Interest Only Mortgage .panies-sexinse

Mortgage-Refinance Interest only mortgage .panies are a very different breed than the banking industry. These businesses are in the business for the sole purpose of making mortgages. They arent bound by the same laws as your bank, but some of the regulations are consistent with those of a bank. The mortgage .pany isnt a federal deposit location; theyre only responsible for making mortgage loans. They greatest concern they have, is that the property they make a loan for is worth the loan amount, excluding the closing costs and appraisal, if that is not part of the closing costs. Quite often, a mortgage .pany will require you to pay for the appraisal up front, or directly to the appraising .pany. You would think that the mortgage .panies would be reluctant to make loans that are interest only loans, but thats just the opposite of the truth. Mortgage .panies were some of the first guys on the band wagon of support for the interest only loans. Why would this be? I believe I can tell you why. The mortgage .pany pays their loan originators as they are called, not loan officers mind you, a .mission on the loans they originate. They are not paid a straight salary or hourly rate. Theyre paid according to the number of loans they originate. What does this spell for the originators? Big money if they can produce on their end. So, mortgage .panies have worked with every consumer in every way possible to provide them with a loan product that they can be approved for, because this is a paycheck for the originator. The closing costs, or loan origination fees, as theyre called by the mortgage .pany, are often quite high because the originator is making somewhere around 3 to 5% of the loan amount as a fee for his or her services. You wont be told this upfront, but when you receive your paperwork, if youll read carefully it will be itemized. The interest only loan allows the originator to fund larger loans, get approvals for larger loans, and receive larger .missions. Everybody wins, in the beginning. The consumer loses on the back end, when he needs to have equity established, and there is none, thanks to the mortgage .pany and the interest only loan. About the Author: 相关的主题文章: