3 Great Reasons Why You Need A Mortgage Broker For Your Home Mortgage

Buying a home is never easy and often involves many complex transactions, but that is exactly why you really need a mortgage broker way before you even find a home to buy!

Even though there are plenty of great homes on the market, buying a home can be an exercise in frustration if you are not equipped with some very important tools. And one of the most important of these tools is a qualified, professional mortgage broker - preferably a local person in the city in which you are planning to buy. He or she is the "money person" you will need if you are taking out a mortgage on the property. And, when you do find that perfect home, you want to be ready to make a solid offer and to be able to close quickly.

Here are three reasons why I think you need a professional for your home mortgage..

Your Mortgage Broker will Save You Money

Your professional loan broker will shop around to find you the absolutely best combination of interest rates and closing expenses, based on your qualifications and needs. He or she has access to literally hundreds of mortgage companies who will quote rates and expenses for your home loan. Then your broker will choose the loan package that best suits you and your needs. Your broker will be able to get pricing from far more sources than you can working alone - practically guaranteeing that you'll save money.

Your Mortgage Broker will Save You Time

If your life isn't busy enough already, how about adding the process of finding, securing, qualifying for a mortgage - by yourself - to your long list of tasks? If you're like most folks, merely the thought of yet another task just may bring tears to your eyes.

Your local mortgage professional is efficient and does this for a living - let him or her take those chores from you. You will thank me for this alone!

Your Mortgage Broker is Looking Out For You

Sure, it's true - your local broker will earn a fee once your loan has closed. But, you do not pay that fee - the lender pays it and it is definitely earned. There is something else that many overlook - the fact that your mortgage broker is looking out for you. It's his or her job to steer you into an appropriate loan for your needs and your ability to afford. He will not suggest loan packages that are inappropriate for you, nor ones that you cannot afford.

7 Tips to Get the Best Mortgage Deal

Getting a mortgage is a big step in everyone's life where you have the responsibility of a big investment that will stay with you for a long time. To get the most out of this investment, it's important to get the best mortgage deal around. It doesn't matter if you are a young professional looking to get your first property or a long-time investor wanting to add another mortgage to your list, everyone wants the best deal they can get.

In order to get started properly, there has to be a lot of thought and planning done ahead of time. Getting the best mortgage deal isn't something that will come overnight, because random unorganized plans may have you paying high interest rates and a mortgage that will take several decades to pay off.

Avoid the stress and hassle by considering seven simple tips to get yourself the best mortgage deal for a bright financial future.

Assess Yourself

Take a close look and list all of your debts and payments throughout the year. Look at the number of big-ticket items and loans or credit cards that you still have to pay off and how long it will take to do so. By writing out a list of everything you have to make payments on, you will be able to clearly see if a mortgage is realistic in your current situation or not.

If you find that another loan is not something that you would be able to handle at the moment, find out which steps you can take to make your situation better for the mortgage you desire.

Pay Your Bills

One of the biggest problems that many people have is the need to get the best mortgage deal but with a low credit rating. Most people get a low credit rating due to large outstanding payment needs for things like credit cards.Paying off the credit cards first will not only give you a higher credit rating but it will also give you more freedom to save a higher amount for your down payment.

List Your Desires

Make a quick list of the ideal properties that you would like to get. Do some research and see how much those particular properties (on average) are priced at. This is another way to see how realistic your goals are with your current financial standing. If they do not match up well, set your sights on something more affordable or find out how you can improve your standing to get a chance at what you ultimately would love to have.

Get a Low Rate

Getting the lowest rate possible is the main goal for the best mortgage deal. In order to get that low rate, it's important to have a good credit rating. It also doesn't hurt to have a good amount for down payment since that will translate to a lower amount that you will have to borrow.

If you don't have time to raise your credit rating or down payment amount, always remember to shop around. No one should ever go to one bank and accept the rate they offer, especially for such a big investment that will carry on into the future. Go to several different places to see the rates they offer and choose the best mortgage deal for you.

Consider Payment Options

There are different payment options available for mortgages and each one is made to suit one person or another. Look over your options and calculate each one to see which one is best. Some payment plans are made to be convenient and others are more specific to help you pay off your mortgage faster over time.

Although payment convenience will certainly take a load off your mind over the years, choosing the payment option that will help you pay off the debt in a shorter amount of time should be carefully considered.

Read the Fine Print

There are many different clauses and fine print when it comes to serious matters like a new mortgage, so it's very important to read everything thoroughly and understand exactly what you will get and what's expected of you. Knowing the fine print will save you from making an expensive mistake and the stress from unexpected occurrences.

Ask the Experts

If you are unsure about where you should begin or would like to get professional advice for the best mortgage deal that you can get, it's always possible to talk to a mortgage broker. They are experts in the field and know all there is to know about the places to get a good rate, the best plans to make payments and can explain all of the fine print in detail to ensure you understand everything before making that big investment.

5 Benefits to Using a Mortgage Broker

Are you ready to start exploring your financing options for purchasing a home? While there are many different types of loans available to select from, one of the first things you will need to determine is whether you want to work with a mortgage broker or with a bank. Here's a look at some of the benefits associated with working with a broker rather than a bank.

Benefit #1: A broker Works for You

Perhaps the greatest benefit to working with a mortgage broker rather than a bank is the fact that the broker works for you. When you go to a bank to secure a mortgage loan, the bank specialist is solely concerned with the interest of the financial institution. The mortgage broker, on the other hand, is looking out for your best interest as he or she searches for the loan and institution that is best for you.

Benefit #2: Choose from a Wider Variety of Institutions

When you go to a bank to inquire about a mortgage loan, the bank specialist is only representing one financial institution. When you work with a mortgage broker, on the other hand, he or she works with a wide variety of different institutions. As a result, you have a broader range of loan options to select from. Not only can this help you get the best rates, but it also increases your chances of obtaining approval even if you have poor credit.

Benefit #3:brokers are Highly Trained

While bank specialists do not require any formal training or license, the same is not true of mortgage brokers. In fact, most Provinces require mortgage brokers to meet a strict set of requirements, Furthermore, mortgage brokers must be licensed and must complete continuing education courses in order to remain licensed in most Provinces. As such, you can be sure the mortgage broker you work with is current on the latest real estate and mortgage financing rules and events.

Benefit #4: Reducing Credit Report Inquiries

Each time your credit report is pulled by a lending institution, your credit score may take a hit. When you work with a broker, your credit report only needs to be pulled once in order to recommend the best options. If you go to multiple banks, on the other hand, your credit report will be pulled each time you inquire into a loan.

Benefit #5: Submit Your Information Only Once

After you have submitted all of the necessary information to your mortgage broker, he or she will pass all of the required information on to those mortgage lenders that might be a good fit for you. As such, you are able to submit your information to multiple lenders while only filling out the necessary paperwork one time.

Compare Realty Mortgage Rates On The Internet Before Applying

Many property owners take a realty mortgage using their property as collateral. The lender need not know what the loan is going to be used for. It could be to buy a new property, make repairs on existing property, pay children's tuition fees or be used for medical expenses. The borrower has to be very careful and be sure they absolutely need the loan before applying for one. Make sure the repayment terms are comfortable and you can meet them without defaulting.

