Types of Mortgage Lenders Offering Various Types of Mortgage Loans
People who are considering buying another home and looking for mortgage finance requires a mortgage lender to take care of their requirements. But the million dollar question is what type of lenders one would contact for the purpose. For prospective borrowers current mortgage market trends and types of lenders would be essential knowledge to earn.
Different Types of Lenders
Different types of lenders are there providing home loan and such other mortgages for the prospective borrowers. Common among them are -
* Mortgage bankers who are the kind of lenders who can create a pool of loans for the prospective borrowers in search of home equity loans and others. Examples of this type of loans are Wells Fargo Mortgage and Countrywide Home Loans that come under this type of lenders.
* Mortgage brokers are business companies who provide loans with the purpose of brokering the borrowers into wholesale lending institutions. Brokers create relationship with mortgage lenders and create contact between the lender and the borrowers.
Different Types of Mortgage Loans
Once the borrower decides on the type of lender he or she will stick to, the next step would be deciding on the type of mortgage finance he or she is going to have. Different mortgage rates, principles and repayment schedules are applicable for different loans. Any mortgage lender will offer different types of loans for the prospective borrowers. However in order to get the best mortgage, it is necessary that the borrowers understands the types of loans available for them.
Major Mortgage Loan Types
Major types of mortgage loans available for the borrowers are -
* 30 years fixed rate loans which is the traditional and most conventional among the mortgage finances. Basic feature of this plan is that loan repayment quantum remains the same throughout.
* Adjustable rate mortgage is another widely used mortgage loan where the rates continue to change over the period of loan. While it remains lower during the first 1-10 years depending on the mortgage contract, higher mortgage rates become applicable after the period.
* Interest only mortgage is the one where the borrower pays only interest every month for a fixed period till they start paying the principal back. If the real estate market rises, the borrower will be the gainer.
* Balloon payment mortgage is where the borrower only pays a certain percentage of the loan. At the end of it he or she complies with repayment with balloon payment.
An informative and educative website like Lender Street can provide all required information on the topic.
Different Types of Lenders
Different types of lenders are there providing home loan and such other mortgages for the prospective borrowers. Common among them are -
* Mortgage bankers who are the kind of lenders who can create a pool of loans for the prospective borrowers in search of home equity loans and others. Examples of this type of loans are Wells Fargo Mortgage and Countrywide Home Loans that come under this type of lenders.
* Mortgage brokers are business companies who provide loans with the purpose of brokering the borrowers into wholesale lending institutions. Brokers create relationship with mortgage lenders and create contact between the lender and the borrowers.
Different Types of Mortgage Loans
Once the borrower decides on the type of lender he or she will stick to, the next step would be deciding on the type of mortgage finance he or she is going to have. Different mortgage rates, principles and repayment schedules are applicable for different loans. Any mortgage lender will offer different types of loans for the prospective borrowers. However in order to get the best mortgage, it is necessary that the borrowers understands the types of loans available for them.
Major Mortgage Loan Types
Major types of mortgage loans available for the borrowers are -
* 30 years fixed rate loans which is the traditional and most conventional among the mortgage finances. Basic feature of this plan is that loan repayment quantum remains the same throughout.
* Adjustable rate mortgage is another widely used mortgage loan where the rates continue to change over the period of loan. While it remains lower during the first 1-10 years depending on the mortgage contract, higher mortgage rates become applicable after the period.
* Interest only mortgage is the one where the borrower pays only interest every month for a fixed period till they start paying the principal back. If the real estate market rises, the borrower will be the gainer.
* Balloon payment mortgage is where the borrower only pays a certain percentage of the loan. At the end of it he or she complies with repayment with balloon payment.
An informative and educative website like Lender Street can provide all required information on the topic.
