Mortgage Products: The 15 FRM

Author: Tony Robinson

In order to understand the theory behind the fixed rate mortgage, you have to understand the mindset of the mortgage banker and the mortgage borrower of thirty or forty years ago. The Great Depression left a tremendous impression on the minds of this country, so much so, that one of the popular mortgage products of the turn of the century, the interest only loan, was shelved, never to be heard from again. Not until the recent explosion in real estate prices and the mortgage industries efforts to accommodate home buyers of all types has there been such mortgage variety.

The trend after the depression, through post-war America, and really until the late 1990s was the fixed rate mortgage. That's the type of mortgage the bank offered, and the public generally didn't consider anything else. Why did so many individuals, as well as banking institutions popularize the fixed rate mortgage? This loan type, more than any other product available, was a security blanket for the banker, and the homeowner. The banker, offering the mortgage loan, was assured of a 20% down payment and a secure monthly payment with a fixed interest rate that would benefit the bank. The homeowner received a set monthly payment amount that was affordable, and a fixed number of years to repay the loan, usually 15, 20, or 30.

This article will discuss the 15 year fixed rate mortgage, and the advantages offered by the 15 versus the 20 versus the 30 year option. We have really already established the ""why"" when it comes to the fixed rate mortgage option in general, but we need to look at now, the term of the fixed rate mortgage. ""Why"" would you choose the 15, or the 20, or the 30? Well it really depends on two factors: where you are in your life, and what you can afford.

If you happen to be in your 20s, with a lifetime to pay for your home, but not a lot of income, and two children to raise the 30 year option would get you the house, with as low a monthly payment as possible. Granted, you will pay more in interest, but you won't have to pay out quite as much each month. If money is tight, a lower payment can mean the difference between buying a home and renting a home.

If you're in your mid-to-late thirties, still quite a long way from retirement, the kids are almost grown, and your monthly income is substantially greater than it was 10 years ago, the 15 or 20 year mortgage would suit your needs. Most often, the homeowner will choose the 20 year option, and make principal payments when affordable.

But let's say you're in your late 40s and the amount of time until retirement is growing ever short; you have your children raised, and your monthly income is nice to look upon. What option would you take? For most, it is the opportunity to pay for the home as quickly as possible, thus the 15 year fixed rate mortgage is the mortgage of choice.

Many homeowners who purchase a home in their mid-to-late forties are purchasing their second home; some even have a substantial amount of equity, or down payment for the home. If this is the case, the 15 year fixed rate mortgage, works to an even greater advantage, in that the homeowner has substantial equity, a lowered monthly payment, and a preset monthly payment amount. The interest is tax deductible, and they are now secure in the knowledge that their home will be fully paid out prior to retirement.

When trying to decide which mortgage is the mortgage for your situation, you need to have a mortgage broker or banker that has an excellent understanding of your financial status, your goals and objectives for your mortgage purchase, and your ability to absorb unexpected expenses or change. All of these factors affect your ability to repay a loan, the choice you will make on a loan, and the satisfaction you will have during the servicing of your mortgage loan.

For these reasons, and others, the fixed rate mortgage, especially the 15 year fixed rate mortgage is often the mortgage product of choice, especially for the baby boomers, and the forty-something homeowners today.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Interest Only Mortgage versus Balloon Notes

Author: Tony Robinson

You would think the interest only mortgage and the balloon have nothing in common, but they do; they're closer than the FRM and the ARM in terms of comparative benefits. To fully appreciate the balloon note option, since for many years it's taken the brunt of the ""bad product"" review; let's compare it to the interest only mortgage.

The old balloon note, long the product to be avoided, has suddenly become a better friend, even to the more reserved bank mortgage officers. In utilizing the balloon note option, a borrower makes amortized principal and interest payments on the note, as if it were a 30 year note; the catch: if it's a 5 year balloon, the entire balance of the unpaid principal is due at the end of five years, if it's a 10 year balloon, then the entire unpaid balance is due at the end of 10 years. The unsavory aspect of these types of notes has always been the huge payment that was due at the end of a specified amount of time. If the buyer isn't able to find financing at the end of the 5 or 10 year term, or if the property has dropped in value, it's a great way to be bankrupt, or have the property foreclosed on. If you intend to sell your home within a 5 year period, the balloon note option is an excellent alternative that offers a lower monthly payment. But, suppose you don't sell the home? Well you either must come up with the balance of the note, or find an alternative mortgage product. The biggest problem here occurs as you try to deal with the variables in the situation, when the balloon note matures.

When the note matures, if the interest rates are high, or if the real estate market is experiencing a slump, you may be forced to accept a higher interest rate, or produce a very big down payment with a new note. Either solution means that the conditions aren't favorable for the homeowner. But is this so very different from the interest only mortgages?

The interest only mortgages are interest only for a specific term of time; then the principal and interest become due on the note, at a much higher monthly rate. The only difference here is that the lending institution is locked into a 20 or 30 year note. But the borrower is no better off, if he or she cannot afford the payments at the higher level, there still exists a greater potential for bankruptcy or foreclosure.

Thanks to the booming real estate market, and the expansion of the mortgage product market, the increase in purchasing power has enabled many prospective homeowners to actually make a dream a reality. However at some point, the market will cease to boom, and the mortgage market will cease to expand. Will the consumer that purchased the interest only mortgage or the balloon note, be able to afford the consequences, should the home suddenly not be worth the original loan amount? Let's hope for the sake of the unwary homeowner, this is a situation we do not soon encounter. And, for the most part, I don't believe we will. Thanks to the natural disasters along the gulf coast, and the continued demand for real estate, building materials, and existing housing, the prices we're currently experiencing, along with the growth we've seen for the past couple of years, should continue.

There are other, more stable loan products available, but these products don't provide the kind of flexibility for the mortgage lender or the borrower, that the interest only mortgages and balloon notes do. They also don't pose the risk these two loans. The interest rates, however, are very competitive on the interest only and balloon, and I don't' look for the general public to decide in favor of safety over savings. After all, nothing ventured, nothing gained.

Now, you see the old balloon note looks a little sharper than he did before the interest only mortgage moved in. At least with the balloon note a part of the monies paid each month are applied to the principal balance. With the interest only mortgage, all of the payment monies are applied to the interest, so at the end of the interest only term, you still owe as much principal as you did in the beginning. It would seem to me, it's six of one, half a dozen of the other. The borrower really isn't making any progress, either way.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Is Your Credit Working Against Your Mortgage Options?

Author: Tony Robinson

Okay, now here's an interesting spin on an already risky product, let's give the bad credit crowd or the low credit score crowd, a chance to make an even worse decision, and finance a home they can't really afford and obviously will have trouble making on-time and dependable payments. Sometimes, the products and situations that you see in the everyday world of researching these loans, is truly amazing and this is one of those classic situations. There are actually mortgage companies that advertise these interest only mortgage options for the consumer with the bad credit or slow credit record.

Now, what I'd like to know is why the mortgage company, in all good faith, would want to take a risk such as this. It's risky financing mortgages for consumers with bad credit, even if you're financing with good solid collateral, and it is well within their means to pay. You take the consumer and the mortgage loan outside those realms of operation, and you're just simply a problem waiting to happen.