If you take a realty mortgage and default in payment, you can end up losing your home. For example, a homeowner can use his or her property to take a loan and use the amount to finance a new business venture. If the business does well, then he will be able to payback the loan amounts comfortably. On the other hand, if the business goes bust and he loses the money, he may find himself unable to repay the mortgage amount, lose his house and be left on the streets with no work and no home. Hence taking a realty mortgage is a very critical decision.

Lenders always make sure the borrower has assured monthly income before approving the mortgage amount. If property prices are high in the place where you live, it is beneficial, for you can get a very good loan amount. Make sure you get a professional appraiser to value your property before applying for the realty mortgage so that you get the best loan amount. A home loan calculator can be used to check what your liabilities will be before you go ahead and apply for the loan.

There are a few steps that can be followed to get the best realty mortgage.

• You must have a good credit rating to qualify for a loan
• Thoroughly research different lending institutions to ensure you get the best possible terms
• Use the internet to compare rates of different financial institutions
• Make a list of a few promising companies and take time to visit them and get a clearer picture about the type of mortgage they offer and the terms and conditions.

If you do not have the time to visit lending institutions, then get the help of an established realty broker who can guide you to the right lender. Whether you seek a home loan for a new home or a realty mortgage on an existing property, remember the lender will take over the title deed of the property and hold it until the loan is fully paid up. If the borrower defaults, the lender has the right to foreclose the loan and repossess the property. He then has the right to sell the repossessed property and use the sale proceeds to recover his loan amount.

This is why using a home loan calculator before getting a loan is a smart move. By using this calculator, you can exactly know how much loan amount to take and what the monthly installments will be. Based on your present salary and expected expenses, you can determine whether to go ahead and take the loan. A higher loan amount will mean higher rates of interest and higher monthly installments. So be extremely careful and don't take too high an amount if you cannot afford to pay it back.

A home loan calculator is a marvelous online tool for those who need to know how big a loan they can afford, how much income you will need to be eligible for a specific loan amount, whether to take a fixed or adjustable rate of interest, period of the loan and more. Remember realty mortgages or home loans are usually long term commitments of at least 30 years. Calculate your age and see if you can still be able to continue your repayments in the future. Some people seek home refinance options if the prevailing interest rates are low and use the new loan to payback existing home loans.

There are different types of home loans available and for those who do not qualify in the regular way, there are 'no credit check' loans. Lenders will be willing to offer home loans without a check for bad credit. Instead, they can run a background check for employment status, address, family background, if the borrower has filed for bankruptcy and such. If the individual passes the required criteria, the bank or financial institution will approve the home loan.

Tag : mortgage,mortgage rates,applying

Use A Mortgage Calculator To Secure The Best Rate

This article explains a few things about free mortgage calculators, and if you're interested, then this is worth reading, because you can never tell what you don't know.

Mortgage brokers are blossoming in the current environment and are gaining an increasing share of the mortgage market. This is great news because you should consult with a mortgage professional when you're making one of the most important financial decisions of your life. Mortgage brokers had to be able to sell their mortgages to someone. They could only produce what those above them in the distribution chain wanted to buy. Mortgage companies and homeowners alike are eagerly anticipating its arrival.

Mortgage markets in the United States in recent decades have done a remarkable job of intermediation between those different needs. Mortgage servicers are middlemen who process the mortgage payments from homeowners and direct the money to the banks or investors who hold the loans. With the current problems in the mortgage market, banks and the federal governments have reached consensus to help homeowners, but often the mortgage servicers, having the ultimate power to modify a mortgage, refuse to "play ball."

Now that we've covered those aspects of free mortgage calculators, let's turn to some of the other factors that need to be considered.

Mortgage arrears, County Court Judgments (CCJs), defaults or bankruptcy are all troubling points, and so, prior to making their decision, the lenders will consider these also. This information is held by credit reference agencies, and can take up to six years to clear. Mortgage bankers may also service mortgage loans (maintain the loan accounts and collect mortgage payments). Some mortgage bankers may also broker the loans of other companies.

Mortgage brokers do not work for one particular lending institution while loan officers generally do, there are other differences that may affect the type of loan that you will be offered. The easiest and simplest way to understand the difference between a mortgage broker and a loan officer is that a loan office works for you bank and will help you secure a loan from that lending institution and a mortgage broker will search through many institutions to find a loan that works best for your situation.

Mortgage debtors can be included in the aid program from January 1 of this year, until the end of 2010. The program itself will exceed this period. Mortgage rates thus, it will ensure a sound completion of the mortgage process and leave you at peace for the rest of your life.

It never hurts to be well-informed with the latest on free mortgage calculators. Compare what you've learned here to future articles so that you can stay alert to changes in the area of UK mortgages.

Tag : mortgage,mortgage calculator,mortgage broke,mortgage rate,mortgage loan

Million Pound Mortgages On The High Street - Maximum Mortgage Limits

Finding and arranging a large mortgage used to be easy. Lenders used to fall over themselves to arrange a million pound plus mortgage and many had specialist high value departments who offered a premium application service to their well healed prospects.

Falling house prices, funding issues, bank closures and mergers and the FSA’s proposed guidelines on income requirements and interest only mortgages have left a gap in this market and many people looking for a large mortgage come up against barriers which can turn even the most simple application into a major challenge.

Over the next few weeks, Enness Private Clients will explore each of the issues and give some useful guidance along the way. Topics will include income requirements and self certification, interest only mortgages, property types, buy to let mortgages and offset mortgages

We will however start with:

Maximum Loan Amounts

Funding constraints caused by the drying up of the wholesale credit market and increased capital requirements have left lenders short of money to lend. This has been well documented and government intervention was required to (some say not fully) improve the situation.

As a result, many high street lenders imposed limits on the maximum mortgage they will grant, instead focusing on a higher number of individual mortgages which both spreads risk and improves profitability (Ten £100k mortgages will generate 10 arrangement fees, One £1m mortgage will only generate one arrangement fee. The margin on the loan will be the same).

A quick survey of the high street lenders and their published products shows the limits - Nationwide £1m, Santander £1m, Woolwich £1m, Coventry £1m, Birmingham Midshires £1m. Some of these lenders will exceed their published maximums in some circumstances, but the application will have to be strong, the loan to value below 70% and occasionally there will need to be an existing relationship between the clients and the bank.

A one million pound mortgage is a lot of money and will require an annual family income in excess of £200k - so this is not a problem which affects or is an issue to very many people. There are however more than 132000 properties valued at more than £1m in the UK, an increase of 393% in the last decade (The Independent, 11 July 2001). There is therefore a solid market for these mortgages

So where are these lucky individuals getting their mortgages? This has been a major shift in the market and is the Private Bank who has stepped in to help.

Private banks work on a case by case basis and mortgages over £1m are not an issue if the application supports it. These lenders assess on a case by case basis and the application is often more detailed than a similar one on the high street so the decision to lend is justified. Private Banks are delighted to be collecting so many high valued clients in so much as we have been approached by more than 5 new lenders in the last month who have requested we offer their products to our clients.

The problem for the borrower is that these lenders very rarely advertise (you will never see Coutts at the top of the best buy table in the money section for example!) so access can be difficult. The banks often have minimum entry requirements (such as a minimum asset level) and their criteria is very seldom listed on their website so finding the right one may involve a round of interviews before the client can find one suitable. As a result, the client will almost certainly require the help of a Large Mortgage Broker.

