Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics

By Carrie Reeder

A mortgage is usually the biggest purchase that an individual makes, and because of that, many people tend to get nervous during the process. But wouldn’t it make things easier if you felt that you had a “handle” on the process—or at least the terminology? After all, in order to get the best deal on your mortgage loan, you will need to understand certain things such as points, interest rates and closing costs.

If you feel like you could stand to brush up on your mortgage loan terminology, why not read the following common terms and their definitions?

Points

A point is amount that a borrower will pay in order to reduce the interest rate on their mortgage. One point is generally equal to 1% of the loan amount. For example, if you were taking out a 100,000 mortgage, and wanted lower interest rates, you might have to pay anywhere from 1-3 points (or $1,000-3,000 dollars) to get that rate. It’s important to note that some lenders will advertise very low interest rates, and only when you read the fine print will you learn that you will have to pay points in order to get them.

Interest Rates

When a lender makes a loan, they make money by charging interest on that loan. With a mortgage loan, all of that interest is front-loaded, which means that for the first few years, every payment that you will make will go mostly toward the interest.

When applying for a mortgage, you will have the option of “locking-in,” or “floating” your interest rate. If you choose to lock-in your rate, then you will be assured—for about 60 days—that when you close it will be at that rate. However, if it appears that interest rates will go lower, you can choose to float the interest rate, which means that you can watch the rates carefully, and then lock it in whenever it reaches an amount that you are comfortable with.

Closing Costs

When you go to close on your home at the title company, both the buyer and seller will have to pay a pre-determined amount of closing costs. These are determined by the type of loan you get, and the area where you live. Your lender is required by law to inform you of any closing costs beforehand, so be sure to ask for your truth in lending estimate.

As you can see, mortgage terms aren’t that mysterious! Do some research or read some more articles on this site to become familiar with the lending terms that you need to know.

There are also many mortgage companies online that can help you find direct mortgage lenders and home loan brokers that will best suit your needs. This is a quick way to find a good mortgage loan and compare rates and offers from multiple lenders. When lenders compete for your business, it works to your advantage.

About the Author: To see a list of recommended mortgage loan companies online, visit this page: http://www.abcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.


Source: www.isnare.com

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The Online Mortgage Application: Make Your Life Easier

By Jason Hulott1

The Internet is an amazing tool that millions of people use around the world every day. No piece of information cannot be found on there given a little time and effort, and every company has had to catch up and create their own website in order to prosper. This also goes for financial companies. The Internet has also given rise to a new breed of independent, online only operated companies that can often undercut the bigger companies. However, the majority of those that offer mortgages have a facility for interested parties to get quote as well as make an online mortgage application.

The online mortgage application has introduced a new brand of accessibility to consumers that are looking to buy their first home or new home but do not have time to make appointments to see an advisor. Everything can be completed over the Internet, from the initial quote right through to the final stages of the online mortgage application, so you can sit in front of your computer in your own time and fill it in as and when you like. This does remove some of the stress and the pressure that is associated with applying for a mortgage to the point at which you will be surprised just how easy it actually is to get a mortgage if you sit back and let the experts work their magic!

Completing an online mortgage application has its relative advantages, which include:

• You can save your online mortgage application if you want a break and come back to it whenever you are ready. Instead of having to start all over again, you can just go back to the data you had previously inputted.

• You can often apply in conjunction with an initial quote so that you do not miss out on great rates by having to wait for an appointment.

• If you are one of the majority, you will have a very hectic lifestyle and will be unable to take time out to have an appointment with a mortgage advisor for a couple of hours. Applying for a mortgage online means that you can accomplish exactly the same thing in your own time whilst sitting in the comfort of your own home.

• An online mortgage application can really get your mortgage process in motion. It will go straight through to an advisor that can approve your application and give you an amount of money to play with.

However, despite all of the above, there are some negatives that are associated with an online mortgage application. They are mostly negligible in terms of the impact they will have on you, but you must be careful when you are deciding which mortgage product that you want. Being able to fill in an online application makes it easier to sit back and pick the first one that appeals to you. However, this one may not be right for you, so it is up to you to educate yourself before making an online mortgage applications so that you are satisfied that you got the best and most suitable product for you.

About the Author: Jason Hulott is Business Development Director at Mortgages service, PolarMortgages. Visit Polar Mortgages now for more information about UK mortgages and remortgages.

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=202782&ca=Finances

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If you have any questions at all, please respond to the blog entries.

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About the Author: Jason Wall is the owner of SKHomes4sale.com and ATHomecanada.com. His company provides an advertising avenue for home owners selling their home privately in Canadian Real Estate and thus providing buyers a great way of searching and viewing private homes for sale in Saskatchewan, Alberta, British Columbia and Manitoba. There are hundreds and hundreds of homes on the site for people who are buying their home privately.

Source: www.skhomes4sale.com
Source: www.athomecanada.com
Source: www.mortgages.athomecanada.com