Maybe we should have an agency that's known as the ""mortgage police"" and when there's a clear and evident violation of just good sound common sense, a whistle blows; the computer locks up, and now enters the mortgage police. I truly believe the consumer, if not the mortgage company would be a lot better off, especially when the consumer has time to really absorb the basic facts about interest only mortgages, and the mess they can make of your finances; in the case of the bad credit consumer, the further mess they can make of your finances.

With all the government control that regulates the mortgage loan industry, and all the statistics that are published about the consumer with a bad or slow credit rating, who do you suppose thought it would be a good idea to give them an interest only mortgage, that they more than likely will have further trouble paying? You wonder if Alan Greenspan is aware of situations like this, and if he takes it into consideration when raising the prime lending rate? Do you suppose there's a number factor for the ""really going to default on these mortgages"" segment of his equation that determines our prime rate?

Then you have the individual who simply has a low credit score because he has too much credit on revolving charge cards, store cards, etc. How does this affect his or her ability to get a loan? Well, it doesn't necessarily prohibit their ability to secure funding, of course not. What it does accomplish, and this is where the mortgage and lending companies have decided to make a lot of profit, is up the qualifying interest rate. So, if you're credit score is low, you will pay a higher rate of interest. You can still obtain the mortgage, but it will be at several points higher than an individual with an excellent credit score.

As our country spirals ever further into debt, (for if you bother to read any of the headlines lately, you know that we are at the lowest point ever in home mortgage equity. Savings are at a negative balance, and we continue to spend, spend, spend) we do not attempt to encourage a more saving attitude in our consumer advocacy branches of government; we make it easier to spend more. With the passing and implementation of the new bankruptcy laws, I believe we will begin to see even more Americans in trouble with their finances, and offering them more credit, interest only options, and second mortgages does not serve them well.

Let's hope Alan uses more foresight and plain good business sense than our mortgage loan brokers, especially the ones that came up with this genius idea!

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Is Home Mortgage Good?

Author: Dr. Drew Henry

Basically, a mortgage refers to a long-standing credit that a debtor obtains from a financial institution or from a property seller. If you are in a need of large amount of money to buy a house, a home mortgage is a good alternative for you.

In most cases, the house is the usual collateral for the mortgage, thus the term ""home mortgage"". In turn, the mortgage lender will be entitled to some legal rights upon the property as long as the mortgage is in full force or until the debtor pays back the loan.

A home mortgage serves as security for loans, thus giving the lender the power to acquire the property through foreclosure in the event that the borrower fails to pay the loan on time.

Normally, a home mortgage is comprised of a large loan. That's why in most cases a home mortgage can take 15 to 30 years before the borrower can pay back the due amount. In a home mortgage, the due amount to be paid by the borrower stipulates the principal amount of the mortgage and the interest owed relative to the outstanding balance. The real estate taxes and property insurance are also factored into the total mortgage balance.

Some home owners who find it difficult to make their mortgage payments may opt for refinancing of their mortgage. But for those who wish to pay off a home mortgage quickly, there are things to be considered...

1. Make sure you have a stable source of income. Organize your overall financial assets to ensure that paying off your mortgage will not over-extend your cash flow. There are many such considerations that should be carefully planned and organized before resorting to pay-off your home mortgage.

2. You should have a ready reserve of cash just in case of emergencies. This can be in the form of stocks and bonds, a bank savings account, or any other readily available form of cash.

3. Look at your overall financial status. Paying off your home mortgage can be a rewarding experience, but be sure to consider your overall financial status before making the decision to do so. The wrong decision can put you at great financial risk.

If you have considered above considerations already and you think you ready for it, then go for it. After all, nothing beats a worry-free, mortgage-free financial status.

About the author: Dr. Drew Henry maintains a number of websites about Loans, including Mortgage Loan , Mortgage Loan Calculator , and Mortgage loans .

Mortgage Refinance After Bankruptcy!

Author: Elizabeth Grant

If you are considering remortgaging your home after Bankruptcy, there are many factors to consider in the decision making process. Here we discuss some of the essentials topics that will enable you to decide if releasing equity from your home is your best option.

Becoming bankrupt

If you are in a bad debt situation and are thinking of declaring yourself bankrupt, then the first thing you should do is get legal and financial advice to make sure that this is your best option. Don't leap ahead to thinking about refinancing after bankruptcy if you haven't even decided if bankruptcy is the best thing for you.

Once you have taken the decision to become bankrupt, or you have been declared bankrupt by your creditors, you will need to take some time to deal with the immediate consequences of bankruptcy and work out your next moves. Think about what you want to achieve in the future. If your house has had to be sold, or part-sold in order to clear your debts, then you may want to look into mortgage refinance after bankruptcy so that you can see what your options are.

My options

If you have been declared bankrupt, but your period of bankruptcy has ended because all your debts have been cleared, you can look at your options for the future. These might include:

-Employment. If you were self-employed before bankruptcy, then you may want to consider being an employee. This can remove the stress of self-employed earnings and can also put you in a better position when it comes to applying for loans or mortgage refinance after bankruptcy.

-Debt. The experience of being declared bankrupt should have convinced you to take a different attitude to debt, and make sound financial plans, with help and advice where needed, to ensure that you don't run into such big problems again.

-Restrictions. Expect some restrictions to be placed on you, even though you have been discharged from bankruptcy. Most credit applications will ask if you have ever been declared bankrupt and you must answer honestly. Your chances of getting a loan at standard rates may be affected by your bankruptcy for some time.

-Advice. Even after your period of bankruptcy is over, it is worth retaining some of the advisers you had to use. Not only will they know your financial background, but they should be well-placed to advise you in the future.

Getting Advice

If you are thinking about mortgage refinance after bankruptcy, then all the above considerations apply to you. A mortgage lender will want to know that you are serious about not returning to a position of bad debt and they will also be reassured if you are in full or part-time employment. There will be restrictions placed on you because of your credit history and you will need professional mortgage advice to ensure that you get the best mortgage product for your needs. If you don't already have a mortgage adviser, then talk to an experienced mortgage broker who can talk you through the mortgage refinance products that are available to you, and advise you on how to approach your application to get the best results. Whilst getting mortgage refinance after bankruptcy is a good idea, because it can give you access to lower interest rates than some other mortgage deals, you will need to take advice to make sure it's the right route at the right time.

About the author: Elizabeth Grant writes exclusively for The Mortgage Broker specialist websites. To read more of Elizabeth's articles on Adverse Credit Mortgages please visit the Adverse Mortgage Centre .

Mortgage Companies: Specialty Guys

Author: Tony Robinson

Let's talk about the specialty guys, the mortgage interest companies. Why do they exist in what do they do for the average consumer? Actually a lot. Mortgage interest companies exist for the pure and simple reason of originating mortgage loans. If mortgage loans are your specialty then quite naturally you would assume you're very good at what you do. And most of the mortgage companies are very good at what they do. So much so, that real estate prices and mortgage loan products have seen a threefold increase. What does this mean for the consumer and what does this say about our mortgage companies?