Tag : mortgage,mortgage calculator,mortgage rates,mortgage refinace

4 Steps To Achieving The Largest Mortgage Possible On Your Circumstances.

Many mortgage lenders in the Uk have moved to ‘affordability based lending’ from the traditional ‘income multiple’ Essentially, the lender will subtract your total monthly expenses away from your total monthly income - the amount that is left must be enough to cover the monthly payment according to their calculations.

For many, the maximum mortgage available from a particular lender may be difficult to establish – some lenders have tried to improve certainty by publishing ‘affordability calculators’ on their websites, but to get the right result you need to know what to put in the boxes in the first place.

1 – Credit Commitments

Always declare the exact amount you have outstanding on loans and credit cards (remember HP agreements and car loans), the monthly payment and how long is left to run on your agreement.

The monthly payment on a loan or minimum payment on your credit card (assuming a rate of around 5% of the balance per month) can have a major affect on the affordability calculation. If your loan has less than 6 months to run, or you are able to settle in full some lenders will not include the payment in their calculations

2 – Income - if you are Employed

Being as precise as possible on your income is very important, overstating is never wise and not being accurate is just as bad. Always use the numbers off your payslips, bank statements and your and P60 as this is where the lender will look for evidence of your income.

If there are deductions from your salary other than tax & NI (season ticket loan or a pension) make sure you mention these at the point of application - some lenders may deduct these from your income and some don’t. Being accurate at the outset will reduce the chances of a lower mortgage offer than you expected which could cause problems if you are aiming for your maximum mortgage.

Bonuses, overtime, commissions and second jobs are used at different rates by different lenders. Most will only accept 50% (less for annual bonuses) and there will need to be a track record of usually a couple of years. Again speak to your broker or lender for advice.

3 – Income – if you are self-employed

You may be surprised to hear that self certification and fast track mortgages have become slightly more difficult to find. All this means in reality is that you will have to do a little more work than finding a broker who was stupid enough to make up your income for you!

If you are self-employed lenders will want to see at a minimum your last 2 years tax returns and SA302s (as your accountant if you don’t know what this is.) Typically they will average the last 2 years taxable income and use this figure as the start point on their affordability calculation.

If you are a director of a limited company (or partner in an LLP) the lender will, in most circumstances, use your salary and dividend (or net drawings) not your share of net profit. This distinction is very important (unless you own more than 51% of the shares in which case the rules are different).

Our advice is get your accounts before you apply and read through them. Alternatively, ask your accountant to write down your net profit, salary, dividends or drawings for the last 3 years on one page so you can see them.

If you are self-employed, getting advice from a good broker will make all the difference – many of the lenders we speak too still cannot read a simple set of accounts and some of the better ones will be able to convince a lender to use retained profit or accountant’s tricks in their calculations/

4 – The Mortgage Term

How much you can borrow depends on how much you can pay back per month. Your monthly payment depends on how long you arrange your mortgage over. Lenders (almost) always base their calculations on a repayment basis to your retirement age. Before you apply find a mortgage payment calculator and find out how much your mortgage will be over various terms and find the one which is most suitable to you.

Remember – the longer the term, the more you can borrow. The shorter the term, the less it will cost you in interest. The latter is the most important.

Tips For Locking in the Best Home Mortgage Rate

Tip #1: Always Shop For Home Mortgage Rates

Don't blindly accept a Realtor or Builder referral to apply for a Home Mortgage through their preferred lender. Many times they will say, "We work closely with this guy and he gets the job done". Translation: "We play golf together and he buys the beer". Remember, the Realtor won't be paying the bill each month for the next 30 years, you will.

Mortgage Loan Officers that work off of a referral network of Realtors and Builders don't have to have competitive Home Mortgage Rates because they have a steady stream of "Drones" (people who are referred to them and don't shop) calling them. Shop around, get the lowest cost Home Mortgage Rate, then if you are inclined, approach the "preferred" Loan Officer you were referred to and ask him to match the quote.

If you apply for a Home Mortgage through a preferred lender without shopping, you will pay hundreds or even thousands of dollars in additional costs.

Tip #2: Call For Home Mortgage Quotes After 11:00 a.m. Eastern Time

Mortgage Rates change each day and sometimes midday. The previous day's rates typically expire by 8:30 a.m. the next morning. Generally, Home Mortgage Rates are published each day by 11:00 a.m. Eastern time. This varies from lender to lender. To make sure you are getting Home Mortgage Rates from the current day and not a mixture of rates from the previous day from some lenders and the current rates from other lenders, always do your rate shopping after 11:00 a.m. Eastern time.

Get all your quotes after 11:00 a.m. Eastern time.

Sometimes Home Mortgage Rates change midday due to a volatile bond market. When this happens, some Home Mortgage Lenders will adjust the Discount Points for their rates in accordance with the new bond prices and publish new Home Mortgage Rates for that day. Other Lenders may continue to honor their morning rates.

Tip#3: Always Tell The Mortgage Loan Officer You Are Prepared To Apply For A Loan NOW

If you are buying a home, tell the Home Mortgage Loan Officer you are Rate shopping and you have a "ratified contract" to purchase a house. Tell him you intend to make a decision and Lock-In a rate on that day, but you have to check a few other lenders. If he asks you how his rates compare to the others, tell him he's the first person you've called. If you are refinancing, tell the Home Mortgage Loan Officer you are ready to apply for a Refinance Home Mortgage today. If you don't tell him that, he may provide a fake Home Mortgage Rate quote.

Loan Officers know you will probably talk to another lender with lower Home Mortgage Rates and the only way he can be sure for you to call him back is to give you a fake quote that appears to be the lowest. He's expecting you will rate shop for several days and figures you will call him back in a day or two because he provided a low, bogus rate quote. Also, since Home Mortgage Rates change daily and are subject to change at any time, he's not concerned about giving you a fake quote.

How will you compare quotes if you don't know which quotes are real and which are part of a bait and switch plan? The only way to ensure getting real quotes is to box in the Home Mortgage Loan Officers by making them think you are ready to Lock-In a Home Mortgage Rate immediately.

Tip#4: Ask For The Total Points And The Total Fees

When you call a Mortgage Lender, ask for the "Total Points" (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Rate. Some lenders will only quote the Discount Points and deliberately leave out the Loan Origination Fee. You won't find out about the 1.00 Point Loan Origination Fee until you apply for the Home Mortgage. By that time, the Loan Officer figures you will just accept it because he's got your application and pulled your credit report. In addition, Mortgage Brokers often neglect to mention their Broker Fee.

Some lenders do not charge a Loan Origination Fee.

When you are quoted the Total Points, specifically ask them if there is an additional Loan Origination Fee or Broker Fee being charged. You truly have to nail this down when you talk to a Home Mortgage Loan Officer.

Also, ask for a list of ALL other fees that will appear on the Good Faith Estimate that you will be paying to the Lender or Broker. Make sure they include their Credit Report and Appraisal Fees. Some lenders charge one lump sum fee and that includes the Credit Report and Appraisal Fees while other lenders will itemize each fee. Keep it simple and ask for all fees, including the cost of the credit report and appraisal fees.

