Scenario:

I have a foreclosure soon to take place on my first mortgage. What happens to the second mortgage if it is paid up to date? I was so stupid that paid a company XYZ $1000 to negotiate a plan for paying the first loan. they promised me that the first mortgage lender would surely accept their plan. But they dropped the ball and the first lender won`t take anything. Now, it`s just 10 days left for the foreclosure sale. The lender is simply trying to blame it on me. Is there anyway I can get back the $1000? What`s going to happen when they sell off the home? Will the sheriff come and keep all my possessions if I`m still there in the property? I`m so upset, I could have used the $1000 towards the first mortgage instead of paying XYZ. What do you suggest now? 

Solution:

Once the first mortgage lender forecloses your property, he will sell it to the highest bidder in the foreclosure auction sale. The sale proceeds will be used to pay down your first loan and then the second. If there is a shortage, and the first lender fails to retrieve the entire first loan balance, he may give you a time period as per the state or bank laws after which you`ll have to vacate the property. There`ll be a date set by the Sheriff on which he`ll come and evict you if at all you don`t move out.

Now, when the first lender carries out a foreclosure sale, the second mortgage lender can take the following steps:



File a deficiency judgment against you if the foreclosure sale doesn`t cover the entire second mortgage loan balance.

File a civil judgment against you in court or garnish your income.

Bid for the property at the time of foreclosure sale in order to recover the money the second lender has invested.

Even after the first lender sells off property, the second lender can pay off the required amount of money to the first and get back property at the end of the redemption period.



Apart from the steps above, the second lender can also charge-off any unpaid debt after getting a part of the sale proceeds when the first loan is paid off. This means that the second lender considers the debt as uncollectible. But you still don’t lose your obligation to pay off second mortgage after foreclosure.

A 2nd mortgagecharge-off will have a negative impact on your credit score. So, try to repay the charged-off debt and request the second lender so that he reports to the bureaus who can then update the status on your credit report as “Paid Charge-off” or “Settled Charge-off”.

In case you don`t pay off the charged-off debt, it may be considered as income and depending upon the state laws, you may have to pay tax on the unpaid debt. However, if your lender forgives the unpaid debt, you may not have to pay tax provided you qualify for tax relief on mortgage debt forgiveness.

What I suggest is, save up your money for rent because foreclosure is inevitable as it`s only 10 days left for the sale. Also, try to negotiate with the second lender so that he accepts the amount that you can pay off in easy installments. This will help you avoid a charge-off being reflected on your credit report.

 



By: Samantha Taylor

About the Author:

As of Monday July 14th, 2008, the government has passed new laws which cause a decent amount of change within the mortgage industry and how these companies give out loans to homeowners. Even though they were passed on Monday, these rules wont take effect until October 2009 to give time for companies to transition to the new set of standards.

The concept being birthed in 2007, was in response to the treatment homeowners were facing from mortgage companies and to the foreclosure crisis that took place. It has been stated that the basis for these new rules are to protect future home buyers from mortgage companies.

The Foreclosure Crisis

Within the late 2006, the housing industry felt a large blow when a mass amount of foreclosures occurred due to rates on mortgages and also because of the fact that many of the new loans were made to individuals with either bad credit or too low of an income.

Experts believe that the basis for so many of these home loans being in place was the fact that many homeowners thought they could reap benefits when refinancing later on. Even though, their ideology failed because with the interest rates reset higher, refinancing was hard to come by which led to approximately a million foreclosures.

Mortgage lenders, banks and other financial institutions felt the impact dramatically reporting 100’s of billion dollars in losses. Not only was the housing industry devastated, but the US economy in a whole was also rocked by the housing crisis. These issues led to the US Federal Reserve cutting down interest rates and to the creation of the economic stimulus package which was passed by the government in 2008 to help offset debt and to spur on economic growth and instill belief in the US economy.

The Economic Stimulus Package

The Economic Stimulus Package of 2008 was passed in order to restore good faith within the economy. Its main purpose was to provide assistance to low and middle income citizens. From the economic stimulus package, all recipients were set to receive at least $300 and an extra $300 per dependent under the age of 17. The maximum pay that a person would receive would be no more that $600. Any individuals with an annual income over $75,000 would not receive any monetary funds except for those who had qualifying children.

