Mortgage loans are frequently for 15 to 30 years
period of time. In mortgage loans interest rates are considerably lower than
the credit card interest rates. Using mortgage loan services you will be able
to lower your monthly payments and can gain better credit rating by making
repayment. Credit scores here indicates risk of offering loan to borrower. Good
credit scores also lower the rate of interest.
A mortgage loan is a kind of loan which can
provide you a considerable amount of money by taking any property as security
of the loan. Mortgage loan is also useful for those who want to buy a home and
mortgages are available through more different lending agencies. Now a days
mortgage loans are available through internet also that is online , because as
the internet has broad market place of mortgages according to the requirement
of an individual.
Types of Mortgage loan to choose in 2014
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30 year
Fixed Rate loans : These loans are widely recommended for several years and
still there is no change in 2014 also. Several reasons are there for these
loans to be most favorable.
-
In these loans firstly you will be able to lock
the lower interest rate while the market rate will be going up. You can secure
the rate lower than 4.8 % otherwise if you will wait for the fall in 2014 , you
will have to accept the rate of 5 % or possibly higher than that. Another
advantage of these loan is that they have low monthly payments , this will not
only give you financial flexibility but will also lower the risk of losing the
home.
-
Generally these loans are recommended for those
individuals who plan to keep their
property for long term. If this is your future planning then enjoy the perfect
stability and you will be reaching your goals eventually.
Another is Hybrid loan , hybrid mortgage loans are still favourable in 2014
despite of the risk due to rising of the interest rates , interest rate will be
fixed for the set period of 2 to 5 years. The main advantage of this loan is
that you can lock interest rate which approximately one percent lower than on a
fixed rate loan. So you will enjoy your lower interest rates , low monthly
payments which increases your stability and affordability for short term.
Mainly hybrid mortgage loan is for
those who are planning to remain on the property for no longer than 7 to 10
years and for those who expect steady growth in their income.
Mortgage
Loan Processing
Mortgage loan processing involves
a series of steps which is completed within a period of ten weeks. Here
mortgage loan processor sees the entire process while borrower follows the
instructions which is given by the lender. Mainly there are four stages to
complete the entire mortgage loan processing.
-
Apply for
mortgage : Firstly for applying for a mortgage loan we have to locate a
suitable lender , and then will have to fill the application form completing
all the blank spaces and have to submit to the mortgage processor . The
processor will instruct you to submit certain documents which may include bank
statement, Income tax return etc .. These all things are done via mail so it
can be delayed.
-
Verification
of documents : Documents are then verified by the loan processor ,it will
check all the documents and might call land lord or your bank employer for the
verification .If you complete preapproval step and fulfill all the requirements
then they will send the file to lender .This procedure may take 14 days.
-
Underwriting
the loan : This is the approval stage where documents are again verified by
underwriters , anytime they have a power to accept or reject borrower’s file .
If the file is accepted it is returned to the loan processor with a pre-closing
statement and if the file is rejected it is send to the loan processing
department with a statement of denial.
-
Closing
stage : When loan processing department and underwriters both are satisfied
with the file , mortgage loan execution will enter closing stage . In some time you will
get the loan commitment from lender so that you can set the date of loan
closing.
