Adjustable Rate Mortgage – Is it a Better Alternative?

Author: William M. Davis

What is an Adjustable Rate Mortgage (ARM)?
An adjustable rate mortgage is a mortgage loan whose interest rate varies according to the indices based on which the rates are determined. Where the interest rate varies your payment liability also varies accordingly. Any change in the index rates will call for a change in the mortgage loan rate. While determining the rate applicable for a mortgage loan a percentage called the margin is added to the index rate which is usually the cost incurred by the lender and his profit margin. Through out the tenure of the loan this margin rate remains …

Mortgage Loan – Who Should Go For It?

Author: William M. Davis

What is a Mortgage Loan?
A loan issued on the mortgage of a property by a borrower is called a Mortgage Loan. These loans are normally secured by a property and hence are issued at a lower interest rate when compared to unsecured loans. The credit worthiness of the borrower determines the rate at which the loans are issued. A bad credit borrower is issued a loan at a high interest rate while others at nominal interest rates.
The nature of mortgage loans vary depending upon the variability of the interest rates, the number of times the property under mortgage is subject …

Home Buyers – Top 8 Tips You Should Know Before Taking The Decision

Author: William M. Davis

For home buyers, it is quite important that they take every decision very carefully. Any mistake in this regard can have a negative impact on their credit rating.

1. Cost
Even if you manage to find a home of your choice, it does not mean that you will be able to afford the required monthly installments. Because of this, make sure that you contact at least one financial institution prior to indulging yourself in the home buying routine. A financial institution can pre-approve you for a loan and will give a clear cut idea of how much you can afford. With so many …

What Are The Pros And Cons Of Refinancing?

Author: William M. Davis

Refinancing is the way to go if you are paying high interest rates on your mortgage. Refinancing can be termed as a replacement loan, with a lower interest rate and a different financial institution.

Pros of refinancing

You are going to get home loan at lower interest rate.
You will be able to extend the repayment term of your mortgage. It will reduce your monthly installment appreciably.
With mortgage refinance, you can convert from a variable rate mortgage to …

How to become a successful Mortgage Broker

Author: William M. Davis

Who is a Mortgage Broker?

Any person who acts as a middle man between the lender and the borrower is called broker. Where a mortgage transaction is involved he is called a mortgage broker. He helps in bridging the technical requirements of the lending institution with the requirements of a borrower.

Role of a Mortgage Broker
The role of a mortgage broker is critical in closing any loan transaction. He strives on the commission he receives on every loan transaction closed by him. It is a career option which in reality does not require any formal schooling, but offers a six figure salaries.
An …

Mortgage Marketing – Is this a right option?

Author: William M. Davis

Mortgage Marketing
Mortgage Marketing as a business consists of three parts namely

Origination
Origination
Closure

Mortgage Origination
Hence the entire business concept of mortgage marketing is all about skillfully originating loan deals which is normally carried out by the Loan Officer or the originator. He normally uses brochures, mails and contact databases to clinch a business deal. The scale of business is indeed large when compared to the level of business managed by brokers. A mortgage bank carries out loan operations on a very large scale. Hence origination of loans runs to millions of dollars or sometimes even trillions.
Mortgage Maintenance
Mortgage Maintenance basically involves …

Top 20 Mortgage Refinance FAQs

Author: William M. Davis

Mortgage Refinancing is practical option if done at the correct time. It can help you clear your other debts as well. The money saved through refinancing can be used for expenditures like house renovation or higher education. Below are Top 20 most asked question on Mortgage Refinancing.

Can I refinance with bad credit report or should I file bankruptcy?
Refinancing will only result in high cost borrowing, considering the risk factor involved in financing a bad credit holder, which eventually one will not be in a position to repay, hence it is a good idea to file bankruptcy under chapter 13 where …