Don't get confused by Title Company, Attorney Fees or Escrows. A lender will estimate these on your Good Faith Estimate, but these charges are not related to costs associated with a Mortgage Rate quote. The amount required for your escrow account will not change from lender to lender and Title Company and Attorney Fees are not being charged by the lender. Don't include them in your comparison.

Tip#5: Always Confirm The Rate Lock Period When Asking For A Rate Quote

If you are buying a home and you need 60 days to close, make sure you specifically request Mortgage Rate quotes with a 60 Day Lock period. Some Home Mortgage Loan Officers will quote rates with 15 Day or 30 Day Lock periods because the Discount Points for shorter lock periods are less than rate locks for longer periods. Quoting a Home Mortgage Rate with a 15 Day lock period obviously gives that Loan Officer an unfair edge. It is also a waste of your time because the quote isn't real if you can't settle on your loan within 15 days. Always specify a 60 Day Lock-In if you are buying a home. Ask for 45 Days if you are refinancing, but you may be able to get it done within 30 days if you are very diligent and call your Home Mortgage Loan Officer twice a week for a status of your application.

If your rate lock expires, the lender will re-lock you at the higher of either the original rate or the current rate when you decide to re-lock. That's a LOSE/LOSE situation for you. Never let your rate lock expire.

Tip#6: Compute The Dollar Cost Of The Points And Add All Fees

After you've spent some time talking to a bunch of Mortgage Loan Officers, you will have lots of Rates, Points and Fees on a sheet of paper. You will need to compute the dollar cost of the Points (multiply the mortgage amount X the Total Points expressed as a percent; For example, multiply 400,000 mortgage amount X.625% for.625 Points). Then add the dollar cost of the points to the Total Fees. You can then compare each Home Mortgage Lender's Total Cost (dollar cost of the points + all lender related fees) for a given rate. That will show you which Home Mortgage Lender has the lowest cost Home Mortgage Rates.

If Mortgage Insurance (not to be confused with mortgage life insurance) is required on a Conventional Home Mortgage, ask for the cost per year expressed as a percent and compare it from lender to lender. Some lenders require different levels of coverage and this will affect your monthly Mortgage Insurance payment. In addition, lenders use several different mortgage insurance companies and they charge different rates for their coverage. The lender will select the mortgage insurance company.

The cost of Mortgage Insurance can vary from lender to lender even though most Home Mortgage Loan Officers will say, "We don't determine the Mortgage Insurance coverage, Fannie Mae and Freddie Mac do". Your can just say, "Please humor me and provide the Monthly Mortgage Insurance expressed as a percent".

You will want to check the quoted percent with what is on your initial application documents and final loan documents to make sure the Monthly Mortgage Insurance payment isn't higher than what you were quoted. If it is, get it reduced immediately. If they won't do that, then ask them to reduce your Home Mortgage Rate by.125% and that should cover the difference.

If you are getting a government insured mortgage (FHA or VA), you don't have to get into a comparison of the FHA MIP or the VA Funding Fee. This is a cost you will be paying, however every lender MUST use the same costs, so there is no reason to attempt to compare these costs from lender to lender.

Tip#7: When You've Found The Lowest Cost Rate, Apply and Lock The Rate

While you were looking for houses or thinking about refinancing, you may have shopped around and gotten some quotes from lenders and narrowed down your search to the best 5 Home Mortgage Lenders or Brokers. But when it is time to apply for your Mortgage, make sure you update your quotes for the 5 lowest priced Home Mortgage Lenders. After you identify the Home Mortgage Lender with the lowest cost rate, call and apply for the loan. Tell the Home Mortgage Loan Officer you want to Lock-In your Home Mortgage Rate and apply NOW. If the quote has changed since you updated your quotes a couple of hours before, tell the Loan Officer you want him to honor the previous quote. If he won't do it, tell him you may call back. Then call the next cheapest Home Mortgage Lender on your list. If that lender tells you the same thing, you can go back to the first lender and proceed with the application process.

Before you provide your application information, make sure the Home Mortgage Loan Officer agrees to provide you with an actual Rate Lock confirmation via email or fax on the same day you apply for your loan. When you receive the Rate Lock confirmation, check it and make sure you are Locked-In for the number of required days (30, 45 or 60), with the correct Loan Type (30 Year Fixed, 15 Year Fixed, etc.), with the correct Total Points quoted. It's normal for a lender to require you to apply over the phone before they will Lock-In your Home Mortgage Rate.

TIP#8: Never Float The Rate

If the Mortgage Loan Officer thinks you might be inclined to FLOAT your Rate and Points, he may say, "I think the rates are going to be coming down, so you might want to FLOAT". Remember this, never FLOAT your Home Mortgage Rate. Never. Always Lock-In the Rate and Points. If you FLOAT, and the Discount Points for Home Mortgage Rates drop, you will only realize the benefit of a small part of that drop in the Points, if any at all. The Home Mortgage Loan Officer will keep the rest of the savings as a fat commission.

Here's how they increase their commission when you FLOAT. Originally, the lender quoted 4.875% with 1.00 Total Point when you applied for your loan. Then 45 days later you called to Lock-In. Keep in mind that over the 45 day period that you were FLOATING, the actual Points for 4.875% dropped to.250 Total Points. So you should have saved.75 Total Points on your 4.875% rate. Right? No! First, you don't know if his company's points have dropped or by how much they might have dropped. So, instead of giving you 4.875% for.250 Total Points, the Home Mortgage Loan Officer tells you his rates only dropped a little bit. He says you can Lock-In 4.875% for.75 Total Points. You are happy because it is.25 lower than what it was when you applied for your loan, but the Home Mortgage Loan Officer is ecstatic because he keeps half of the "overage" you paid. That overage is.50 points and he splits this with his company. If the mortgage amount was $400,000, he just earned.25% which is an additional $1,000 commission. That's not bad for a five minute phone conversation.

If you FLOAT and the Discount Points for Mortgage Rates increase, you will pay for the increase. FLOATING is a LOSE/LOSE proposition for you and a WIN/WIN for the Home Mortgage Loan Officer.

Some companies quote very low rates and attract lots of applications, but they don't let you Lock-In until 15 Days prior to loan closing. If you apply for a Mortgage through a company with that policy, you will get screwed. When it's time to Lock-In your Mortgage Rate, you will pay an "overage" that will go straight to the Mortgage Loan Officers pocket. You will either pay more points for the rate you requested at the time of application or you will get a higher rate. Either way, you will get screwed and the Loan Officer will get a fat overage added to his commission.

Tip#9: Get a Final Good Faith Estimate Several Days Before Loan Closing

Get a copy of the Final Good Faith Estimate at least a few days before the scheduled closing day. Check the Mortgage Rate, Points, Fees and Monthly Mortgage Insurance Premium (if applicable). Make sure you are getting exactly what you bargained for. Ask questions if you don't understand something. Demand that previously undisclosed fees be removed from the Final Good Faith Estimate. Make sure you get a revised estimate if the Mortgage Loan Officer verbally agrees to make changes.

The day of loan closing is the wrong time to haggle over discrepancies.

Article Source: http://EzineArticles.com/?expert=Mick_Taylor

Types Of Mortgages Available In Canada

In Canada there are two types of mortgages available to residential borrowers, one being a conventional mortgage and the other is a high-ratio mortgage. Within both types of mortgages there are two sub-types, which are either open or closed mortgages.

