if possible buy a property that has a clear title deed and no outstanding loan payments.
Get a credit report from an established agency and check the report for errors and accuracy.
Prepare a detailed financial statement that establishes your ability to pay back the loan. Attach copies of your tax returns.
Apply for a loan with a bank or finance company where you have an account and on going relationship. When a lender knows you and is sure he can trust you the machinery will move smoother.
Get a co-obligant for the mortgage with a good credit score and solid financial standing.
Apply for a loan that you can afford. Never ask for more than you can pay back comfortably.
When applying for any loan or mortgage understanding the loan process will enable you to complete the formalities much quicker.
About Author
Barry Allen is a freelance writer for http://www.1888mortgages.com , the premier website to find Mortgage, mortgage lender, home mortgage, mortgage rates, mortgage quotes, mortgage calculator, Mortgage Company, mortgage loans and many more. His article profile can be found at the premier Home Loans site http://www.1844homeloans.com
All over the world people buy homes or invest in real estate by taking mortgage loans. Banks, financial institutions, insurance companies, credit unions, and mortgage bankers offer individuals a large number of options for home loans. In each case, the term of the loan, the interest rate, and so on fluctuate based on changing financial market conditions and a real estate boom.
Most home loans or mortgages are standardized to comply with rules formulated by government bodies known as The Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Government National Mortgage Association.
In the olden days the bank or institution you borrowed from lent the money from their own pool of funds. Today the system has changed. Most home loans come from three major institutions:
• The Federal National Mortgage Association.
• The Federal Home Loan Mortgage Corporation.
• The Government National Mortgage Association.
The place you apply for a loan is just the service provider the actual loan is owned by one of the three above. The service provider pools many loans and sells them to one of the big three and just earns a regular fee for taking care of your loan. The big three in turn use the loan parcels and form mortgage backed securities that are sold on Wall Street to generate more funds. Examples of such securities are “Ginnie Mae Bonds.” However there are exceptions, loans above USD 333,700 do not conform to the guidelines established by the big three and such loans are known as non-conforming loans which are backed by different investors.
Every financial service provider uses a loan origination process which begins with receipt of a loan application and ends in the loan being sanctioned through an agreement reached between the borrower and lender.
The process includes:
1. The application duly completed.
2. Validation of application and credit scoring of borrower.
3. Gathering of information from third parties such as land title authority and insurance companies.
4. Risk analysis and pricing.
5. Underwriting procedures.
6. Completion of terms and conditions and signing of an agreement.
If you want the process to be smooth with no hitches you need to ensure:
That your application form is completed in full with all relevant documents attached. Always request a mortgage consultant or the loan office at the lending institution to check that you have completed all essential formalities.
Get a complete set of documents from the seller of the house and if possible buy a property that has a clear title deed and no outstanding loan payments.
Get a credit report from an established agency and check the report for errors and accuracy.
Prepare a detailed financial statement that establishes your ability to pay back the loan. Attach copies of your tax returns.
Apply for a loan with a bank or finance company where you have an account and on going relationship. When a lender knows you and is sure he can trust you the machinery will move smoother.
Get a co-obligant for the mortgage with a good credit score and solid financial standing.
Apply for a loan that you can afford. Never ask for more than you can pay back comfortably.
When applying for any loan or mortgage understanding the loan process will enable you to complete the formalities much quicker.
About Author
Barry Allen is a freelance writer for http://www.1888mortgages.com , the premier website to find Mortgage, mortgage lender, home mortgage, mortgage rates, mortgage quotes, mortgage calculator, Mortgage Company, mortgage loans and many more. His article profile can be found at the premier Home Loans site http://www.1844homeloans.com
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