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Mortgage Broker Definitions
A mortgage broker acts to bring borrowers and lenders together for a loan, usually searching different lenders to find the best financing deal for the borrower. A mortgage broker can either act independently or be part of a larger company, but they should be licensed for the services they perform. Below are some terms often used when dealing with mortgage brokers.
Mortgage – A legal document that pledges a property to a lender as security for payment of a debt. There are many different kinds of mortgages, from conventional to fixed-rate to balloon mortgages.
Loan – A sum of borrowed money that is repaid with interest. Most homes in the United States are bought using loans through mortgages.
Application – Form a borrower must fill out, disclosing income, savings, assets and debts, to obtain a mortgage.
Interest rate – A rate that is charged to a borrower for the privilege of using the money given by a lender. Different mortgages and banks have different interest rates that may change over time (adjustable) or stay the same (fixed-rate).
Home equity – The difference between the fair market value of a home and the amount still owed on it's mortgage is a house's equity.
Home equity line of credit – A secondary mortgage loan that allows a borrower to get money against the equity of his home.
Refinance transaction – The refinance process involves paying off one loan with the proceeds of another new loan using the same property.
Reverse mortgage – Also called a Home Equity Conversion Mortgage, this reverse loan is reserved for seniors 62 and older. In this case the lender, usually a bank, makes payments to the homeowner in return for the equity on a home. Borrowers can qualify for this program based on their age and the value of their house.
Whether you're looking for a loan officer or mortgage broker in your area, our association can be a helpful resource. Our directory provides listings for all of the most established mortgage brokers across the nation.
Mortgage brokers can advise residential and commercial consumers on all aspects of obtaining and maintaining a mortgage. A mortgage is essentially a loan taken out to finance the purchase of real estate, such as a home or business office space. The bank specifies how much you can afford to pay, approves you for the loan, then expects monthly payments on that loan. Failure to pay the loan at the designated times can result in loss of the property.
Mortgage brokers are middlemen between financial institutions and individuals or businesses. They facilitate the mortgage loan process between two parties, acting as sellers of mortgage products for lenders. These company brokers must follow regulations regarding compliance with banking and finance laws. Mortgage brokers work with the client to get the best rates and terms possible on the mortgage so that both parties are satisfied.
Consult with a broker to help with anything from commercial property to reverse mortgages to managing bad credit. Mortgage brokers can work independently or for a mortgage lending firm. They also offer help with personal loan refinancing, reduction of monthly payments, and home equity loan pay-off terms. They can issue second mortgages, reverse mortgages, and develop contracts. Obtain applications from them to begin the whole process.
To further help them with their mortgage decisions, consumers can also visit brokers in person or on the web to obtain handy interest rate calculators, free quotes, and listings of fees. Looking to refinance? Want a lender who will give you the best rate sand terms? Seek out a licensed mortgage broker near you to find the best consultant for your real estate buying needs, such as refinance plans.