To clarify the various options one can be presented with when shopping for a mortgage this article is divided into two parts;

Part one deals with the difference between a conventional mortgage and a high-ratio mortgage and part two deals with the different sub-types of mortgages available within the two types. However, these are fairly generic explanations - just as there are many different lending institutions, so there are almost as many different varieties of mortgages available. This is another good reason to consult a mortgage broker. Depending on your situation, one type of mortgage may be better for your circumstance than another.

CONVENTIONAL MORTGAGE:

If you have at least 20% of the purchase price (or appraised value if this is lower than the purchase price) as a down payment, you can apply for a conventional mortgage.
Some lenders may require either CMHC, Genworth or AIG insurance as well because of the property's location or type, even though you have 20% or more equity.

LOAN TO LENDING:

to 65% 0.50%

65.1 to 75% 0.65%

75.1 to 80% 1.00%

80.1 to 85% 1.75%

85.1 to 90% 2.00%

90.1 to 95% 2.90%

95.1 to 100% 3.10%

Please note: Insurance premiums are higher when the amortization is greater than 25 years or if there is more than one advance. This usually happens if you are building your house or having it built for you. Check with your Mortgage Broker to learn what the applicable premiums will be.

The insurance premium is calculated by multiplying the mortgage amount needed by the applicable percentage.

For example:

If the purchase price is $112,000 and the required mortgage is $100,000. You divide 100,000 by 112,000. This equals 89.29%.

Looking at the above chart - the premium is 2.00% when the lending ratio is 89.29%.
The next step is to multiply the mortgage amount by the insurance premium. Using our example this means $100,000 X 2.00% = $2,000. Your actual mortgage loan will therefore be $102,000.

CMHC's 5% DOWNPAYMENT PROGRAM was originally for first-time homeowners, but was expanded in May 1998 and is now available to all purchasers (principal residence only) who meet the normal requirements. Furthermore, borrowers can now even borrow up to 100% of their purchase price under new CMHC's Flex Down Insurance Program.

CMHC may set maximum purchase prices under these programs depending on the city so check with your Mortgage Broker to learn what the price limits are in your area.

If the property is a duplex (and you are buying both sides), with one side being owner occupied, the minimum down payment is 5.0%.

Mortgage brokers and lenders must verify that the borrower has the 5% down payment and 1.5% of the purchase price to cover closing costs. The only exception to the 1.5% is when the purchaser qualifies for an exemption of the Land Transfer Tax (Ont.) or Property Transfer Tax (B.C.), or similar provincial tax exemption. In these cases the mortgage broker or lender must ensure that there are sufficient funds available to cover all remaining closing costs.

OPEN MORTGAGES:

An open mortgage allows you to pay off part or the entire mortgage at any time without penalties. Open mortgages usually have short terms of six months or one year. The interest rates are higher than those for closed mortgages with similar terms.

VARIABLE RATE MORTGAGES / ARM (ADJUSTABLE RATE MORTGAGES):

At the start of a variable rate mortgage, the lender will calculate a mortgage payment that includes principal & interest. For the term of the mortgage your payments usually do not change. However, as the prime rate changes so will your mortgage rate.

If interest rates are dropping, less of each payment will go toward interest and more will go toward principal. If interest rates rise, more of your payment will be interest and less money will be reducing your principal.

Some of these mortgages are completely open (you can pay off all or part of your mortgage at any time without penalties). Others that offer a 'prime minus' interest rate (e.g. prime - 0.375%) may charge a penalty.

The interest rate on most variable rate mortgages is compounded monthly.

CAPPED RATE MORTGAGES:

These are variable rate mortgages that the lending institution has rate 'capped'. In other words, the rate will fluctuate with prime, but the institution guarantees that you will not pay more than a certain interest rate, set by them.

These mortgages often have a penalty for early 'payment in full' and are often not portable.

CLOSED MORTGAGES / FIXED RATE MORTGAGES:

The expression 'closed mortgage' originates from the 1980's when this type of mortgage was literally 'closed'. You contracted to the lender to make your payments for the term chosen, you could not pay anything additional, nor could you pay off the entire amount for any reason except the sale of your property.

These days, there are many ways to pay down your mortgage principal quicker, though the name 'closed' mortgage still remains. See pre-payment options for ways to pay off your mortgage quicker.

Fixed rate mortgages are the most popular type of mortgage. You benefit from the security of locking in your mortgage interest rate, for lengths of time ranging from 3 months up to 25 years. The rates are slightly lower than for an open mortgage for the same term.

If you think interest rates could rise, you may want to choose a longer term, such as a 5 or 10 year term. If you think that rates are going lower, you may want to gamble on a shorter length of time. Discuss this with your Mortgage Broker.

The major lending institutions have different pre-payment options allowed under their contracts. These options allow you to pay off your mortgage faster. It is also possible to pay off most closed mortgages prior to the end of the term or pay down a portion of the balance owing. However, lenders charge penalties for doing so.

Please note that some lending institutions will not give any pre-payment options. It is wise to find out what options are available before entering into any mortgage contract.

CONVERTIBLE MORTGAGE:

These are fixed rate mortgages for terms of 6 months or 1 year. Not all lending institutions offer convertible mortgages. With a convertible rate mortgage you can lock into a longer term during the current term of your mortgage without penalty - but only with the same lender. For example, if after a couple of months you hear that interest rates are going to increase, you may change to a longer term mortgage such as the 5 year term.

REVERSE MORTGAGE:

CHIP - Canadian Home Income Plan is the name of the company providing reverse mortgages in Canada.

A reverse mortgage allows homeowners to convert equity in their homes into cash, without selling the property or having to make monthly payments.

To qualify, homeowners must be at least 62 years old, have significant equity in their property and live in B.C. or Ontario.

The amount that can be borrowed depends on the homeowner's age. Reverse mortgages are for between 10% and 40% of the appraised value of the home. The older the homeowners, the more they can borrow.

The homeowner retains ownership and possession of the house. The lending company registers a reverse mortgage against the property. At death, or when the house is sold, the loan and the accrued interest must be repaid.

The biggest disadvantage to reverse mortgages, is that the interest keeps building on the amount of money borrowed (hence the maximum 40% loan). This means that if you borrow $50,000 this year and your interest bill is $5,000, next year your interest will be charged on $55,000 and so on. The longer the loan is in place, the greater the interest bill that has to be paid.

It is possible that when the house is sold, 100% of the proceeds from the sale may be required to pay off a loan.

If the homeowner dies the estate will have to pay off the loan and the accrued interest. This may wipe out any inheritance for the homeowner's heirs.

An alternative is to establish an equity credit line. This allows you to take funds only as you need them, thereby owing the least interest possible, with no surprises.

Consult with a financial advisor for more alternatives.

Article Source: http://EzineArticles.com/?expert=Victor_Borges

Mortgage Plain-talk: What's the Difference Between "amortization" and "term"?

There are many stresses associated with home buying - both financial and emotional. And frankly speaking, it doesn't help that the process comes with its very own foreign language. While your mortgage broker can help de-mystify these terms, it helps to have a bit of a primer on what some of these terms mean. After all, it's your money and your home we're talking about; as a Mortgagor, you have a right to understand what you're reading. (You didn't know you were a mortgagor? Read on...)