In addition to citizens, the law also applied to businesses offered them certain tax incentives. Those include tax deductions on eqiupment meant to improve ones business and an increase in how much a business can deduct in business expenses.

In an article by James Temple from SF Gate he lists several key changes in mortgage practices that was just passed on Monday.

General Mortgage Rules:

- Prohibit creditors and mortgage brokers from coercing appraisers into misstating a home’s value.

- Require additional information about rates, monthly payments and other loan features in all advertising.

- Ban seven deceptive or misleading advertising practices, including calling a rate or payment “fixed” when it can change.

Lending Rules For Higher Priced Subprime Loans:

- Force lenders to consider a borrower’s ability to repay loans from income and assets other than the home’s value.

- Require lenders to document a borrower’s income and assets.

- Ban penalties for borrowers who pay off loans early, if the payment can change in the first four years. In certain cases, a prepayment penalty period can’t exceed two years.

- Mandate that creditors ensure certain borrowers set aside money to pay for property taxes and insurance, by establishing escrow accounts.

In reference to the new mortgage rules, many claim that these rules will assist many homeowners and aspiring homeowners from companies that prey on them to make a profit despite the views on their practices are questionable. Yet with this belief intact, many individuals still hold firm in their opinion that these rules are just a tip of the iceberg and much more needs to be done within the housing industry and in relation to some of the illegal practices carried on by some of the lending companies.



By: Ferdie Frederic

About the Author:

This article describes the Obama mortgage plan and how to know if you qualify. This is a great program to lower homeowners monthly mortgage payments who do qualify.

Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income. A Home Affordable Modification will provide them with mortgage payments they can afford.

If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible. Are you eligible for a Home Affordable Modification ( the Obama Mortgage Plan)? Just answer these questions:

1. Is your home your primary residence?

2. Is the amount you owe on your first mortgage equal to or less than $729,750?

3. Are you having trouble paying your mortgage?

For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?

4. Did you get your current mortgage before January 1, 2009?

If you answered yes to these questions, you are a good candidate for this program. Under the Obama mortgage plan guidelines, your lender may lower your mortgage payments to no more than 31% of a borrowers pre tax monthly income.

This is done by:

* First, reduce the interest rate to as low as 2%,

* Next, if necessary, extend the loan term to 40 years,

* Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.

If you would like more information on this program and help getting approved, just visit the links below! Here’s is an example of what they got one of their clients with the Obama mortgage plan:

 

H.A.M. Modification Completed:

1.      Down Payment/Contribution: $ 0

2.      Payments of: $ 1,974.76

4.      First Payment Due On: 9-01-09

5.      Last Payment Due On: 11-01-09

(This one is on a trial basis.  If the borrower makes these new payments on time the are guaranteed the modification.  Very important not to miss these payments!)

1.      Old Interest Rate: 6.450% with PITI payments of:  $ 2,686.99

3.      New Mod Interest Rate: 2.87% PITI with payments of: $ 1,974.76

4.      Total Savings with the Mod: . . . . . . . . . . . . . . . . . . =

. . . . . . . .  $ 713.23

Notes: Borrower is very happy with the modification.



By: Bob Mason

About the Author:

There are only 6 ways to pay off your mortgage early and if you don’t know them, you’d better be ok with leaving tens of thousands, sometimes even hundreds of thousands, of dollars on the table.

Now, some of these are great, some are not so great. It just depends on your financial situation and how badly you want to pay off your mortgage.

Regardless of your situation, however, there is always a way to pay off your mortgage that will work for you.

The 6 Methods To Pay Off Your Mortgage:

1 – Use the “Mortgage Loophole Report” that has recently been publicized (report info below)

2 – Get a biweekly payment plan (it may not sound like much but it actually will pay off your mortgage quite well)

3 – Make an additional payment to principle each month (the most common way to pay off a mortgage)

4 – Refinance to a 20 or even 15 year loan (the mortgage payment will increase but it’ll get the job done)

5 – Make a lump sum mortgage payment to the principle (maybe with a Christmas bonus you get)

6 – Last on the list is to refinance at a lower rate. Your payment will be lower and you’ll have more money to pay off your mortgage with. You probably get a million calls a day about refinancing, but I wouldn’t recommend it unless you can see both mortgage pay off amortization schedules and total interest paid on both. You’ll learn why in the Mortgage Loop Hole Report.

