Secondary Mortgage Market Sets the Standards and Practices for Mortgage Lending
The Secondary Mortgage Market is responsible for the setting many of the rules and common practices that determines who gets a home loan. The secondary market includes Fannie Mae (Federal National Mortgage Association or FNMA), Freddie Mac (Federal Home Loan Corporation or FHLMC), Ginnie Mae (Government National Mortgage Association or GNMA) and a variety of other investment oriented institutions.These institutions set the standards because they are the ones that will often buy and service your home loan after you have purchased your property. Although your lender handles all of your initial paperwork, there are several well established steps to take your Mortgage out of their hands and into the secondary market where additional fees, manpower and time that will be invested in servicing your home loan for a typical period of 15 to 30 years. They Lend Money to Your LenderOnce your lender sells you home loan on the secondary market, it frees up the money to make another loan to another consumer looking to purchase their own property. It's an intricate revolving system that was set up after the depression and refined after the massive Savings and Loans scandals in the 1980's.
It prevents your Mortgage Lender from running out of available cash when they approve lots of loans and assures you that each loan application gets a fair review regardless of the type, size and geographic location of your lender.How does this all affect you? Since your loan will spend the majority of its lifetime floating in the secondary market, they institutions involved have setup strict guidelines and requirements that determine what type of information is needed from you before they can work with your loan.
All of the guidelines are based to some extent on the systems set up by Fannie Mae and Freddie Mac.
As each lender determines the type of risk they can absorb in the marketing they may work strictly within the guidelines of Fannie Mae and Freddie Mac or they may take a more flexible approach to approving their loans.
The guidelines of these Mortgage giants are constantly changing, therefore, it is to your advantage to seek out a reputable company and Mortgage Broker that will fully comprehend them and know how they apply to your particular mortgage file.Even better, get to know the players and rules on your own.
Never be at mercy of a banker or Mortgage Broker again.
For information visit the home pages of the following organizations:Fannie Mae ? http://www.fanniemae.comFreddie Mac ? http://www.freddiemac.comGinnie Mae ? http://www.ginniemae.gov.
Syd Johnson is the Executive Editor of RapidLingo.com, Financial Solutions Website. You can see more articles at http://www.rapidlingo.com.This article may be freely distributed as long as the author's bio is included with an active link to http://www.rapidlingo.com.Home Mortgage Refinancing
Home mortgage refinancing is the process of refinancing the existing home mortgage with a new loan. When the current interest rates on the home mortgages are lower than those during the times in which the homeowner has taken the existing and old home loan, in order to reduce the monthly payments towards the old loan, the homeowner can refinance the present home mortgage. Generally the interest rates on refinance will range in between 3 to 6%. It is known that the interest payments on home mortgage are tax deductible. Further if the owner is able to pay more in a month than the existing installment, then he can replace his present 30-year loan with 15-year loan thus saving a lot of interest payments.
Moreover if the owner wants to remodel his house to appreciate the home equity, he can go for cash-out home mortgage refinancing in which he will get some additional amount after paying the existing old home mortgage. Sometimes the motivation behind the home mortgage refinancing may...
Home Mortgage Refinancing
Mortgage calculator > Home Mortgage Refinancing
Mortgage Originators are Gravitating Towards MortgageDirectMail.com for Resources on Direct Mail Marketing for the Mortgage Industry
MortgageDirectMail.com announces it will make The Greatest Mortgage Direct Mail Campaign in the World available to all mortgage professionals who wish to use the best mortgage direct mail piece of all time! Although the best mortgage mailer of all time has been around for several years, until now the mortgage industry was unaware that such a mailer even existed. The mail piece started receiving some publicity from the Mortgage Originator Magazine when it published an article about it. Based on the success of the article it is now being released for the first time ever to the rest of the mortgage industry. In fact there is a complete mortgage direct mail system that has been developed for mortgage professionals. This complete system is a step-by-step how to system that has everything needed to begin a successful mortgage direct mail campaign.One mortgage loan originator is closing over 30 loans per month every month solely from using this mortgage direct mail campaign.
He finally...
Mortgage Originators are Gravitating Towards MortgageDirectMail.com for Resources on Direct Mail Marketing for the Mortgage Industry
Mortgage calculator > Mortgage Originators are Gravitating Towards MortgageDirectMail.com for Resources on Direct Mail Marketing for the Mortgage Industry
What is a Buy To Let Mortgage?
A buy to let mortgage is a mortgage on a property which is to be let out or rented, rather than occupied by the owner. A buy to let mortgage is exactly as it sounds - a mortgage that allows you to buy a property in order to let if out to a tenant. This type of mortgage is similar to most others however the buy to let mortgage is designed for people who buy a property with the intention of letting it out. Buy to let is purchasing a property, letting it to tenants and using the income from their rent to pay your mortgage. Essentially you have someone paying your mortgage for you, but the huge positive aspect is that at the end of the mortgage you have a valuable property and you have had someone buying the property for you with their rent.
In summary a buy to let mortgage is simply a mortgage that allows you to purchase a property that you intend to let out. A buy to let property can therefore been seen by many as an investment. The principle is simple: buy a property, let it to...
What is a Buy To Let Mortgage?
Mortgage calculator > What is a Buy To Let Mortgage?
New World Mortgage Tops Business Journal Largest Mortgage Broker List
Last year, New World Mortgage closed more loans than any other area mortgage brokerage in the Charlotte metro, and was fourth in overall loan volume as measured by dollars. According to the Charlotte Business Journal, the firm closed 3,083 loans with a total volume of $386,000,000 in 2003."Our average loan was around $125,000, which tells me that we are following our plan very closely. New World's mission is to be a lender for life to people from all income levels," says Christian Werner, CEO of New World Mortgage. "If we were just focusing on the wealthy homeowner, that average would be a lot higher."New World Mortgage, Inc. is the full service mortgage brokerage whose mission is to be a consumer's financial advocate, not just a one-time lender.
Founded in 1998, New World Mortgage, Inc. employs 51 loan originators, 11 support staffers and five managers in Charlotte, NC; Fort Mill, SC; and Stow, OH. The company is located on the web at
New World Mortgage Tops Business Journal Largest Mortgage Broker List
Mortgage calculator > New World Mortgage Tops Business Journal Largest Mortgage Broker List
Kolobags Partners with the American Heart Association to Raise Funds
Kolobags (http://www.kolobags.com), the online boutique dedicated to offering a wide variety of stylish laptop bags and technology cases for women, has partnered with the San Mateo Division of the American Heart Association to raise funds and to generate awareness of heart disease among women. "Heart failure is the number one killer among women in America," states Raffaella Camera, Managing Partner of Kolobags. "An amazing statistic is that...
Mortgage calculator Secondary Mortgage Market Sets the Standards and Practices for Mortgage Lending laptop
Mortgage calculator > Kolobags Partners with the American Heart Association to Raise Funds