Mortgage loan holders may purchase and own real estate without the assistance of a loan officer or mortgage broker. However, a good mortgage broker makes it easier & loan eligibility and terms are established by the mortgage lender.
Important things to understand for Mortgage Loans:
Standard Fixed-Rate Mortgage Loans:
A loan with a fixed rate over the life of the loan. Often, however, rates fluctuate over time. This is the most mainstream loan option.
Mortgage Loans Amount:
The total mortgage loan amount borrowed in the origination of the loan.
Standard Adjustable Rate Mortgage (ARM):
A loan with an adjustable-rate typically for a set number of years. The rate fluctuates annually over the life of the loan. Adjustable Rate Mortgages can be a bit more challenging to qualify for, as lenders are required to adhere to fairly stringent guidelines regarding loan amounts, program features, and borrower credit.
5/1 Adjustable Rate Mortgage:
A loan with an adjustable-rate for the first 5 years but then (usually) adjusted annually. Rate and monthly payment are fixed for five years but then adjust annually.
3/1 Adjustable Rate Mortgage:
A loan range that follows the same trend but involves a 3-month preceding adjustment and annual adjustment.
The origination may include a lien on the property being purchased as security for the remaining loan amount with a double mortgage.
No Ratio Loans:
We use popularly by lenders for No Ratio Loans. These types of home loan products are for applicants whose credit is low, making them ideally suited for an adjustable low-rate loan. They may also incorporate balloon payment and division of accrued interest and principal over the remaining loan term in order to lower the monthly required payments.
Asim Ali Mortgage Brokers
Our team of brokers is working hard to get you the best mortgage loans. If you have any questions or if you are in need of a mortgage broker, you should contact us today to get more information on how a mortgage broker can save you time and money.