Archive for November, 2010
5 Sources from where you can get a mortgage loan
Everyone dreams of their own home, you may have that dream too. However, you may lack the finances that are required to make your dreams come true. This is when mortgage comes to your rescue. It is a loan that you can take out to pay for your house or the land that it is on. The house and the land are then treated as collateral to your loan.
This means that the house and land can be taken away by the lenders in case you default on your mortgage payments. So it is very important for you to calculate in advance how much you need to pay every month. For this you can take the help of loan mortgage calculator that can calculate for you this amount.
Now you must be wondering where to get a mortgage loan. There are various places you can get a mortgage, some of them are as follows.
1. From a mortgage broker: A person who does the job of bringing together the lender and the borrower is called the mortgage broker. These brokers work with 200 or more different lenders. You should know that the products offered by individual brokers will vary from one broker to another. So it is very important for you to find out about the variety of the products. In this case fees are to be paid by you or the lender or by both.
2. From a mortgage banker: Mortgage bankers work for banks and may represent more than a single bank. However, the loans that they provide are bank loans and are also funded by banks. As they are bank loans the fees is generally set by banks and is not negotiable. Another disadvantage is that the products that are offered are limited to those that the bank offers.
3. From commercial banks: You can take out mortgage from various commercial banks that also offer a wide variety of services. You must know that their main source of income does not come from mortgage loans. Their rates are competitive and you may be eligible for a discount if you maintain a savings or checking account in that particular bank.
4. From credit unions: These institutions are usually formed by a group of individuals who have common interests. They do not pay taxes and enjoy a few advantages that other lenders or institutions do not enjoy. They are thus, continually under attack from lending competitors. If you are to take out a mortgage loan from a credit union, then you should be eligible for their membership. Usually the terms and the rates of interest are very attractive.
5. From an individual: You can even take a mortgage loan form any individual who has money in the bank. However, these individuals should act in accordance with federal and state regulations when it comes to things like fees and interest rates.