What this means for the consumer is that now there are being offered a wide range of the affordable, and quite accommodating loan products. What does this say about our mortgage companies? That today more than ever mortgage companies are creative with their efforts to accommodate a growing and varied range of customers. Mortgage companies offer mortgage loans that range from interest only, 1% interest only, to the standard fixed rate mortgage loan product. This article will take a moment to examine the mortgage companies and the mortgage products offered by these mortgage companies.

If you need to apply for a mortgage today, you only have to go online to find your nearest mortgage company and a detailed list of the mortgage products they provide. Even if you don't want to complete the application online, you are supplied with all the necessary information to make an informed and educated mortgage decision without ever leaving the comfort of your home. Almost all of the mortgage companies in existence today make use of the online environment to advertise their business and their business products. But, this is not the only avenue for advertising the mortgage companies will use. Many of the mortgage companies today use advertising venues via the newspaper billboards and radio. By far the largest vehicle of advertising used by the mortgage companies today is through the use of the television; it is via the television that you will most often hear about mortgage-company's and the mortgage products offered.

Mortgage companies compete for your business by offering lower then standard interest rates, and extremely unusual by traditional lending standards, mortgage products. The increase in the number of interest-only loan products is a testament to the use of non- traditional products in order to increase customer base. However, the consumer is a winner as far as the interest rate expense because many of the specialized mortgage companies can offer a lower interest rate than your local and traditional lending companies, such as banks. Due to the specialty of the mortgage company and the mortgage product interest rates are sometimes a full 2 to 3% lower then the rate offered through the traditional lending institution.

Factor in the advent of the online mortgage companies, such as Quicken Loans, and you have an even lower interest rate offering due to a lower overhead expense. What role has the online mortgage company played in lowering interest rates, and pulling from the traditional and physical-existence mortgage companies? The influence has been quite great; many consumers have shopped the online environment in order to obtain the low interest rates offered. Companies such as Quicken and Ditech have experienced phenomenal growth thanks to the online mortgage company existence and television advertising.

The government has greatly encouraged the growth and competitive nature of the mortgage company industry through the use of government programs such as Fannie Mae and Freddie Mac, and has empowered the mortgage companies with a means to sell existing mortgages in order to originate new ones. Apparently, the government wishes to encourage the success of the specialty companies with the specialty rates!

I believe the existence of mortgage companies, the ever-increasing range of mortgage products and a continued increase a real estate prices has helped to contribute to the stabilization of an extremely low interest rate, which in turn has fueled the growth of the mortgage companies and the range of products offered. As you can see, this is a market of interconnected affectation and the consumer seems to be the greatest benefactor. So carry on specialty guy!

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The 20 Year ARM

Author: Tony Robinson

As you begin to traverse the actual home appraisal, the loan amortization, your down payment, and all the dots that must be connected in order to make the dream a reality, you suddenly realize that you may not be able to afford a payment on the Fixed Rate Mortgage plan. What other options are available? Well, there's the Adjustable Rate Mortgage that is a close first cousin to the Fixed Rate mortgage, just a little riskier. What products are available with the Adjustable Rate Mortgage? What advantages does the Adjustable Rate Mortgage option offer, and what are they drawbacks, if any? This article examines the advantages and disadvantages, if any, of the Adjustable Rate Mortgage and the 20 Year ARM option.

The Adjustable Rate Mortgage, or ARM, is a more affordable option for homeowners who have a fairly tight monthly budget, and who have a need for bigger house, lower payment. The typical ARM customer wishes to build equity in their home; however they need the lowest monthly payment possible, for a certain number of years. The homeowner this program most benefits is the individual who expects income increases to occur within a few short years, but also has an expanding family with a need for space. The 20 Year ARM is one of the more used ARM options, simply because of the attractive monthly payment, and the length of time the homeowner has to build more equity in an affordable payment.

An ARM works in this way: when you set up your mortgage on an ARM, the interest rate you have will only be set for a very short period of time, normally only 6,9, or 12 months. At the end of that period, the interest rate will be re-evaluated, and if the rates have increased based on the prime, your interest rate will also increase; once again, for a short, set period of time. The benefit derived from this type of loan, during today's economy, is that the interest rates are at an all time low. That equates to big savings for current home buyers, and homeowners who refinance.

The 20 Year ARM allows the mortgage loan to operate as an adjustable rate mortgage for 20 years, automatically converting to a fixed rate loan after that 20 year period has expired, for another 5, 7, or 10 years.

The disadvantage to this type of loan occurs when interest rates begin to rise. As the rate rises for the lending institution, it also rises for you, the homeowner. The home mortgage product market can be very confusing, and quite frustrating if you don't take the time to fully research and understand your mortgage options. Another great benefit to the ARM, when interest rates are low, is that it allows you to build equity faster than with a standard fixed rate mortgage. But if interest rates begin to rise, quickly, your opportunity for building equity quickly, is greatly diminished, because more of the payment is directed to the interest on the loan. If you fall into the category of the typical homeowner, ARMs aren't as attractive as the fixed rate mortgage; but let's face it the typical homeowner category seems to be shrinking. All in all, if you are buying a home, and your income level is expected to increase over the next 10 to 15 years, or your expenses are going to drastically decrease, you would probably benefit from the standard 20 Year ARM that converts to a FRM. All the other complicated options still simply do not benefit the average homeowner today. Now, if you don't happen to be average, and you have a financial advisor that can work with you closely, I'd recommend that you consider all those other options, but only with the assistance of a trained financial analyst. After all, your home is a purchase you definitely do not want put at risk. The 20Year ARM is a good, solid product that allows the homeowner to build equity, with a low interest payment each month, while also providing the lending institution the opportunity to reset an interest rate, if they should begin to rise quickly. This is one of the greatest reasons banks tend to promote the ARMs as much as they do the standard FRMs: they're fairly safe, time-tested products.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The 20 FRM

Author: Tony Robinson

In order to understand the theory behind the fixed rate mortgage, you have to understand the mindset of the mortgage banker and the mortgage borrower of thirty or forty years ago. The Great Depression left a tremendous impression on the minds of this country, so much so, that one of the popular mortgage products of the turn of the century, the interest only loan, was shelved, never to be heard from again. Not until the recent explosion in real estate prices and the mortgage industries efforts to accommodate home buyers of all types has there been such mortgage variety.

The trend after the depression, through post-war America, and really until the late 1990s was the fixed rate mortgage. That's the type of mortgage the bank offered, and the public generally didn't consider anything else. Why did so many individuals, as well as banking institutions popularize the fixed rate mortgage? This loan type, more than any other product available, was a security blanket for the banker, and the homeowner.

The banker, offering the mortgage loan, was assured of a 20% down payment and a secure monthly payment with a fixed interest rate that would benefit the bank. The homeowner received a set monthly payment amount that was affordable, and a fixed number of years to repay the loan, usually 15, 20, or 30.

This article will discuss the 20 year fixed rate mortgage, and the advantages offered by the 20 versus the 15 versus the 30 year option. We have really already established the ""why"" when it comes to the fixed rate mortgage option in general, but we need to look at now, the term of the fixed rate mortgage. ""Why"" would you choose the 15, or the 20, or the 30? Well it really depends on two factors: where you are in your life, and what you can afford.

