A joint mortgage is a loan secured by real property made to more than one party based on their criteria together. It is not the same as joint ownership, and each party has equal financial responsibility for repaying the loan. It is important to understand how ownership of the property is transferred. A joint mortgage […]
A mortgage servicing company provides day-to-day maintenance services for a mortgage loan, and can take a small percentage of the interest payment. The borrower has rights when the servicing company changes, and collections can result in additional fees for the company. Foreclosure may be necessary if collections are unsuccessful. A mortgage servicing company is a […]
Mortgage yield is the return generated from a pool of mortgage-backed securities, calculated as a monthly rate by identifying the portion of payments made on the mortgages that go towards principal and interest. It helps investors compare investment potential and assess risk. Also known as the cash flow yield, the yield on a mortgage is […]
A mortgage processor processes mortgage applications, verifying materials and assembling a package for underwriters to evaluate. They may work for banks, brokers, or other financial institutions and can learn on the job or through training courses. The job requires computer skills, attention to detail, and good organizational and interpersonal skills. A mortgage processor is a […]
Mortgage fraud involves manipulating mortgage applications to benefit the buyer, seller or third party, and is punished severely in some regions. There are two types: property fraud and profit fraud, with various tactics including shotgunning and identity theft. Home buyers should work with reputable agents and banks to avoid fraud. Mortgage fraud is a type […]
Mortgage quality control ensures compliance with state and national laws. A quality control plan includes lending policies, processing approved loans, employee compliance, and protecting stakeholders. Mortgage quality control is a process used to ensure that mortgage-issuing companies comply with all state and national laws pertaining to such mortgages. Mortgage lenders and brokers are often required […]
Underwater mortgages occur when a homeowner owes more on their property than its current market value, often due to refinancing or changes in property values. This can lead to foreclosure if the homeowner cannot keep up with mortgage payments. Underwater mortgages are mortgage deals that effectively leave the homeowner with more debt on the property […]
Cooperative mortgages are loans for purchasing cooperative housing, which can be difficult to obtain from traditional lenders due to higher risks. Specialized lenders may offer better terms, but interest rates can still be high. Cooperative housing is owned by a company, and borrowers must comply with its rules. Borrowers should research their options and act […]
A secured mortgage involves using real estate to secure funds, with specific rules and terms agreed upon by the borrower and lender. It is commonly used for investment and rebuilding, and is most often undertaken by banks and insurance companies. The mortgage is kept in public records and has a fixed maturity with tranches determined […]
Homeowners can reduce taxable income by claiming a mortgage insurance deduction, but laws and eligibility vary by country. Mortgage insurance protects lenders from defaults, and borrowers pay monthly premiums. Homeowners may claim deductions upfront or incrementally, but tax authorities may limit deductions. Homeowners can also claim deductions for home repairs and property taxes, but renters […]
A mortgage buyer purchases mortgage notes from lenders, offering the note holder less than the value of the mortgage. The buyer absorbs the risk and sets the price. They can offer creative solutions, such as purchasing only a portion of the note. Note holders should shop around for the best deal. The term mortgage buyer […]
The USDA Mortgage Program provides fully funded home and property loans to qualified borrowers in rural areas. Eligibility is based on income, location, and other criteria, and the program was originally created to encourage agricultural expansion. It is considered one of the safest and most reasonable home loan programs in the US. The United States […]
Internet mortgages are loans applied for and serviced through web-based lenders. Rates and fees tend to be lower, and the process is automated. Borrowers may save money due to lower interest rates. Other websites provide clues and referrals to lenders. Refinancing, new purchases, residences, and rental properties are eligible. An internet mortgage is a loan […]
Foreign currency mortgages allow borrowers to make payments in a currency other than their country’s currency. They can save money through exchange rates and interest rates, but there is also risk involved. Managed currency mortgages can hedge against this risk, but professional help is recommended due to country restrictions. A foreign currency mortgage is a […]
Mortgage lenders use the mortgage debt ratio to determine if a borrower can make monthly payments. The ratio is calculated by dividing monthly income by expected mortgage payments. Other debts are also factored in to determine the payback ratio, which should not exceed 30%. Anything above 40% would likely result in a loan refusal. The […]
Flood insurance is often required by mortgage lenders to protect against damage to property. Buyers in high-risk areas must carry appropriate insurance, while some lenders may require it for homes in low-risk areas. Failure to purchase flood insurance could harm both the buyer and lender in the event of a flood. The correlation between flood […]
Mortgage affiliate programs allow bloggers and website owners to earn money through mortgage loans without running a mortgage company. The mortgage company benefits from extra marketing without huge expenses, and affiliates earn through cost per lead or cost per sale. Affiliates embed tracking links on their website and are paid when a lead or sale […]
A mortgage cosigner helps someone with no or poor credit history qualify for a mortgage loan, but is not entitled to the property. They must provide the same financial information as the primary borrower and are legally responsible for payments if the borrower defaults. Late payments or foreclosure will affect the cosigner’s credit report and […]
Mortgage interest is the amount paid to the lender for borrowing money. It accounts for over half of the monthly payment in the first few years and decreases as the principal balance is reduced. The Truth in Loan Disclosure outlines the interest rate, lock-up schedule, and total payments. Fixed and variable rates are available, and […]
Real estate experts recommend pre-approved mortgages for home buyers, as it can give them an advantage in competitive markets. Pre-approval is more reliable than pre-qualification, as it involves verified information. It helps buyers focus their search and avoid homes out of their price range. Buyers should request pre-approval before house hunting, and shop around for […]