We'll start with Amortization" and "Term". Both refer to periods of time in the life of your mortgage, and you'll want to be sure that you understand the difference.

The amortization" of your mortgage is the length of time that would be required to reduce your mortgage debt to zero, based on regular payments at a specified interest rate. The amortization period is typically 15, 20 or even 25 years, although it can be any number of years or part-years. You could establish that you are able to make a certain payment each month of say $950 for your $130,000 mortgage at 5.5%. In this case, your amortization period will be just under 18 years. Or you could tell your broker that you'd like to be mortgage-free in just 10 years. With an amortization period of 10 years at the same interest rate, your $130,000 mortgage will cost you about $1,407 per month. That's a tougher monthly payment, but you would save thousands of dollars in interest. (More than $35,000, in fact.) As you arrange your mortgage, then, keep in mind that your amortization period may be fairly long -- although the shorter you can make it, the less you'll wind up paying for your home in the long term.

The "term" of your mortgage will typically be shorter. The "term" is the duration of your mortgage agreement, at your agreed interest rate. This will be a very specific length of time, although you will have several choices. A 6-month mortgage is a very short-term mortgage. A 10-year mortgage will be one of the longest terms, generally with a higher rate of interest to represent the higher degree of uncertainty in the economic outlook. After your mortgage term expires, you will need to either pay off the balance of the mortgage principal, or negotiate a new ontario mortgage at whatever rates are available at that time.

Now, back to the term "Mortgagor". This is one of three very similar terms: "Mortgagee", "Mortgagor", and "Mortgage". A Mortgagee is the lender of the money: a bank, company, or individual. A Mortgagor is the borrower: the person or persons (or company) that is borrowing the money, and who will pay it back to the mortgagee. The Mortgage, of course, is the legal document that pledges the property as a security for the debt.

Still confused? Speak with a mortgage professional. Get the best mortgage suited to your needs and all your questions answered in plain talk.

Tag : mortgage,mortgage rates,mortgage refinance

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Online Mortgage In UK - Introducing The Best Mortgage Plan Across UK

Add the term ‘online’ and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So many people want to get mortgage programme and get with it fast. The online mortgage in UK indisputably takes lesser time and simplifies the entire procedure. Online mortgages have furthered favourable association of circumstances for any mortgage hopeful in UK.

The British Banker’s Association has put the figure of approved mortgage as 186,442, making mortgage the largest financial obligation. Online mortgage is the largest undertaking and a very integral part of the loan lending industry. The online trend with regard to mortgages has spelled great benefits for the consumers for it has increased competition among the loan lenders. This shift in the business trend towards online mortgages has provided more control in the hands of the homeowners in UK.

There is huge competition between online mortgage lenders. There are numerous mortgage lenders, all trying hard to offer you a mortgage plan. Its direct result is great mortgage rates and repayment options. Online, you can contact multiple lenders for mortgage and this will enable you to compare rates and also provide you with an excellent opportunity to select the mortgage that befits your requirements.

Online mortgages have certainly revolutionized the concept of mortgaging in UK. Internet has introduced people to a new face of mortgage process totally alien previously. A few years ago, a mortgage would have required you to find a mortgage lender or broker who would be ready to do the leg work for you, who would be willing to compose a good mortgage proposal for you. Without the online process, assembling information and drafting loan programmes would be a very demanding job. There was no way that the people could access generalized information about mortgage and interest rates. Without online mortgage, the alternatives were restricted and borrowers would settle for any mortgage lender.

So, what does the online uprising affect for general homeowner in UK? Advantages – in every way. Online mortgage in UK gives you several instruments to not only understand mortgage but also pick up the one mortgage that fits exactly in your financial configuration. All kind of mortgage information is available online which can be easily accessed sitting at home through the computer. You are exposed to hoards of information about mortgage, online.

With online options, you can actually look at the various deals offered by various UK mortgage lenders. Online, you can access financial tools to make mortgage more in sync with your demands. Financial advice, mortgage rates, mortgage calculator, and comparing mortgages online allow you to achieve the best in respect to mortgages.

With online mortgages, it is highly important to know that inadequate or false information would only work against your chances of finding a mortgage. Accuracy while providing details of your employment, your credit history, income and assets would only put you in a favourable light in front of the mortgage lender. This will help in online processing of your loan application and being approved without any setback. However, be prudent enough to offer your personal financial information only when you are filling the mortgage application form.

A UK homeowner while applying for mortgage online should not settle for the company just because it happens to publicize lower interest rates. Borrowers, applying online, must be careful about the website they are applying at. A mortgage offering website would contain a privacy policy. Go through it, if you have time. Also, confirm whether the website actually exists. A genuine online mortgage lender will have real people answering your questions when you call.

Other things to look out for are upfront fees and read the fine print before you settle on any mortgage deal in UK. Fine print can contain many details that are left otherwise. Ask questions, if you have any doubts. Queries about the online mortgage process – whether there are any fees that will be charged later on, pre payment penalties. If you don’t understand anything or are uncertain, clear them before you move on.

How technology affects our life - you know that. How it affects our mortgage decisions – it is evident through online mortgages. With internet we can access various mortgage product, services, connect to almost all mortgage deals available online. It has enabled us to overcome limitations; it has stretched the possibilities of finding a mortgage beyond the local area. If your local area doesn’t have a mortgage for you, you can shop; go beyond the local boundaries to find a mortgage in any part of UK. With so many mortgage options available online, the chances of your finding a mortgage are undoubtedly bright.

Tag : mortgage,mortgage rates,mortgage loans,mortgage in Uk

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Mortgage Quote Secrets - 3 Ways To Get The Best Mortgage Quotes

If you're in the process of buying a new home and are in need of a mortgage quote, read on. Today, the cost of owning real estate has come down along with interest rates, making this an excellent time to purchase a home. In this short article, we'll be discussing 3 tips for finding the best mortgage rates. Hopefully by the time you're finished reading this, you'll be better prepared to sign on the dotted line.

The first way to get a mortgage quote is through your bank. At the bank, you'll be assigned to an individual who will walk you through the application process. Also, be sure to look carefully at any and all fees on your home loan.

The second way to get a mortgage is through a credit union. Many people dread having to deal with banks, so a credit union offers a nice alternative. Once again, you'll be assigned to a mortgage broker who will walk you through the application process. Credit unions often offer better mortgage rates and terms, so this might be worth a look.

Last but not least, you can look online for a mortgage quote. There are many websites on the Internet that will provide you with free quotes, but you need to be careful who you provide your personal information to.

Hopefully this short article has provided some helpful tips on how to get the best mortgage quotes. Purchasing a new home is a big decision, but choosing a lender can be equally important. Take your time to shop around and compare lenders, your wallet will thank you for it.

By: Jason Averill

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Tag : mortgage,best mortgage,refinance home mortgage

Mortgage Rates: The New Way To Uncovering Timely Information

A borrower is not always required to visit their bank or a mortgage lender only to see the current day's home mortgage loan rates. That's the archaic way of doing things. The more convenient way is getting it on the internet, which makes getting mortgage rates a whole lot faster and easier. The feat can be done in under five minutes at the convenience of your home or even phone if you have internet access on the phone.