If you happen to be in your 20s, with a lifetime to pay for your home, but not a lot of income, and two children to raise the 30 year option would get you the house, with as low a monthly payment as possible. Granted, you will pay more in interest, but you won't have to pay out quite as much each month. If money is tight, a lower payment can mean the difference between buying a home and renting a home.

If you're in your mid-to-late thirties, still quite a long way from retirement, the kids are almost grown, and your monthly income is substantially greater than it was 10 years ago, the 15 or 20 year mortgage would suit your needs. Most often, the homeowner will choose the 20 year option, and make principal payments when affordable. But let's say you're in your late 40s and the amount of time until retirement is growing ever short; you have your children raised, and your monthly income is nice to look upon. What option would you take? For most, it is the opportunity to pay for the home as quickly as possible, thus the 15 year fixed rate mortgage is the mortgage of choice.

Many homeowners who purchase a home in their mid-to-late thirties are purchasing their second home; some even have a substantial amount of equity, or down payment for the home. If this is the case, the 20 year fixed rate mortgage, works to an even greater advantage, in that the homeowner has substantial equity, a low monthly payment, and a preset monthly payment amount. The interest is tax deductible, and they are now secure in the knowledge that their home will be fully paid out prior to retirement.

When trying to decide which mortgage is the mortgage for your situation, you need to have a mortgage broker or banker that has an excellent understanding of your financial status, your goals and objectives for your mortgage purchase, and your ability to absorb unexpected expenses or change. All of these factors affect your ability to repay a loan, the choice you will make on a loan, and the satisfaction you will have during the servicing of your mortgage loan. For these reasons, and others, the fixed rate mortgage, especially the 20 year fixed rate mortgage is often the mortgage product of choice, especially for the thirty-something homeowners today.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The Adjustable Rate Mortgage

Author: Tony Robinson

You've found the home of your dreams, you're pre-qualified for a loan, and everything looks absolutely rosy. At first. As you begin to traverse the actual home appraisal, the loan amortization, your down payment, and all the dots that must be connected in order to make the dream a reality, you suddenly realize that you may not be able to afford a payment on the Fixed Rate Mortgage plan. What other options are available? Well, there's the Adjustable Rate Mortgage that is a close first cousin to the Fixed Rate mortgage, just a little riskier. What advantages does the Adjustable Rate Mortgage option offer, and what are they drawbacks, if any? This article examines the advantages and disadvantages, if any, of the Adjustable Rate Mortgage.

The Adjustable Rate Mortgage, or ARM, is a more affordable option for homeowners who have a fairly tight monthly budget, and who have a need for bigger house, lower payment. The typical ARM customer wishes to build equity in their home; however they need the lowest monthly payment possible, for a certain number of years. The homeowner this program most benefits is the individual who expects income increases to occur within a few short years, but also has an expanding family with a need for space. An ARM works in this way: when you set up your mortgage on an ARM, the interest rate you have will only be set for a very short period of time, normally only 6,9, or 12 months. At the end of that period, the interest rate will be re-evaluated, and if the rates have increased based on the prime, your interest rate will also increase; once again, for a short, set period of time. The benefit derived from this type of loan, during today's economy, is that the interest rates are at an all time low. That equates to big savings for current home buyers, and homeowners who refinance.

The disadvantage to this type of loan occurs when interest rates begin to rise. As the rate rises for the lending institution, it also rises for you, the homeowner. Today, there are spin-offs on the ARM base product, that allow homeowners to operate under an ARM for a specified number of years, and then the loan converts to a fixed rate mortgage. There are also the ARMs that offer an interest only option for a specific number of years, then it converts to a basic ARM for a specified number of years, and then you have the option to convert the ARM to an FRM. The home mortgage product market can be very confusing, and quite frustrating if you don't take the time to fully research and understand your mortgage options.

Another great benefit to the ARM, when interest rates are low, is that it allows you to build equity faster than with a standard fixed rate mortgage. But if interest rates begin to rise, quickly, your opportunity for building equity quickly, is greatly diminished, because more of the payment is directed to the interest on the loan. If you fall into the category of the typical homeowner, ARMs aren't as attractive as the fixed rate mortgage; but let's face it the typical homeowner category seems to be shrinking.

There are so many options with the ARM basic model, that the ARM option loans have become more popular than just the basic ARM. The 3,5,7 and 10 year ARMs that offer interest only options for a set period of time, or that offer 1% interest for the first month, then there are the ARMs that offer interest only for 3,5,7, or 10 years, then a standard ARM is established, or a FRM is established.

The mortgage industry has made available so many mortgage choices, that it's often very difficult for the average consumer to consider all the options and make the most wise choice, simply because you need a spreadsheet and calculator just to compare the options, never mind making a decision about the best options.

All in all, if you are buying a home, and your income level is expected to increase over the next 10 years, or your expenses are going to drastically decrease, you would probably benefit from the standard ARM that converts to a FRM. All the other complicated options still simply do not benefit the average homeowner today. Now, if you don't happen to be average, and you have a financial advisor that can work with you closely, I'd recommend that you consider all those other options, but only with the assistance of a trained financial analyst. After all, your home is a purchase you definitely do not want put at risk.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The Fixed Rate Mortgage

Author: Tony Robinson

In order to understand the theory behind the fixed rate mortgage, you have to understand the mindset of the mortgage banker and the mortgage borrower of thirty or forty years ago. The Great Depression left a tremendous impression on the minds of this country, so much so, that one of the popular mortgage products of the turn of the century, the interest only loan, was shelved, never to be heard from again. Not until the recent explosion in real estate prices and the mortgage industries efforts to accommodate home buyers of all types has there been such mortgage variety.

The trend after the depression, through post-war America, and really until the late 1990s was the fixed rate mortgage. That's the type of mortgage the bank offered, and the public generally didn't consider anything else. Why did so many individuals, as well as banking institutions popularize the fixed rate mortgage? This loan type, more than any other product available, was a security blanket for the banker, and the homeowner.

The banker, offering the mortgage loan, was assured of a 20% down payment and a secure monthly payment with a fixed interest rate that would benefit the bank. The homeowner received a set monthly payment amount that was affordable, and a fixed number of years to repay the loan, usually 20 or 30.

Since interest rates weren't fluctuating then, as now, and real estate prices were fairly predictable, this was a win-win situation for everybody. Then came the extremely high interest rates of the 80s, and suddenly bankers were locked into mortgage with a fixed interest of only 7 or 8 percent. It is at this juncture that the lending institutions and the mortgage companies began to re-think the fixed rate mortgage. Maybe adjustable rate mortgages were better suited for such a fluctuating market; they could then reassess the interest rate if the rates skyrocketed. This wasn't something the homeowner was in favor of using, but really what choice do you have? And usually, at some point, the rate will swing in the other direction. That's exactly what happened during the late 90s and early part of 2000.

Since 2001, interest only loans, 125's and ARMs have grown in popularity; on average, the interest only segment of the market is now around 30%. That's an increase from 3% in 2001. The market has never before experienced the variety now available for mortgage products, but never before have we experienced the growth in real estate prices and lowered interest rates that we have seen in the last 5 years.