Before ever choosing which method that you’ll use to pay off your mortgage you need to have a firm understanding of not only what the current sacrifice is but also of how much it’s actually going to help you pay off your mortgage and cut interest.

Usually, the decision comes down to your family’s future and your family’s lifestyle. Ask yourself the following questions:

Do you have a retirement set up?

Do you have money for your kid’s college?

Do you want/need a new car?

Do you or your spouse want to vacation?

And most importantly, how much money do you want top save and when do you want to pay off your mortgage?

If you’re truly serious about saving money and want to pay off your mortgage fast, you’ll find the perfect option.

Although this is just a basic overview of methods to pay off your mortgage, I’ve written several reports that go into further detail on these.

Also, if you truly want the insider secrets to save big bucks and pay off your mortgage lightening fast then check out “The Mortgage Loophole Report”



By: Ben Schmitt

About the Author:

Probably the longest commitment we ever make in our lifetimes is the 30 years we commit to a mortgage. There isn’t too much we can count on having after 30 years, but unless we sell our houses or hit the lottery, we can be sure we will be paying off our mortgages for a long time!

Imagine how nice it would be to be mortgage free! It would, in many cases be like getting a $1,800 a month raise. It doesn’t seem possible anyone would have any kind of financial difficulty if he didn’t have a mortgage hanging around his neck. You could buy just about anything and go just about anywhere without needing to prepare your budget around that monthly mortgage payment.

In this article, we will explain how to pay off your mortgage in double, triple and even faster time! Oh, it won’t necessarily be easy, but it can be done. It has been said a person can do anything with motivation and a plan. So, here’s the plan.

Check your interest rate

If you are paying over the market rate on interest it may behoove you to refinance to the lowest rate you can get. Here’s why:

A $250,000 mortgage at 8% for 30 years comes with a monthly payment due of $1,834.41. Looking at an amortization schedule for this mortgage we find on the first payment, the principal being paid is $167.74.

A $250,000 mortgage at 6% for 30 years comes with a monthly payment of $1.498.88. Its amortization schedule shows the first payment’s principal portion is $248.88. Why is this important? Because you want to pay off as much principal as possible while paying as little interest as possible.

The early months are the most important ones

With the 8% mortgage, as we have noted the first monthly principal payment is $167.74. The principal portion of the payment increases slightly with each payment. So, for payment number 6, the principal paid is $173.41. If we add the principal payments for payments 2 through 6 together we get $855.64, and if we add this amount to our first payment, we will have paid the first 6 payments of our mortgage.

If we keep adding $850 to $1,000 to our payment every month for the next 6 months, we would have paid off the first 6 years already!

As you can see, the early months are important in getting a good start to paying off a mortgage early. This is because in these months, the interest, which is time value, is expensive. So, by not using that time we save a lot of money.

Double time and then some

Now let’s see what would happen if we doubled the payment every month. The payment due monthly is $1,843.41. If we paid $3,646.81 monthly, we would be paid in full in 7 years and 7 months. Now that’s quick!

Here’s why it’s important to get as low an interest rate as you can. If you had a 6% interest rate on the same amount for 30 years, the monthly payment would be $1,498.88. With this loan, if we paid a total of $3,646.81 monthly, we would be paid in full in exactly 7 years. So, we would save an extra 7 times $1,498.88 or $10,492.16.

Who’s got that kind of money?

Of course, coming up with an extra $2,000 a month is a bit much, but this is the kind of money it takes to pay off a mortgage in a lightning quick mode. So, to get a more realistic goal, here’s what to do.