Getting a mortgage loan rate from an online mortgage website can be very advantageous to homeowners due to the reasons that follow:

Advantages:
1. You receive a quick response from reputable mortgage lenders and brokers as compared to your typical bank with limited programs inside of 24 to 48 hours.
2. Online consumers get the benefit of receiving multiple interest rate quotes which permit you to analyze and compare rates, fees, pros and cons offered by each company.
3. You will have a pre-approved home loan mortgage rate quote much before you have chosen a home. This becomes extremely helpful and letsyou know the mortgage loan amount you are qualified to get based on your salary or self-employed earnings as well as other credit and financial criteria.

A mortgage loan typically covers a large quantity of items such as a mortgage for buying a home, refinancing a mortgage, a mortgage for home equity, debt consolidation mortgage. In all of these cases involving various loan types, the home you get or already have will be considered collateral for the mortgage.

For prospective mortgagees, it is strongly suggested to learn and understand mortgages better so that you can negotiate with the lender or broker for better rates and terms. Getting your home mortgage loan rate quote is just the initial phase in the process. Here are a few quick definitions of some of these terms relating to mortgages that you should get familiar with:

Good faith estimate: This is the standardized form listing all the costs, taxes and associated fees with your home refinance or purchase itemized so you will have a very close indication of what it will cost yo to obtain said loan. Moreover, some fees are negotiable so it is wise to review then check back with your loan officer of what can may be reduced if applicable.

There are basically two kinds of interest rates for home loans.
Fixed rate mortgage: The interest rates are fixed for the life-period of the mortgage loan. Your monthly mortgage payments will be fixed as well.

Adjustable rate mortgage: The interest rate is not fixed during the whole term but may be fixed for the first year or upto ten years fixed. After that, the rate may vary on a monthly basis related to the market rate fluctuations.

Tag : mortgage,mortgage rates,mortgage refinance,mortgage loan

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Choosing the Right Mortgage - Basic Mortgage Terms and Features

Choosing the Right Mortgage – Mortgage Basics

There is an astounding range of commercially available mortgage products, which makes choosing the right mortgage increasingly difficult without a firm grasp of mortgage basics. Here we try to give the consumer struggling to understand the basics of what a mortgage is, how it operates, and what features are right for him or her, the basic terms and distinctions that will allow the consumer facing an all-important mortgage decision – perhaps for the first time – to begin to choose the right mortgage from the thousands of mortgage products available on the market. But a word of caution – there is an incredible range of mortgage products commercially available. Before making a final decision on which mortgage is right for you, it would only be prudent to consult with an experienced and knowledgeable mortgage broker.

What Is a Mortgage?

A mortgage is a loan – but a loan that is secured, in this instance, against a home and/or piece of land. The person who borrows the money to buy a house is the mortgagor and the person, company or bank etc. who lends the money is the mortgagee. In most instances, the person buying the house will be required to pay some amount, perhaps as little as 5 per cent, as a down payment on the house or property. A mortgage from a commercial or private lender is secured to pay the balance of the purchase price. The mortgagee/lender provides the balance of the money to buy the house on the ‘closing date’ (i.e., the day the deal for the house is completed and the property ownership changes) and the mortgagor/purchaser pays back the money borrowed to purchase the house over time, usually over a number of years.

Key Mortgage Terms & Concepts

Amortization Period – A mortgage is written based on an understanding that the mortgagor/borrower will pay back the money borrowed over a number of years, rather than months. When purchasing a home that is typically worth several times what the purchaser earns in a year, it is understood that a the number of years will be needed to fully pay off the mortgage. The ‘amortization period” is the number of years that it will take to pay off the mortgage in full under the terms of the mortgage that is agreed to. The usual amortization period is 25 years, although shorter and longer amortization periods are available.

The amortization period sets out how long it will take to pay off the mortgage in monthly payments. Monthly payments consist of two parts – one part goes towards paying the ‘principal’ (the amount of money borrowed) and other part goes towards paying the ‘interest’ (the fee charged for borrowing the money.) The longer it takes to pay back the principal – i.e., the longer the amortization period – the greater the amount of interest that will be paid over the life of the mortgage.

Term – A mortgage agreement will not typically be for the full length of the amortization period. It is too difficult for either party – mortgagor and mortgagee – to foresee all the changes in financial circumstances over such an extended period. Accordingly, the parties – mortgagor/borrower and mortgagee/lender – will agree to a mortgage covering a specific number of years of the mortgage – e.g., 5 years. When the term of the mortgage expires the mortgagee is paid in full for the money that was borrowed to purchase the home. Typically, since it is anticipated that the mortgage will be paid off over the length of the amortization period, at the end of the term the mortgagor will have to negotiate a new mortgage – either with the initial mortgagee/lender or a new mortgagee. This process of ‘refinancing’ is normal, yet is an excellent way for prudent borrowers to re-examine their financial circumstances – for example, to see if their circumstances have changed so that they can shorten the amortization period and pay their mortgage off more quickly, thereby cutting down on the total interest they will pay in purchasing their home.

Fixed-Rate vs. Variable-Rate Mortgages – In a fixed-rate mortgage, the same interest rate is charged throughout the entire mortgage term. In a variable-rate mortgage the interest rate will change based on changes in interest rates that are being charged in the market.

Since interest rates do change based on the financial markets, risk is being assigned and the mortgage rates for both fixed-rate and variable-rate mortgages will reflect who is taking the risks – the mortgagor/borrower or the mortgagee/lender. When mortgage rates are relatively high it is the borrower who takes the risk that interest rates will not fall lower than the rate he or she agrees to for a fixed-rate mortgage. So when mortgage rates are relatively high, mortgagee/lenders will usually be willing to offer fixed-rate mortgages for a lower interest rate than the current interest rate for a variable-rate mortgage. The opposite is, of course, true. When mortgage rates are relatively low – as they are now – the mortgage/lender assumes the risk that interest rates will not go up. Since there is always the risk that rates will go up, a fixed-rate mortgage will have a slightly higher interest rate than a variable-rate mortgage when interest rates are relatively low. (The advantage of a fixed-rate mortgage is, of course, that the mortgagee will always know the cost of his or her mortgage payments over the term of the mortgage.)

Open Mortgages vs. Closed Mortgage – With an open mortgage some or all of the balance of the mortgage can be repaid during the term of the mortgage without a financial penalty. This is particularly advantageous, if the home purchaser has to move for employment or other reasons and if one’s financial circumstances change. Under a closed mortgage, no extra payments or changes in the mortgage can be made before the end of the mortgage term without a penalty being charged. Such penalties can be onerous for the homeowner who is forced by circumstances, such as a change of job, to relocate before the term of the mortgage expires.

Open mortgages can also prove to be very advantageous for the prudent homeowner who is able to make periodic payments directly to the principal owing under the mortgage. Each mortgage payment is split between interest costs and money that goes towards paying off the principal of the loan. If the borrower makes periodic payments over and above the regular mortgage payments that are required (the amounts and timing of which are usually set out in the mortgage itself), these payments directly reduce the amount owing under the mortgage. Doing so effectively reduces the amortization period of the mortgage, since in every subsequent mortgage payment more money will be going to pay off the principal of the mortgage and less money will be going towards the interest costs.

The Importance of Mortgage Advice

While this covers some of the mortgage basics that the consumer will need to choose the right mortgage product, it is important to note that there are quite literally thousands of mortgage products to choose from – each with its own intricacies and detailed terms. Accordingly, the prudent mortgage shopper should consult with someone with advanced expertise in the products and range of choices that are available on the market, given the borrower’s circumstances. An accredited mortgage broker will have the expertise and knowledge to assist the borrower in choosing the right mortgage for his or her situation. Moreover, since an accredited mortgage broker typically receives his or her fee from the lender, a mortgage broker with expertise and knowledge of the thousands of mortgages that are commercially available can assist the borrower in understanding and choosing the right mortgage from the thousands that are available at no cost to the borrower.

Tag : mortgage,mortgage rates,mortgage refinance,mortgage loan,bad credit mortgage

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Own A Full Service Mortgage Bank Cooperation With Out Stressing Yourself Out

Have you seen a net branch of any company function? There is so much happening behind the scenes and the client is never aware of it. In a similar manner when you become a retail outlet for the products of SouthWest Funding you get all those services that they can offer in the mortgage field to a loan officer loan broker as a bonus. So what are these advantages that you can look forward to? Here’s a list of the key things that you as a mortgage banker will be able to get from SouthWest Funding.

Team Support – There is a trained group of individuals who can help you do employment mortgage and with all other financial products of SouthWest Funding and all the required areas of operations in the branch. Mortgage Employment can ease you out when you have a great team working round the clock to support you. Specially when this is a highly specialized team of supporting staff who can help you with loan scenarios and lender set-up. What more could a loan officer look for in his team? For this excellent team support alone it would be worth while being associated with this company.

Multi-State Licensing – This is a major advantage that you would have compared to regular mortgage brokers. Getting mortgage licenses for so many states is difficult if not impossible for an individual, but as a branch office of SouthWest Funding it is served up to you on a platter. If you have tried getting the license on your own as an individual you will really appreciate this. Not to forget the enhanced prestige of working with a national company. You, as a member of the SouthWest Funding team get the same national brand recognition as the other branches in the country do.

Caring Parent Company – As opposed to being a direct lender it makes sense to be part of a larger company as a mortgage broker when it gives you all the benefits that SouthWest Funding does. For instance you can actually look forward to less overhead costs as a functioning unit as you will be offloading many key and expensive functions to the parent company. The areas that will get off loaded include certain infrastructure costs, accounting and payroll costs, conducting audits and other such functions. This mortgage company makes life as simple as possible for its associates.

Specialized Help for each Branch – The DO and LP automated underwriting is available in all the offices. FHA and VA approval is sought for and received by the parent company for all its branch offices. It also makes sense financially to become a mortgage broker for SouthWest Funding as they also give a 100% pay out on the fees that you earn. There is even a smaller per file administration fee that you need to pay. Plus you have the solid financial support of a well established company which will not roll over in the next financial crisis and die giving you additional tensions.

This is the best way to own your own bank and be stress free.

By: Southwest Funding

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A Commercial Mortgage Broker Can Save You Money On Your Mortgage

Even when you have taken the fact into account that you will have to pay fees for the luxury of getting help choosing your mortgage, you can still save a great deal of money with a commercial mortgage broker. One of the biggest advantages of allowing a broker to search on your behalf is the amount of time that can be saved when it comes to getting borrowing. A broker can do this easily as they will know where to look and can go directly to the lender who specialises in the type of mortgage you are looking for.

When it comes to saving time then the broker has many advantages over you looking yourself. The majority of lenders will work far more quickly with a broker. This is usually down to brokers sending a lot of business their way and if dealt with quickly the lender will be at the top of the list. However despite the many bonuses that a commercial mortgage broker can give, around 70% of those looking for commercial finance stick with high street lenders. One of the reasons could be that they do not want to add on costs or that they are too proud to let anyone know they need help.

However the costs of the broker can be outweighed by the huge savings that a they can give you. Lenders will usually give the best rate of interest to brokers through negotiation. The high street lender will almost certainly quote you a much higher rate of interest than a specialist could find you. Even if you chose to shop around yourself for the cheapest deal you probably would not have access to the same lenders that a broker does and it would take a great deal of time.

Financial matters are usually confusing and a commercial mortgage is no exception. There are terms and conditions which must be read and understood and along with this there can be hidden costs associated with the mortgage. A broker will be aware of these and also will understand the technical jargon and so choose mortgage quotes that offer the best value with no nasty surprises attached.

If you want to find a commercial mortgage broker then look online, a specialist can help to find you the best deal while at the same time offer valuable information on all aspects of commercial mortgages. However while the broker will find you the quotes for your mortgage it is down to the individual to go through the terms and conditions to ensure that they have the right commercial mortgage. Finding and understanding information can seem like looking for a needle in a haystack but it should be all laid out for you on a specialists website. Never jump into the deals that the high street lender offers until you have looked into what a mortgage broker can find for you. It can make the difference between hundreds of pounds over the term of the mortgage.

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Mortgage Companies and Brokers Can Originate Nationwide and Maintain Their Current Business

Originate Nationwide.

Net branch. Bank Branch. These topics are on the minds of most originators these days due to the internet and technology expanding the reach of the geographic restrictions that originators may have once found limiting.

The 50 state lending program is a program designed to be used by licensed mortgage brokers and their employees to accept mortgage loans that have been referred to them from all 50 states. The broker becomes an independent contractor for the bank to help originate and manage a portion of the process and be compensated for that management according to RESPA regulations.

This opens up experienced brokers and their employees to do business nationally on a level playing field with the banks!

Originators that can focus their efforts on getting loans in and less on investors and state restrictions will be able to spend more time originating loans and making money.

Origination:

The broker will originate the mortgage loan using the process and procedures provided through the 50 State Lending website. Upon approval NLC will email the new approved broker; logins to a permission based website with all the tools and procedures to help them originate the loan. Once the AUS required documentation has been accumulated by the bank's processing department, the information will be verified and forwarded to the investor for underwriting. If additional information is required by either the bank's processing department or by the investor's underwriting department, the broker will be notified and will be responsible for providing the required information. Once the loan has been approved the broker will be notified of prior to closing conditions that must be satisfied and asked to schedule a closing with his/her borrower. The banks processing department will work with the investor, the broker and the title company to ensure that all prior to closing conditions have been satisfied, the closing has been scheduled and that closing documents are prepared.

Compensation:

The broker will be compensated on Friday of each week for loans funded/purchased by Wednesday of the same week. Compensation will be 1099 and paid to the broker/mortgage company and sent by mail. Per the bank regulators, the maximum combined total discount points and yield spread premium that can be charged by a broker is 3.5%.

Requirements:

This program is available to licensed mortgage brokers and their companies nationally. Please remember that you and your employees are 'not' employees of the bank. Do not represent yourselves as employees of the bank. You and your employees are contractors for the bank. You are responsible for the actions of your employees and will be held accountable for their actions. Please remember also, that this program is offered by 'invitation only' and can be rescinded at any time. This program is unique to the mortgage industry and represents a valuable opportunity for qualified mortgage brokers giving you unlimited access to all 50 States.

About the Author

Thomas P. Kadle Manager - National Lending info@originatenationwide.com email your resume or give me a call!! 719 494-8280 Are you a loan officer looking to originate nationwide? Give me a call, I can get you setup to lend in all 50 States.

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