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Types of Mortgage Loans

Home Mortgage Refinance Loans at a Glance

Home Mortgage Refinance Loans at a Glance

If an individual is beginning to find that it is increasingly difficulty to make his/her monthly payments, due to high interest rate, he/she may wish to consider obtaining a home mortgage refinance loan. A mortgage refinance loan can effectively change the terms of a loan, making it more suitable for an individual's needs and financial circumstances.

In the most basic terms, when people refinance mortgage loan payments, they acquire a new loan, with new loan terms, to pay the existing loan. Subsequently, the old loan will be discarded and an individual will be required to repay the new loan. In most instances, an individual will obtain a home mortgage refinance loan through his/her original lender.

Lenders do not want to risk losing borrowers' business to other companies, and therefore, they will often permit modifications to the terms of a loan. However, it is also possible for an individual to obtain a mortgage refinance loan from an external lender.

Loan refinancing is usually reserved for individuals who are not able to successfully make monthly payments, and therefore, must lower the cost of their monthly payments. It is also possible for an individual to increase the duration of his/her mortgage payment by adding years to the repayment period. This will also reduce an individual's monthly payment.

When people have a variable interest rate, they may choose to refinance their mortgage when interest rates are low, in order to obtain a low, fixed interest rate. It is important to note that refinancing is not suitable for everyone. There are often fees associate with home mortgage refinancing loans. An individual may be required to pay penalties for ending his/her loan early.

Know The Facts About California Mortgage Loans

Know The Facts About California Mortgage Loans

The cost of purchasing a home varies significantly from one state to another. This is not only because the price of houses differs depending upon location, but also because the interest rates attached to mortgage loans vary from one state to another. In addition, closing costs can be higher in certain locations. 
 
 
It is important for an individual to understand California mortgage loans before purchasing a home in California. There are also a number of laws regarding California mortgage loans that a potential home owner should be familiar with. For example, state legislation prohibits individuals from acquiring a mortgage unless they obtain consent from his/her spouse. His/her spouse may need to provide the lender with personal information if child support or alimony is included in the applicants’ income.
 
 
Currently, the mortgage rates in the state of California are increasing. In September 2010, mortgage rates jumped to 4.5%, which means that for every $1,000 included in the loan, an individual may be required to pay up to an additional $.30 every year. This can add up quickly. However, it is important to note that mortgage rates fluctuate often. Under the California Residential Mortgage Lending Act and California Finance Lenders Law, the Commissioner of Corporations is given the responsibility of granting licenses to mortgage professionals. 
 
 
These professionals are required to meet certain insurance and income requirements. Mortgage professionals are not permitted to discriminate against applicants based on race, religion, sexual orientation, or for any other reason. Applicant discrimination is prohibited under the California Civil Rights Act and the Americans with Disabilities Act, which was passed in 1990.

The Federal Home Loan Mortgage Corporation

The Federal Home Loan Mortgage Corporation

The Federal Home Loan Mortgage Corporation, more commonly known as Freddie Mac, is an enterprise that was developed by the United States government in order to ensure that the necessary monetary funds were directed at mortgage lenders. 
 
 
The corporation was created in 1970 and is owned by stockholders. It allows money to flow to lenders, so that they can provide potential homes owners with home mortgage loans. The Federal Home Loan Mortgage Corporation seeks to maintain a stabilized mortgage market, so that owning and renting residential homes is affordable for consumers. The corporation also wishes to expand home ownership opportunities, so that more individuals are able to own homes. It regulates the housing market in the United States. 
 
 
There are a number of ways through which the Federal Home Loan Mortgage Corporation stabilizes the housing market. First, it provides residential mortgages with credit guarantees. The corporation also invests in mortgage securities and mortgage loan. This helps ensure the mortgage lenders have the funds necessary to offer consumers home mortgage loans. 
 
 
The primary responsibility of the Federal Home Loan Mortgage Corporation is to meet any liquidity needs present in the United Sates mortgage market, and the provide lenders with the ability to offer consumers affordable housing. Freddie Mac has invested hundreds of billions of dollars in the housing market and has helped millions of families obtain housing in states throughout the country.