Look at the mortgage’s amortization table and scan down to the halfway point. This would be payment number 180 on a 30-year mortgage. Take note of the principal portion of this payment. On the 6% mortgage we have been talking about, it is $607.73. If you pay this amount in addition to each of your monthly payments, you will have paid off the mortgage in full in exactly 15 years.

Again, sometimes coming up with additional payments is difficult, but this method gives you an idea of how making relatively small additional payments can help you pay off your mortgage way ahead of schedule.



By: Ed Lathrop

About the Author:

We all know that putting extra payments down on your mortgage is going to pay off your mortgage faster and save you money. But what not everyone knows are the little insider tips that allow you to know to the penny, EXACTLY, when to use them to pay off your mortgage, how much to make them in, and exactly what you’ll save as a result.

See, it’s really NOT about how many you make, or how often, or even how much you make them in. When you’re trying to pay off your mortgage faster their is only one thing that matters.

Timing.

You see mortgages are structured pretty creatively. Mortgage companies tell you that you’re only paying the 5-7% rate, but they never explain what that really means. Our mortgage payments are almost completely wasted on interest at the beginning of our mortgage. This is what makes it so difficult to pay off your mortgage.

What it means is that a $4000 payment may only $250 of principle. The entire rest of that payment goes to PURE INTEREST. It’s basically burning a hole in your pocket when it should go to pay your mortgage off.

Now, here’s how to beat it. If you make a $250 principle payment on its own… right before you make the $4000 payment then guess what? You just completed that entire payment without wasting $3750 on interest. You moves you amortization down the line to pay off your mortgage. Sure, you’ll still have to make a $4000 payment, but you pay your mortgage off $3750 earlier and it only cost you $250! That’s how banks think.

If you could get $3750 for every $250 you put in, how many times would you do it? As many as you good and you wouldn’t just pay your mortgage off, it’d evaporate.

If this doesn’t quite make sense yet then grab a copy of your amortization schedule or The Mortgage Loophole Report and analyze how they’ll pay off your mortgage. You’ll see.

So…

Catch #1 – If you make a small prepayment at the beginning of the term, you’d pay off your mortgage MUCH earlier than you would by making a bigger principle payment at the end of your mortgage.

When you put the money in at the end you don’t even pay your mortgage off as fast or save near the amount of interest because most of your payment is going to principle anyway. As you pay off your mortgage they weaken. Your mortgage pay off time literally depends on this.

So, the secret to pay off your mortgage is to understand the way a mortgage amortization has been structures to accommodate certain methods to pay off your mortgage.

Catch #2 – Although you probably realize that this information is important to pay off your mortgage you probably won’t be able to apply it the the extent that you wish you could. Honestly, if you had all the extra cash to pay off your mortgage with, then you’d have made a bigger down payment on your home. It’s not until most of us have already been trying to pay off our mortgage that we start to get the extra cash to put towards the pay off.

There is a solution.

There is a “mortgage loophole” that home owners are finally realizing and using to pay off their mortgage. It truly is a revolution in the mortgage industry to help people pay off their mortgage. Don’t expect your local bank to tell you about it. They not only don’t want you to pay off your mortgage early but they haven’t been spreading the news among their mortgage brokers.

Anyway, I’d better stop upsetting banks with this insider information. Hopefully you can apply this information to pay off your mortgage immediately before your mortgage begins to amortize.

Also, if you truly want the keys to pay off your mortgage lightening fast and save big bucks, then grab your free copy of The Mortgage Loop Hole Report.



By: Ben Schmitt

About the Author:

Florida FHA Mortgage Programs

FHA loans have been helping Florida homebuyers become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your Florida mortgage lender can offer you a better deal.

Low down payments Low closing costs Easy credit qualifying

What does FHA have for you?

Buying your first home?

FHA might be just what you need. Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.

Want a fixer-upper?

FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs – all in one loan.

Financial help for seniors

Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer “yes” to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.

Want to make your home more energy efficent?

You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.

How about manufactured housing and mobile homes?

Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.

The FHA loan program was created to help increase homeownership. The  FHA program makes buying a home easier and less expensive than other types of real estate mortgage home loan programs. Here are just some Examples of how FHA can help you buy a home,

Minimal Down Payment and Closing Costs.

Down payment less than 3% of Sales Price 100% Financing options available No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase   3 years after a Foreclosure.  Easier Debt Ratio and Job Requirement Guidelines such as: Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.

Answers to Mortgage Questions

Whether Refinancing or Buying, We

Deliver Good Answers to Great Questions!



By: FHA home loan Lender

About the Author:

Much like a broker can help you find the best companies and finance, etc, a mortgage advisor can also help you find the best option for you. He or she can also help you in the application process, and offers an excellent service for anyone buying a house. The main difference between a mortgage advisor and broker is the training and expertise needed to do each job.

As well as the advice a mortgage advisor can give you when it comes to buying your house, they can also offer:

? Different mortgage options for you to choose from

? Advice on mortgage protection, repayments, re-financing, etc

? Offer building insurance alongside the mortgage itself

Although a mortgage advisor can discuss so many different financial aspects with you, they don’t need to take any specialised training courses or need any professional qualifications initially. This is another aspect that sets them apart from a mortgage broker. They will need to take a basic training course, but this is more in customer service and relations.

The route to becoming an advisor is quite a straightforward one – normally starting off in a bank as a customer service representative, or an administrative role within a financial services company. If they decide to pursue the more dedicated mortgage advisor route, this is when the additional training will come into effect.

The Financial Services Authority (FSA) requires that anyone giving specialist mortgage advice needs to be proficient to a certain level. This means that to be a mortgage advisor, a trainee has to study for either the Chartered Insurance Institute (CII) Certificate in Mortgage Advice, or the ifs School of Finance in Mortgage Advice and Practice (CeMAP). If you want to use the services of a mortgage advisor, whether through your bank or otherwise, you should look for these qualifications.

Once someone has passed the relevant exams to become a specialist mortgage advisor, they can then take the next step up, and become a financial advisor. The benefit to you is that not only can you then use the same person to handle both your mortgage and other financial details – pensions, life assurance, etc – but you won’t have to explain everything about your current situation to a different person every time.

Another area to consider if you are thinking about using an advisor to help you with your mortgage is whether or not they are being completely unbiased. For example, if you use your bank and they provide an advisor for you to work with, you would only be getting advice on the services that the bank itself offers.

However, if you were to use the estate agent selling the property, or a mortgage broker, then you would be offered a far greater choice and benefits from a much larger range of financial companies. This is definitely something to keep in mind when working with a financial advisor, and will make sure that you eventually get the mortgage and advice that’s right for you.

Remember that all advice received is at no obligation until you sign on the dotted line. You should therefore not feel overwhelmed or pressured when gathering information from a mortgage advisor.



By: michael sterios

About the Author:

Scenario: My father has been through financial problems throughout his life. 10 years ago, he and my mom have had negative credit scores due to past uses with the IRS and he even had his wages garnished. However he could scrape by and later on I helped him out by buying a home with a mortgage thereby having my name both on mortgage and title. I knew I would end up selling the property if they didn’t make payments on the mortgage as my security and I could always deduct the mortgage interest on my returns. He promised to pay off the mortgage within 2 years and in return I would give away the property to him right after that. But it’s over 6 years and the loan isn’t paid off. I have had to take out cash from my savings to keep the payments on time. The property has gone up in value over the years but my relationship with my dad has worsened. He feels I’m into stealing his money which isn’t true. My dad wants me to sign over the property to him. And he’s also looking for lenders to refinance the loan as the quitclaim would leave the mortgage payoff responsibility entirely on my shoulders. I’d like to make sure that my name is removed from the mortgage debt if at all I transfer the property and would like to know about the tax implications. Is such a transfer possible using a quitclaim? I don’t want to sell and out him in a precarious situation because he can’t make payments as he’s on social security only and in order to save a bit more, he’s looking for a refinance.

Solution:

If you’re looking to take your name off the title, you need to execute a quitclaim deed approved by your state and sign it over to your father. But, prior to recording the deed, get it signed by a notary public.

However, while you transfer the property using a quitclaim deed, your responsibility towards the mortgage doesn’t end as the deed does not free you from the mortgage payment liability. So, here’s why your father needs to do a refinance. While he refinances the existing loan with a new one in his name alone, yours is taken away from the loan doc and therefore neither are you on the title nor on the loan.

As far as taking your name off the loan is concerned, you can also request your father to talk to the lender and look into the chances of a Novation – a process by which you can simply transfer the loan to your father. But given the fact that your father has had credit and finance problems, depending upon how long they have been affecting his credit and finances, he may or may not be allowed a Novation.

However, refinance can still be a possibility if he’s looking for a reverse mortgage. But in order to qualify, he needs to be 62 years and above. Also, if your father has good amount of equity in the home, he’ll be able to get a higher loan amount with which he can pay off the current mortgage. Moreover, the property should be his primary residence and as such he needs to have his name on the title. And that’s possible only when you sign over the quitclaim deed.

The best part of taking out a reverse mortgage is, one does not have to pay back on a monthly basis. The reverse mortgage needs to be paid back only when the last surviving borrower dies or sells property or moves out.

Now, considering the tax implications of doing a quitclaim, well, if you sign over the deed, you’re the grantor and hence it’s your liability to pay taxes. If you quitclaim property without taking any money in return from your father, the transfer is regarded as a gift and the value of the gift will be the value of the property at the time of the transfer (here the value has appreciated). Now, if the value of the gift does not exceed the annual exclusion limit of $12000 (for 2008) per year per person then the donor (here it’s you) need not pay federal tax on the gift.

However, if the value of the gift exceeds $12000 and you have already given up $1,000,000 in gifts in total till now in your life, you’ll have to pay the federal gift tax. Otherwise you need not have any tax liability as such upon transfer of property. The total gift amount of $1,000,000 is the lifetime exemption for paying federal gift tax.

While the value of the gift at the time of transfer helps you decide whether to pay gift tax, it enables the recipient, your father, to determine if a deduction is available when he sells the property at a loss.



By: Samantha Taylor

About the Author:

As a borrower, you want to know all of the matters that affect how your mortgage (Intelligence Hypothécaire) will be negotiated. Here are two important features you may want to know about.

-Brokers get a fee based on the size of the mortgage, not on the interest rate of the mortgage.

-Mortgage consultants may receive a volume bonus when they place all of their loans with one bank.

You probably wonder how a mortgage broker (Intelligence Hypothecaire) is paid, since you do not pay him. You are right to be curious, because it is critical to know the incentive of each party to a transaction so you can better understand issues such as conflict of interest, etc.

We all need to be paid for our efforts, and mortgage consultants are no different. They are paid by the lending institutionfor securing the loan forthem. The amount of the home loan is what determines the commission the broker (Intelligence Hypotheque) will earn. The larger the loan, the higher the commission, (the commission on a $200,000 loan is double the commission on a $100,000 loan) not, the higher the rate, the larger the fee.

There are some cases when the commission can be increased slightly. These cases are based on: the term of the home loan – hypotheque, certain variable rate notes, and for how long a mortgage is guaranteed, in guaranteed mortgage products.

Interest rate does NOT influence the fee a broker (courtier hypothecaire) will earn. So there is no incentive for the mortgage consultant to find a higher rate for the customer. This is in contrast to some bonus programs that banks offer their employees. (Read “Will my bank offer a better rate than a broker?” to learn more about this.)

One way mortgage consultants do generate higher fees is by participating in a volume program with a lending institution. If a broker gives a certain number of loans to the same lending institution, he can earn more commission, sometimes as high as 25% over the original fees.

Smaller brokers are influenced by this incentive, but it has no effect on larger mortgage consultants. Brokers such as Mortgage Intelligence, that originated over $8 billion in loans in 2005, or Multi-Pret/Mortgage Alliance with over $5 billion in home loans easily reach the limit on all volume business, and so are not tempted to work with one bank.

What information can we draw from these all of this? First of all, we do not have to be concerned that a broker will be tempted to get higher rates for his customer in order to increase his commission. Secondly, working with a large broker will assure that your loan will be negotiated with the most advantageous lender for you, not the one that will give your broker an additional commission.



By: Gregory van Duyse

About the Author: