![]() |
![]() |
Mortgage Information |
|
![]() |
![]() |
The Secondary Mortgage Market In TotalityMaryann The borrowers mainly are concerned with only getting their loans approved. They don’t really think as to what happens to these loans or how the lenders can afford to lend you so much of money. Here we attempt a detailed study of these factors with reference to the secondary mortgage market. The mortgage market works in a cycle. There are basically two markets
The primary mortgage market involves two broad categories
This is where the loan portfolios are held and then sold to the secondary market. In simple words the loans that you take are accumulated with details and they are sold to the big wigs. The next question would automatically be: What happens in the secondary market and why are the loans sold in the first place The loans are sold in the secondary mortgage market to investors. This is done in three ways:
The monthly payment that you make to your lender is actually transferred to the GSEs and they pass it on to the investor market. But the last transaction involves a cut; the guarantee fee is deducted and allowed into the market. At Wall Street investors buy these loans either whole or packaged and accordingly the loans are financed. These transaction costs need to be borne by the borrowers. But the benefits that the secondary market reaps offset these. Benefits of the secondary mortgage market
The mortgage market earlier allowed only conventional loans to be sold but today the scenario is changing. Even sub-prime loans are gaining entry and they are helping the loan originators to fund more such loans .This cycle is essential to the very sustenance of the mortgage industry. Thus it all depends on the investors and how much they buy and what price which defines the well being of the mortgage field. For more knowledge regarding mortgage markets log onto:
| ![]() | ![]() | ![]() | RELATED ARTICLES 5 Easy Ways to Save and Build Wealth 1. Pay off high-cost debt. The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates. For example, if you have a $3,000 credit card balance at 19.8%, and you pay the required minimum balance of 2% of the balance or $15, whichever is greater, it will take 39 years to pay off the loan. And you will pay more than $10,000 in interest charges. Alternative Options For Rising Interest Rates As interest rates have risen in the last six weeks from record lows, homeowners are once again face with finding viable options to reduce the amount of interest paid on their home loans.The rush to refinance provided borrowers with good to excellent credit the opportunity to take advantage of low interest rates, that helped to reduce their monthly mortgage payments, which was the only benefit provided by the lowered rates. Your Yearly Living Trust Review Some time ago, Congress made certain changes to the estate taxes.As a result of the changes, effective January, 2004, the tax free amount increased to $1,500,000. Back in 1997 it was $600,000. This allows a married couple to leave a minimum of $3,000,000 tax free. 8 Point Checklist, Evaluating Online Vendors Here are 8 things to consider, when evaluating lenders online:Website DesignPrivacy PolicyAbout UsPopularityReputationShort FormPoints, Fees, Terms and RatesCommunication How to Avoid Credit Card Late Fees Everyone hates late fees and being late will cost you dearly these days. For some credit cards today, if you are late, you will have to shell out as much as $40 each time. This can put a nice sized hole in your pocket really quick. Discover What You Really Want To Do Are you doing what you really want to do or did you just fall or wander into the job you now have. As a friend of ours once said,’ I am one of twenty two doctors in our family. The only ones in our family who are not doctors are the dogs and cats’. Did you decide what you wanted to do or are you one of a growing number whose work was dictated by circumstances or their parents Wealth Creation and Mortgage Planning - Two Great Tastes that Taste Great Together What if I were to tell you that almost everything you have been told about what to do with your home has been absolutely wrong and that one of the worst ways to build wealth is through your home And what if I further went on to show you that anyone who perpetuates this myth probably is not your best source for accurate financial information Why Choose a Remortgage You would choose a remortgage because it allows you to change your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender thereby saving money. A remortgage can also be used to raise additional finances by releasing equity in your property. Common Sources of Financing for Small Business The choice of financing is an important determinant of whether a product reaches the market, or whether an existing business can survive. The choice of financing is an important part of being an entrepreneur and business owner, and the ability to raise cash when you have no or limited history takes skill and creativity. There are a number of sources of financing. The suitability of the alternatives depends on what stage you are at, and will change as the company matures from stage to stage. The following outlines the most typical forms available. What is a Commercial Business Loan A commercial business loan is designed for a wide range of UK small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. How I Became a Hard Money Lender Unlike other investors, my venture into real estate was a natural extension of my secondary business as the IP Ware software developer. However, opportunity and perseverance beget wealth, or at least a decent side income. Is Vacation Rental Ownership Your Business Opportunity Its a dream Ive heard so many people express:"I want to run a bed and breakfast.They are so cute" Or "I want to own a vacation rental property, so I can get a free vacation and make money the rest of the year. Choosing the Best Life Insurance Option for You Life insurance in is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy. There are two main types of popular life insurance, both of which offer a range of invaluable benefits to consumers. How Much House Can You Afford Your mortgage calculator says: probably a lot less than your mortgage banker says you can. Life After Debt – Strategies for Dealing with Problem Debt Honorably and ethically rid yourself of burdensome debts using the little known Negotiation Strategy, without having to experience the loss of control and privacy associated with filing for bankruptcy, consolidation, or credit counseling. What You May Not Know About Your Mortgage Note By now, many of you are already somewhat familiar with private mortgage notes and how they are used to help facilitate the sale of a property. You may also know that there is a whole industry out there where note investors are in the market to buy your mortgage note. When a Real Estate Agent May Not Be The Best Option Historically, when homeowners wanted to sell their home, the first call made would be to a Realtor.Since the early 1900’s, Realtors have represented homeowners during the process of selling their home, which is usually to another homeowner.Real estate brokers hold state regulated licenses that allow them to market real estate on behalf of the owner.The national average for broker commissions is approximately five percent.In many cases, another broker will bring the buyer and receive typically fifty percent of the commission.When the majority of homeowners sell their home, they believe a real estate agent gives them the best chance to maximize the amount they receive and the agent commission will come out of their proceeds at closing.This is a process that takes place everyday throughout America. Five Reasons the Economy Will Crash and Will Stay Crashed If the U.S. economy had to be summed up in one word, the word would be unsustainable.From entitlement programs to trade deficits, the U.S. economy cannot continue indefinitely on its current course.Sadly, changing course is difficult and political impossibilities are quickly giving way to mathematical impossibilities.The economy will soon come face to face with problems that cannot be solved and it will crash.The crash will be major and recovering from it will take many decades. Quick Tips For The First-Time Homebuyer NC—Buying your first home is an exciting new experience. Attending Open Houses, putting in an offer to buy and decorating your new home to suit your style is all part of the excitement. All the decisions that need to be made can also make you feel nervous. Here are a few tips that can help out the anxious first-time homebuyer. US Commercial Mortgage Basics Commercial mortgage loans are used when purchasing structures such as office buildings, apartment complexes, health care facilities and retail outlets. Whether it’s a hi-rise tower or a family-owned restaurant, buyers typically need additional funding to complete the transaction.Commercial mortgages are what they pursue. ![]() |
home | site map |
© 2005 |