Mortgage Broker vs Mortgage Lender

Mortgage Broker vs Mortgage Lender

Mortgage Broker vs Mortgage Lender A Mortgage Broker does only one thing and that is to shop for the best deal possible on mortgages.  Meet your local licensed mortgage broker. He’s not a big corporation or a bank. A Mortgage Broker cannot do car loans, trade stocks, or offer checking and savings accounts.  A Mortgage […]

What Is A Qualified Mortgage?

Qualified Mortgage

As this video explains, ‘Federal laws put into effect in 2014 and ‘supervised by the Consumer Financial Protection Bureau’define lending practices and loan terms for a new category’called ‘Qualified Mortgages.’ They provide stable loan features for consumers’and improve legal protection for lenders’who follow the guidelines. These guidelines require lenders to assess’each borrower’s ability to repay […]

What Is “Prime”?

What Is

The Prime Lending Rate – sometimes just called ‘Prime’ ‘- is the interest rate that banks charge each other for overnight loans. Some consumer rates – like ARMs – are set in relation to Prime. In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent […]

What Happens If Interest Rates Decrease And I Have A Fixed Rate Loan?

Interest Rates Fall

Like the video shows, if interest rates drop significantly you may want to investigate refinancing. According to the US Dept of Housing & Urban Development most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one refinancing […]

What Are Discount Points?

What Are Discount Points? Unlimited Mortgage Lending

Discount points allow you to lower your interest rate. While this video simplifies things to help you remember, ‘points’ are essentially prepaid interest with each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage the interest rate is reduced by 1/8 (or.125) of a percentage point. When […]

How Large A Down Payment Do I Need?

How Large A Down Payment Do I Need? Unlimited Mortgage Lending

There are mortgage options now available that only require a down payment of 5% or less of the purchase price. You’ll see some pictures in this video to help you remember later – the larger the down payment, the less you have to borrow and the more equity you’ll have. Mortgages with less than a […]

What Is Loan To Value (LTV) And How Does It Affect The Size Of My Loan?

What Is Loan To Value (LTV) And How Does It Affect The Size Of My Loan? Unlimited Mortgage Lending

While this video simplifies things to help you remember, the loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 75% LTV loan on a home priced at $100,000 you […]

What Types Of Mortgage Loans Are Available?

What Types Of Mortgage Loans Are Available? Unlimited Mortgage Lending

This video tells you about the most common types: Fixed Rate, ARM, Balloon and 2-Step. First, Fixed Rate Mortgages: Payments remain the same for the life of the loan generally 15 years or 30 years. Interest rates remain the same, so payments are predictable. A second common type is an Adjustable Rate Mortgage, or ARM. […]

What Are The Advantages Of 15- And 30-Year Fixed-Rate Mortgages?

What Are The Advantages Of 15- And 30-Year Fixed-Rate Mortgages? Unlimited Mortgage Lending

For both, as we show you in this video, compared with other options, ‘with fixed rates, housing costs won’t be affected by interest rate changes and inflation. With A 30-Year Term: In the first 23 years of the loan more interest is paid off than principal meaning larger tax deductions. As inflation and costs of […]

What Is A Mortgage?

What Is A Mortgage? Unlimited Mortgage Lending

The original phrase ‘mort gage’ translates as ‘death pledge’! But as this video explains, a mortgage is a loan obtained to purchase real estate. The “mortgage” itself is a lien – a legal claim on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal […]