Sunday, November 8th, 2009 at
2:04 am
A bank or a mortgage company, which offers home loans can be referred to as a ‘mortgage lender’. There are various categories of primary mortgage lenders. Here, three major categories are described in detail.
• Mortgage Banker:
A lending organization or an individual that either services mortgage loans or originate loans can be referred to as a ‘mortgage banker’.
The role of a mortgage banker is to sell mortgages to the second mortgage market soon after funding. The mortgage banker can, however, continue to service the loan. In this case, the mortgage sale would not terminate the relationship between the lender and the borrower.
A mortgage banker helps the borrowers to select the type of mortgage that will suit their financial objective.
• Portfolio Lender:
An organization is called a ‘portfolio lender’ when it uses its own funds to provide loans, and maintains a record of the loan in the organization’s books.
It does not sell mortgages to the second mortgage market. Instead, it keeps most of the mortgages for the purpose of an investment portfolio.
Such an organization is not bound by the Freddie Mac or Fannie Mae guidelines.
The portfolio loan can be sold in the second mortgage market only when it is ‘seasoned’. A portfolio loan becomes seasoned when it reaches the one-year mark without any late payments. In such a case, the portfolio lender becomes a mortgage banker who continues to service the loan.
• Direct Lender:
An individual or an organization that gets the funds for the loans from other lending organizations but makes loans in its own name is termed as a ‘direct lender’. He can either be a portfolio lender or a mortgage banker.
Other categories of primary mortgage lenders include a correspondent lender, a mortgage broker, wholesale lender, online mortgage lender, and a sub-prime mortgage lender. These are described in other related articles.
By: Eshwarya Patel
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Thursday, October 22nd, 2009 at
12:00 am
Bad credit mortgage refinance is not as hard to get as it may seem. Here, I will provide information for homeowners which will help them get approved for a mortgage refinancing, even with bad credit.
Having not good credit is not the end of your mortgage refinancing ideas. There are a number of mortgage lenders and banks who will be more than happy to assist you when your looking to change your monthly payments, change interest rates, or change terms and conditions of the home loan, or even get a cash back, through refinancing.
What a Bad Credit Mortgage Refinance will mean for you.
Having less than desirable credit does not automatically mean that you will not get approved for a mortgage refinancing, but it does mean that you will pay a higher interest rate than someone who has good, or better credit than you. Simply, the worse your credit is, the higher your interest rate will be. It is always a good decision to do some small things in an attempt to improve your credit rating prior to applying for a refinancing.
Applying for a Bad Credit Loan.
Homeowners who want to get a bad credit mortgage refinance may need to work with a sub prime mortgage lender. Most of these companies are reputable, and upstanding companies, but you will always want to do your own research and comparison shop around. The last thing that you should have to do is go through more financial problems in the future, after refinancing.
Post Mortgage Refinancing
Typically homeowner who refinance with a low credit rating get a higher interest rate than they could have had. If this applies to your situation, wait for a year or two until your credit regains its strength and refinance again.
By: Michael Petrone
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Wednesday, September 16th, 2009 at
10:48 am
Many homeowners right now can use mortgage refinancing to help their financial situation, or to save their home from being lost. A lot of those homeowners have bad credit and think that refinancing is out of the question. Well it’s not. Bad credit mortgage refinancing is easy to get, but what matters is the interest rates, terms, and conditions. Here is help with bad credit mortgage refinancing:
Many homeowners with bad credit are convinced that refinancing is almost impossible. Especially with all the talk about the tight credit markets, and banks refusing homeowners assistance they need. Well, that is not true. The fact of the matter is banks and mortgage lenders and approving and offering assistance to more struggling homeowners than ever before. However, not all of these deals are the same, especially for borrowers with shaky credit.
When refinancing with a less than desirable credit rating, the most important thing will not be getting approved, it will be getting a good interest rate. In recent years, sub prime mortgage lenders have sprouted up everywhere. While some of them are good reputable lenders, some are not. Many times a sub prime mortgage lender will attempt to take advantage of your situation and charge high fees, interest rates, and closing costs, as well as have strict terms and conditions.
Homeowners need to do some research about their personal financial situation prior to refinancing with a low credit rating. You need goals, and a budget that will improve your finances over time, so this does not happen again. Sub prime mortgage, and bad credit refinancing is very easy to get approved for. The only matter is finding an option which is truly beneficial for you and your situation.
By: Michael Petrone
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