The beauty of all this growth, the fixed rate mortgage is like the little engine that could. It's still around, still chugging up the hill, and still getting the job done. Statistically, many homeowners never payout their mortgage; they either sell their home or they refinance before the mortgage completes. This may be true, but for many of the homeowners I questioned, their home purchase was for the purpose of establishing a permanent residence, one in which to retire and live out their lives. That makes the good old standard 20 year Fixed Rate Mortgage look really good, even the 30 is still around (although not quite as appealing). While there are places in this country that the real estate market has really boomed, and the real estate prices are soaring, there are still many that have not felt any effect, and for whom the appraisal prices of the 90s are still good today. When you consider the trade-off for the adjusting interest rate, the flexibility of paying interest only, and the borrowing power of the 125, it's hard to imagine that they are still homeowners who wish to use the fixed rate mortgage. That's because, however you're not looking at the entire picture. Many of these homeowners have experienced at least one job layoff. Many of the baby boomers that bought houses 10 or 15 years ago were getting ready for retirement, and many of the homeowners live on fixed budgets.

The purpose in purchasing a home for the vast majority of these homeowners was to provide for themselves a secure, paid for place to live. These homeowners aren't interest in how to invest the equity of their home, nor are they interested in the other options they could exercise when investing their mortgage payment elsewhere. They're simple interested in paying for their home, and the fixed rate mortgage is the slow and steady payment that will accomplish this task.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The 30 Year ARM

Author: Tony Robinson

As you begin to traverse the actual home appraisal, the loan amortization, your down payment, and all the dots that must be connected in order to make the dream a reality, you suddenly realize that you may not be able to afford a payment on the Fixed Rate Mortgage plan. What other options are available? Well, there's the Adjustable Rate Mortgage that is a close first cousin to the Fixed Rate mortgage, just a little riskier when it comes to establishing the interest rate. What products are available with the Adjustable Rate Mortgage? What advantages does the Adjustable Rate Mortgage option offer, and what are they drawbacks, if any? This article examines the advantages and disadvantages, if any, of the Adjustable Rate Mortgage and the 30 Year ARM option.

The Adjustable Rate Mortgage, or ARM, is a more affordable option for homeowners who have a fairly tight monthly budget, and who have a need for bigger house, lower payment. The typical ARM customer wishes to build equity in their home; however they need the lowest monthly payment possible, for a certain number of years. The homeowner this program most benefits is the individual who expects income increases to occur within a few short years, but also has an expanding family with a need for space. The 30 Year ARM is one of the less used ARM options, simply because of the length of time before expiration; generally, homeowners will seek to establish a set interest rate before the 30 year term is over.

An ARM works in this way: when you set up your mortgage on an ARM, the interest rate you have will only be set for a very short period of time, normally only 6,9, or 12 months. At the end of that period, the interest rate will be re-evaluated, and if the rates have increased based on the prime, your interest rate will also increase; once again, for a short, set period of time. The benefit derived from this type of loan, during today's economy, is that the interest rates are at an all time low. That equates to big savings for current home buyers, and homeowners who refinance.

The 30 Year ARM allows the mortgage loan to operate as an adjustable rate mortgage for 15 years, automatically converting to a fixed rate loan after that 15 year period has expired, for another 5, 7, or 10 years.

The disadvantage to this type of loan occurs when interest rates begin to rise. As the rate rises for the lending institution, it also rises for you, the homeowner. The home mortgage product market can be very confusing, and quite frustrating if you don't take the time to fully research and understand your mortgage options. Another great benefit to the ARM, when interest rates are low, is that it allows you to build equity faster than with a standard fixed rate mortgage. But if interest rates begin to rise, quickly, your opportunity for building equity quickly, is greatly diminished, because more of the payment is directed to the interest on the loan. If you fall into the category of the typical homeowner, ARMs aren't as attractive as the fixed rate mortgage; but let's face it the typical homeowner category seems to be shrinking. All in all, if you are buying a home in your early thirties, your income level is expected to continually increase over the next 15 years, and your expenses are going to drastically decrease, you would probably benefit from the standard 30 Year ARM that converts to a FRM. All the other complicated options still simply do not benefit the average homeowner today. Now, if you don't happen to be average, and you have a financial advisor that can work with you closely, I'd recommend that you consider all those other options, but only with the assistance of a trained financial analyst. After all, your home is a purchase you definitely do not want put at risk. The 30 Year ARM is a good, solid product that allows the homeowner to build equity, with a low interest payment each month, while also providing the lending institution the opportunity to reset an interest rate, if they should begin to rise quickly. This is one of the greatest reasons banks tend to promote the ARMs as much as they do the standard FRMs: they're fairly safe, time-tested products.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The 30 FRM

Author: Tony Robinson

In order to understand the theory behind the fixed rate mortgage, you have to understand the mindset of the mortgage banker and the mortgage borrower of thirty or forty years ago. The Great Depression left a tremendous impression on the minds of this country, so much so, that one of the popular mortgage products of the turn of the century, the interest only loan, was shelved, never to be heard from again. Not until the recent explosion in real estate prices and the mortgage industries efforts to accommodate home buyers of all types has there been such mortgage variety.

The trend after the depression, through post-war America, and really until the late 1990s was the fixed rate mortgage. That's the type of mortgage the bank offered, and the public generally didn't consider anything else. Why did so many individuals, as well as banking institutions popularize the fixed rate mortgage? This loan type, more than any other product available, was a security blanket for the banker, and the homeowner.

The banker, offering the mortgage loan, was assured of a 20% down payment and a secure monthly payment with a fixed interest rate that would benefit the bank. The homeowner received a set monthly payment amount that was affordable, and a fixed number of years to repay the loan, usually 15, 20, or 30.

This article will discuss the 30 year fixed rate mortgage, and the advantages offered by the 15 versus the 20 versus the 30 year option. We have really already established the ""why"" when it comes to the fixed rate mortgage option in general, but we need to look at now, the term of the fixed rate mortgage. ""Why"" would you choose the 15, or the 20, or the 30? Well it really depends on two factors: where you are in your life, and what you can afford.

Let's say you're in your late 40s and the amount of time until retirement is growing ever short; you have your children raised, and your monthly income is nice to look upon. What option would you take? For most, it is the opportunity to pay for the home as quickly as possible, thus the 15 year fixed rate mortgage is the mortgage of choice.

If you're in your mid-to-late thirties, still quite a long way from retirement, the kids are almost grown, and your monthly income is substantially greater than it was 10 years ago, the 15 or 20 year mortgage would suit your needs. Most often, the homeowner will choose the 20 year option, and make principal payments when affordable.

But, if you happen to be in your 20s, with a lifetime to pay for your home, not a lot of income, and two children to raise the 30 year option would get you the house, with as low a monthly payment as possible. Granted, you will pay more in interest, but you won't have to pay out quite as much each month. If money is tight, a lower payment can mean the difference between buying a home and renting a home.

When trying to decide which mortgage is the mortgage for your situation, you need to have a mortgage broker or banker that has an excellent understanding of your financial status, your goals and objectives for your mortgage purchase, and your ability to absorb unexpected expenses or change. All of these factors affect your ability to repay a loan, the choice you will make on a loan, and the satisfaction you will have during the servicing of your mortgage loan. For these reasons, and others, the fixed rate mortgage, especially the 30 year fixed rate mortgage is often the mortgage product of choice, especially for the young person today, fresh from college, with a starter home, a small family, and a tight budget. Granted, there will be a greater amount of interest paid out over the life of the loan, but there's always the opportunity in 10 or 15 years to refinance the loan, and setup bigger payments, with less interest paid out over the life of the mortgage. After all, the mortgage payment isn't the only expense associated with homeownership, and all the expense factors must be considered; new homeowners certainly do not want a crash course in credit problems!

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The Balloon Note

Author: Tony Robinson

Ever been to watch the hot-air balloon in flight? It's an absolute beautiful sight. What is the down side to the hot air balloon? Unless all the conditions are just right, the balloon can crash, causing a life-threatening situation. The balloon mortgage note, can affect the same result, you just don't fall from the sky. You fall from the home. This article takes a look at the balloon mortgage note, and the situations it benefits, and the situations it does not.

Before you can discuss how well something does or does not work, you really should understand what it is. The balloon mortgage note allows you to borrow money to purchase a home, and establish an affordable monthly payment, often with a very good interest rate. The amortization of the amount borrowed may be for a 30 year term; however the life of the balloon mortgage generally does not exceed 72 or 84 months, 6 to 7 years. At the end of the balloon term, a huge ""balloon payment"" is due. If you intend to sell your home within a 7 year period, the balloon note option is an excellent alternative that offers a lower monthly payment. But, what happens if you don't sell the home? Well you either must come up with the balance of the note, or find an alternative mortgage product. The biggest problem that this situation creates is your ability to deal with the variables in the situation, when the balloon note matures.

At the time the note matures, if the interest rates are high, or if the real estate market is experiencing a slump, you may be forced to accept a higher interest rate, or produce a very big down payment with a new note. Either way, the conditions aren't favorable for the homeowner.

What is the difference between the balloon note and the Adjustable Rate mortgage? Actually, quite a lot. The balloon note, of course we have discussed above. But we'll hit the high spots once more: The balloon mortgage note allows you to borrow money to purchase a home, often with a very good interest rate; the life of the balloon mortgage generally does not exceed 6 to 7 years. At the end of the balloon term, a huge ""balloon payment"" is due. Well, with the ARM, your interest rate is fixed for a certain period of time, and at the end of that term, there is an agreed upon fixed rate mortgage that picks up the balance of the loan, with a previously agreed upon interest limit, and a fixed number of years. You see, with the ARM, there is more of an assurance provided to the homeowner that he or she will be eligible for a particular mortgage, with a set limit on the interest rate. Current market conditions have the put the rates for balloon notes and ARMs at the same level. So, there is really less reason to choose the balloon note.

Some of the balloon mortgages sold today, have an automatic rollover option; you need to be sure which type of balloon note you're getting, and if the automatic rollover option is in effect. The automatic rollover does create the opportunity for a guaranteed renewal on the note; however the interest rate will not be geared to benefit the homeowner. Often, the interest rate is higher, and the homeowner has a new mortgage, but at a higher interest rate. It really pays to shop around before you consider this option, especially with the vast product offerings that are available to most homeowners; there are usually better products, with better terms than the balloon note.

Balloon notes are generally more popular with rising interest rates, simply because they offer a better rate. But so do ARMs and they have less volatility than the balloon note. Unless I was absolutely positive that the home I was purchasing would be sold in less than 5 years, I wouldn't even entertain the thought of a balloon note. I would suggest the safer alternative of the Adjustable rate mortgage.

However, balloons are more attractive, and quite popular than there more hum-drum counterparts, and they do offer more home for less money each month. Just remember, they are prone to exploding!

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The Jumbo Loan

Author: Tony Robinson

Jumbo loans are an investment tool they're not for the average borrower. Or so we thought. Today, however, thanks to the boom in real estate prices, and the ever declining value of the dollar, more and more average consumers are applying for these jumbo loans, and using them to finance a home purchase.

The most typical area to see the home prices rising to a level that makes a jumbo loan necessary is in your resort area housing. Many of these homes have escalated tremendously in price over the last couple of years, and the loan needs have risen to all time highs. The jumbo loan has now become a real mortgage product, not just an investing tool.

Before we get too deep into the real estate market, and the use of the jumbo loan, perhaps we'd better define the jumbo loan and the consequences of financing your mortgage in this manner.

The jumbo loan is a loan amount that exceeds $359,651. In fact, this is the defining characteristic of the jumbo loan. The other ""baggage"", if you will, that often accompanies these loans, is the large amount of paper work, higher private mortgage insurance, and the higher interest rate. It might also be interesting to know, that Freddie Mac and Fannie Mae, the two largest mortgage buyers in existence today, usually establish these limits, and dictate to many lending companies exactly what they will buy, and how. It should not need to be mentioned that these loans present a bigger risk than the other, traditional loan needs, and therefore must meet some rigorous requirements.

Now, having explained the definition of the jumbo loan, it deserves to be said that there are alternatives to avoid this type of loan, and still secure the funding you need to purchase a home, without using all your life's savings to do so.

The jumbo loan can be broken down into a first and second mortgage, negating the need for a jumbo loan, and cutting through all the extra paperwork and interest expense. But, that's another discussion. Another option homeowners have for avoiding the jumbo loan trap is to simply put enough down on the home to keep the amount financed below a certain level.

To further explain the role Freddie Mac and Fannie Mae play in the determination of the jumbo loan limits and expense, you need to understand how the mortgage market actually works, and the role these two companies play in that process. Today, if a mortgage company loans you money to purchase a home, you sign a waiver that states that you understand that your loan may be sold to another servicer. They should simply have you sign a form that says you know your loan is going to be sold; who is it? Freddie Mac and Fannie Mae. The mortgage companies find it necessary to resell your mortgage, in order to make another one. So, quite naturally, they must abide by the rules established through the buying companies. Jumbo loans can prove quite risky, so Freddie Mac and Fannie Mae don't even purchase these types of mortgages. For the mortgage companies that do, there are set limits, and they require more information, larger proven income levels and adequate private mortgage insurance to assure that the home won't go into foreclosure and auction.

In some areas of the country, there have been increases in the jumbo loan limits, simply because the housing market and home prices are so high, every home purchased would be a jumbo loan, if the limits weren't extended. Most of these areas are resort homes, vacation homes, and property is scarce.

What is happening today, however, is the growing segment of the population that really needs the jumbo loan financing in order to buy their home; not make a business investment. What does this say about our real estate market, and the value of the property? Our real estate prices are increasing at an astonishing rate, and right along with that, is the increase in products being offered by the mortgage lenders, therefore, it only stands to reason that we would see an increase in the jumbo loan market. The current estimate for the jumbo loan market is generally around 15%; that is still a pretty large hunk of the mortgage market.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage lending: growth eases

Author: nidhi

The British Bankers Association stated on Monday that underlying mortgage lending rose by 4.6 billion pounds in January, down from 5.3 billion pounds rise in December.

The underlying British mortgage lending growth eased in the month of January but was a little below than its average.

According to British Bankers Association (BBA), even though the

mortgage lending rose by 4.6 billion pounds in the month of January, down from 5.3 billion pounds in December but it was slightly below of the six month average of 4.7 billion pounds.