Know the Facts About Florida Mortgage Loans

Know the Facts About Florida Mortgage Loans

Due to the fact that mortgage loan rates and mortgage loan laws vary from state to state, it is important for an individual to fully understand the terms and conditions associated with mortgage loans in his/her state, before he/she applies for a home mortgage loan. The mortgage laws in the state of Florida cover all aspects of acquiring and possessing a home mortgage loan. 
 
 
These laws cover the different types of mortgages that are available, the process of obtaining a home equity loan, the various agreements associated with obtaining a mortgage, the transfer of a mortgage title, and power of sale. An individual who is applying for a Florida mortgage loan is also required to understand all laws and regulations regarding foreclosure, prior to obtaining a mortgage.
 
 
 
There are a number of different foreclosure regulations that an individual must be familiar with before he/she applies for a Florida mortgage loan. If an individual is no longer able to effectively pay his/her mortgage, and he/she chooses to foreclose the home, a lawsuit must be filed in a court. Every mortgage will be in equity when foreclosed. 
 
 
Any countered claims made against the mortgage being foreclosed will be addressed in a separate trial. The court will try all foreclosure claims without a jury. If a deficiency action is going to be filed, this must occur within a four year period following the foreclosure sale. In addition to foreclosure laws, an individual must comprehend all of the basic features of obtaining a Florida mortgage loan. It is vital to review all relevant Florida legislation.

Do You Need a Second Mortgage Loan

Do You Need a Second Mortgage Loan

If a home owner needs to acquire additional financial funds, he/she may wish to consider obtaining a second mortgage loan. Second mortgage loans are loans that a granted in addition to primary mortgage loans, using an individual's home as collateral. An individual will usually acquire a second mortgage loan from the same lender that provided him/her with his/her initial mortgage loan. A second mortgage the same way that a primary mortgage does. 
 
 
When an individual is granted a second mortgage, he/she will be provided with a certain amount of credit. He/she will be permitted to spend the amount that he/she is granted and he/she will then be required to repay this amount. Repayment occurs over an extended period of time, most frequently enduring for 15 years or 30 years. Over the designated time period, an individual will make monthly payments. These payments are usually for fixed amounts, though this may vary depending upon the type of loan an individual obtains.
 
 
There are a number of suitable reasons that an individual may seek a second mortgage loan. These types of loans are most suitable if an individual needs money for a large purchase or a one-time payment.
 
 
For example, an individual may acquire a second mortgage loan in order to purchase a motor vehicle. These mortgages can also be used to pay for home repairs, renovations, or medical expenses. For some types of financial responsibilities, specifically those which require payments over extended periods of time, such as college tuition, a home equity loan may be more appropriate.

Do You Need a Commercial Mortgage Loan

Do You Need a Commercial Mortgage Loan

When an individual considers a mortgage loan, he/she usually thinks of mortgage loans given to residential home owners. However, business owners may need to obtain commercial property in order to effectively operate their businesses, and in order to achieve this, they may be required to obtain commercial mortgage loans. 
 
 
Commercial mortgage loans work very much like residential mortgage loans. A lender will provide business owners with commercial mortgage loans, using real estate, or the property obtained, as collateral to ensure repayment. The primary difference between a commercial and residential mortgage is the property that is obtained and used as collateral. In most instances, a commercial mortgage will not be acquired by an individual, but by an entire business.
 
 
In cases of commercial mortgages, it can be more difficult for a lender to determine the borrowers' creditworthiness. This is because multiple individuals or a single large entity is involved. Like with residential property, a business will be required to make regular mortgage payments to the lender. Usually, a business will continue making regular payments over an extended period of time. 
 
 
The repayment period may be 20 years, 30 years, or a different duration specified by the lender. In some instances, commercial mortgage loans will require balloon payments, meaning that the business must repay the loan in full after a certain period of time. If a business defaults on commercial mortgage, it is likely that the lender will seize the collateral, but will be unable to pursue further action against the borrower.
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