A mortgage is a loan to purchase a home. Conventionally, a mortgage loan is used to purchase a property and the property itself is used as collateral. Mortgages are generally taken on real estate properties rather than other movable properties. Home mortgages are loans that are taken to buy a house, which is also the security for the loan.
Taking a home mortgage enables a person to defer paying for the home purchased. Ideally, there are two parties in a home mortgage: the creditor (who gives the loan) and the debtor (who takes the mortgage). Other parties can be a legal advisor, a mortgage broker and a financial advisor. A mortgage broker like Marcel Garcia at 818 Mortgage can help buyers save money by shopping for the best loan terms and lowest interest rate for their clients.
Like conventional loans, mortgages can repaid in various ways: capital and interest, Interest-only, no capital or interest (reverse /lifetime/equity release mortgages), interest and partial capital, etc. Other kinds of mortgages are second mortgages, refinance mortgages, and bad credit mortgage loans.
Another important factor in home mortgages is the interest rate. This is the rate of interest that is to paid, along with the principal. There are different types of home mortgages, these can be categorized as fixed-rate mortgages and adjustable-rate mortgages. “In the past, with lower interest rates, most people chose the security of fixed rate mortgages. But today, with higher interest rates, more and more people are considering adjustable interest rate loans. Their hope is that in the future interest rates will come down,” Marcel Garcia the founder and CEO of 818 Mortgage explains.
The kind of mortgage to taken depends on the borrower’s requirements and situation. The main aspects to consider are: how much can be borrowed? What is the price range? And what are the tax advantages of taking the mortgage?
The home mortgage process, also known as origination, involves several stages. The first and most important step is to submit an application with a licensed loan officer like the ones at 818 Mortgage. This application will include documentation about credit history and income. A proper application will require that all documents are verified by an underwriter. Once completed, the applicant will be pre-approved for a home loan.
A good credit history is very important for securing a home mortgage. Creditors charge some fees for giving a mortgage: entry and exit fees, administration fees and if your down payment is less than 20% there is also mortgage insurance to consider.
“The first step to home ownership is by speaking to a qualified local loan officer,” call Marcel Garcia at 818 Mortgage for a free one-on-one consultation.
Company Name: 818 Mortgage (AKA: 818Mortgage)
Contact Name: Marcel Garcia
States: California, Arizona, Colorado, Florida, Idaho, Illinois, Montana, Nebraska, Oklahoma, Oregon, Tennessee, Texas, Utah, and Washington
Clients: First Time Buyer who need Pre-Approval for a Home Loan. Home owners who are interested in: Refinance, Cash-Out, HELOC (Home Equity Line of Credit), DSCR (investment property loan) and Reverse Mortgage.
Loan Programs: All traditional Home Loans / Qualifying Mortgages (QM), Conventional and FHA. As well as Non-QM: Stated, Bank Statement, P&L, CPA Letter, Business Bank Statement, and Hard Money Loans.