But the Building Societies Association (BSA) had a different story to tell. According to BSA the value of mortgage approvals i.e. loans agreed but yet not made were the highest in the past two years at 4.3 billion pounds in January.

The Council of

Mortgage lenders on Monday stated that the in January the gross mortgage lending stood at 23 billion pounds. The highest lending figure for January on record beating the past figure of 17.4 billion pounds lend in January 2005.

Many analysts feel that the current buoyancy in the property market would continue to accelerate in the following months. This is something the Bank of England would be keeping a close eye on. Many feel the rate cut made by the Bank of England last August to 4.5% has played a major role in reviving Britain's property market.

A property survey has indicated that the asking price for British homes has had their strongest monthly gain in the past two years from January to mid February, breaking the past average of 200,000 pounds.

Expert opinion: Mortgage lending growth has eased out at the start of the year itself and is expected to continue. Plus mortgage lending has been strong in all categories which reflect the confidence the British have about the future of housing market and its prices.

About the author: nidhi

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7 Cheap and Easy Ways to Generate Mortgage Leads

Author: Ameen Kamadia

Need a few more loans but don't have the cash to do some serious marketing? Have no fear. In this issue I am going to reveal 7 fantastic ways to generate leads almost for free. These methods are super cheap (most are free) and work like gangbusters.

How do I know? Because I shared them with my coaching clients and they had excellent results.

These 7 methods are just a few of the over 30 cheap marketing methods I share in one lesson of my 24 lesson Jump Start Your Mortgage Career E-Class. This new class is for any loan officer who is new and struggling or any verteran that just needs a little help with their marketing. It took me over 2 years to create the content for this 12 week, 24 lesson class, and I can honestly say there is nothing available out there that compares to this class.

If you could use more loans, then do yourself a favor and check it out for yourself. http://www.mortgagebrokertraining.com/jumpstart.html

Here we go...

Cheap Mortgage Lead Generation Tip # 1. Join an Association

People join associations for one of three reasons:

Social - they want to build or maintain friendships and influences that may have taken years to build; Promotional - they want to offer their own products or services to others in in a cost effective and positive way;

Educational - they want to see what their competition is up to, and find out about the latest developments within their industry

Grow your network and your database by joining groups of already established people. By socializing with people who have something in common with, it makes it easier to generate business. People like to do business with people they like and trust. Most people like others who have the same interests as they do.

Cheap Mortgage Lead Generation Tip #2: Use Book Stores

One of the questions I keep asking all my coaching clients is ""How can you tell if someone is getting ready to need a mortgage? What do they do? How do they act?""

This is the million dollar question. If you can answer this question, you can easily be rich in the mortgage business. By being able to identify that they want a mortgage before they start looking for one, you can get a jump on all the other loan companies. This is one area of our business that still annoys me. Most other businesses, have a way to identify when someone will need their service and can market to them accordingly. Like when someone buys a new home, they most likely will be buying furniture, blinds, home accessories, etc. So if we were selling any of these items, all we need is a list of new homeowners to market to. And that list is easily available. But how the heck do we figure out who is ""thinking"" of getting a mortgage?

The answer one of my coaching clients came up with was that they might go to the bookstore or library to read books on home buying, or mortgages, or real estate in general. And that's true. Every bookstore has a real estate section. And most of the books are for consumers who are buying and selling real estate.

So my next question is, ""Now that we have identified what they do, how do we get our message in front of them?""

And my client came up with this simple method: Go to the bookstores and libraries and insert a business card into each book.

After doing it for a couple months, he came up with some simple observations:

First, he learned that the best place to put the card was somewhere in the front. Try for the first chapter because not everyone reads the whole book.

Second, pick the books with the best covers and graphics inside- they sell the best.

Third, not all books sell and some are sent back to the publishers.

Fourth, having a USP on the card helps boost response.

Fifth, it takes about 10 minutes per bookstore.

Sixth, he averages 3-4 calls a month, and one loan per month.

Seventh, he now has his assistant do it. And she goes once a week.

Eight, the people who call are in search of more information, so offering them unbiased advice and more resources really turns them on. If you have the time, and are brave enough to be seen doing it, try it and see what results you get. I wanted to test it in my market. So I went to three bookstores and put in about 120 cards. I got 2 calls, and one of them is a very serious prospect. If I do it more often, I have no doubt that it would work for me as well.

Cheap Mortgage Lead Generation Tp #3: Orphan Files

When a loan officer leaves a company the clients he/she brought to the company are called orphans. These clients now belong to the company. Ask your manager to see if you can contact any orphan files in your office to see if they need any mortgage or real estate help. Be nice enough, and they will allow you to add them to your database.

Cheap Mortgage Lead Generation Tip #4: Tradeshows

Another coaching client of mine goes to tradeshows. But not the ones related to our business. He goes to unrelated trade shows: electronic shows, design shows, car shows, and his favorite: women's trade shows.

Most of the time, he is the only mortgage company there. And he is averaging 2-3 loan applications per show. The trick is to tie in your business with the show. If it is a car show, you can advertise that you can help anyone buy any car in the place.

If you can pre-approve someone at a car show for a cash out refinance, they can go and buy that hot car they have been salivating on for the last 2 hours. Instant gratification.

Cheap Mortgage Lead Generation Tip #5: Join A Local Real Estate Investment Group.

Every major city has one. And they are full of people buying and selling houses. They need money to buy houses, and they need money to help others buy their houses.

Cheap Mortgage Lead Generation Tip #6: Realtor Open Houses

Stop by at realtor open houses on the weekends. Offer to leave some financing materials.

When you get to know a realtor, you can offer to do open houses for her where you sit in the house instead of her. It is not a fun way to spend an afternoon, but you might get some good leads out of it.

If you decide to go this route, make sure the house is in a well trafficed area and easy to get to. And make sure the agent does some advertising and lends you signs and balloons. You do not want to sit in a house, where no one shows up because it is hard to find or no one knew about the open house.

Another tip is to meet the neighbors of the home you are holding open. See if they know anyone wanting to move or buy. Chances are someone will know of a family wanting to move into the neighborhood.

Cheap Mortgage Lead Generation Tip #7: Realtor MLS

Want a source of thousands of people who will be getting a mortgage within the next couple months?

It's sellers. And the Multiple Listing Service used by Realtors is full of them. Do a search of homes for sale, get the owners' name from the tax records and you have yourself a good prospect list.

Mail them something about you or an offer for free information. Call them if you can get their phone number and they are not on the Do Not Call list, or just drop by their house if you have the guts.

This is exactly what one of my coaching clients does. He calls Realtors who have listings and asks them if he can market his services to the home sellers. Many Realtors say yes. When they do, he contacts the sellers, and tells them that their realtor said it was ok to call on them.

He tells me the majority of home sellers he talks to are willing to talk to him and he gets several loans a month using this trick.

If you liked the above lead generation tips and would like more, check out my Jump Start Your Mortgage Career E-Class today. As I said these are just a few of the dozens of cheap lead generation techniques I share in one lesson of the course. The other lessons cover every aspect of mortgage marketing that you need to suceed in this business.

About the author: Ameen Kamadia, ""The Millionaire Loan Officer"" is a mortgage consultant, coach and trainer. He still does loans in his free time. To learn more visit http://www.mortgagebrokertraining.com

Mortgage Products: The Super Jumbo Loan

Author: Tony Robinson

Super Jumbo loans are an investment tool they're not for the average borrower. Or so we thought. Today, however, thanks to the boom in real estate prices, and the ever declining value of the dollar, more and more average consumers are applying for these jumbo loans, and using them to finance a home purchase.

The most typical area to see the home prices rising to a level that makes a super jumbo loan necessary is in your resort area housing. Many of these homes have escalated tremendously in price over the last couple of years, and the loan needs have risen to all time highs. The super jumbo loan has now become a real mortgage product, not just an investing tool.

Before we get too deep into the real estate market, and the use of the super jumbo loan, perhaps we'd better define this type of loan and the consequences of financing your mortgage in this manner.

The super jumbo loan is a loan amount that exceeds $650,000 but not more than $10,000,000.00. In fact, this is the defining characteristic of the super jumbo loan. The other ""baggage"", if you will, that often accompanies these loans, is the large amount of paper work, higher private mortgage insurance, and the higher interest rate. It might also be interesting to know, that Freddie Mac and Fannie Mae, the two largest mortgage buyers in existence today, usually establish these limits, and dictate to many lending companies exactly what they will buy, and how. It should not need to be mentioned that these loans present a bigger risk than the other, traditional loan needs, and therefore must meet some rigorous requirements.

Now, having explained the definition of the super jumbo loan, it deserves to be said that there are alternatives to avoid this type of loan, and still secure the funding you need to purchase a home, without using all your life's savings to do so.

The mortgage loan can be broken down into first and second notes, negating the need for a super jumbo loan, and cutting through all the extra paperwork and interest expense. But, that's another discussion. Another option homeowners have for avoiding the super jumbo loan trap is to simply put enough down on the home to keep the amount financed below a certain level.

To further explain the role Freddie Mac and Fannie Mae play in the determination of the super jumbo loan limits and expense, you need to understand how the mortgage market actually works, and the role these two companies play in that process. Today, if a mortgage company loans you money to purchase a home, you sign a waiver that states that you understand that your loan may be sold to another servicer. They should simply have you sign a form that says you know your loan is going to be sold; who is it? Freddie Mac and Fannie Mae. The mortgage companies find it necessary to resell your mortgage, in order to make another mortgage loan possible. So, quite naturally, they must abide by the rules established by the mortgage purchasing companies. Super jumbo loans can prove quite risky, so Freddie Mac and Fannie Mae don't even purchase these types of mortgages. For the mortgage companies that do, there are set limits, and they require more information, larger proven income levels and adequate private mortgage insurance to assure that the home won't go into foreclosure and auction. In some areas of the country, there have been increases in the super jumbo loan limits, simply because the housing market and home prices are so high, every home purchased would be a jumbo or super jumbo loan, if the limits weren't extended. Most of these areas are resort homes, vacation homes, and property is scarce.

What is happening today, however, is the growing segment of the population that really needs the super jumbo loan financing in order to buy their home; not make a business investment. What does this say about our real estate market, and the value of the property? Our real estate prices are increasing at an astonishing rate, and right along with that, is the increase in products being offered by the mortgage lenders, therefore, it only stands to reason that we would see an increase in the jumbo and super jumbo loan market. The current estimate for the jumbo and super jumbo loan market is generally around 15%; that is still a pretty large hunk of the mortgage market.

About the author: NoneTony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Products: The Interest Only Loan

Author: Tony Robinson

Many of today's consumers are financing their homes with interest only loans. Not very many of those consumers are aware that some of the grandparents, or great-grandparents also financed their homes with an interest only loan. I myself wasn't aware that this type of loan existed prior to the mortgage market of today. But, we weren't the first to use the interest only concept. During the Roaring 20s, many of middle-America's citizens chose to finance their homes with interest only loans.

Why did they not remain popular, and does this tell us anything about the market of today? Well, let's take a moment to examine the interest only loan of the 20s compared to the loan of today, and maybe we can become better educated shoppers.

The interest only loan of the 20s was a pure product. This means that the mortgages were interest only for the life of the loan. At the end of the mortgage period, nothing had been paid against the principal. Only the interest payments against the principal borrowed had been paid. This worked really well until the crash of the stock market and the Depression. At this point, many of the families that had lived in homes paying only the interest due were forced from their homes when there was no money and no jobs. Many lending institutions were left with foreclosed mortgages, and no cash. The traditional lending institutions at this point, simply shelved the interest only loan, in favor of more equitable lending; in other words, they preferred to loan money for a mortgage that would build equity. This gave the homeowner something comparable to savings, and the banker a lower outstanding mortgage balance.

That is a lesson we should carry forth when lending today, and using the interest only option. Most of the products offered today do carry a limit for the term of the interest only element. Generally, if the loan is a 30 year loan, no more than half can be used towards the interest only option. At least someone has exercised some level of judgment in providing for a cap, or limit to the interest only term.

In today's society, everything we see encourages instant gratification, and home mortgages are no different. Instead of sending a message that says, if you want more house, you need more money, we send the message that it's ok to borrow beyond your means. Now, in all fairness, there are some mortgage shoppers that fit the description of the candidate for the interest only loan. Investors, and candidates who do not intend to keep a home for longer than 5 years, do benefit from the interest only loan option. But for the typical homeowner, the interest only mortgage only prolongs the equity building process, and may often put the borrower in a situation where he or she cannot actually afford the payment when the principal and interest period begin.

Thanks to the booming real estate market, the interest only loan option, and the expansion of the mortgage product market, the increase in purchasing power has enabled many prospective homeowners to actually make a dream a reality. But at some point, the market will cease to boom, and the mortgage market will cease to expand. Will the consumer that purchased the interest only loan be able to afford the consequences, should the home suddenly not be worth the original loan amount? Let's hope for the sake of the unwary homeowner, this is a situation we do not soon encounter. And, for the most part, I don't believe we'll see this any time soon. Thanks to the natural disasters along the gulf coast, and the continued demand for real estate and building materials, the housing prices we're currently experiencing, along with the growth we've seen for the past couple of years, should continue at the same rate.

There are other, more stable loan products available, but these products don't provide the kind of return for the mortgage lender that the interest only loans do. They also don't pose the risk the interest only loans pose. The interest rates, however, are very competitive on these loans, and I don't' look for the general public to decide in favor of safety over savings. After all, nothing ventured, nothing gained.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Mortgage Refinance Tips And Advice - Part1

Author: Mark Goldstein

For the average person who does not work in the mortgage industry, the mortgage jungle is very overwhelming. Mortgages are complicated! This article is a small collections of tips and advice of what an average person should know when looking for a mortgage. We kept it simply, but informative.

Reverse Mortgage Funding

As we grow older, living expenses seem to increase drastically, it is for this reason a great number of elders choose to seek a reverse mortgage to provide help with these expenses. This option typically works well for those who have fully paid for their home, and have no mortgage upon it. Simply speaking, when you take advantage of a reverse mortgage you will receive a monthly stipend from the equity that your home carries. This is especially useful to the elderly, sometimes securing a reverse mortgage aides them with living expenses, that alone could help in allowing them to remain within their own home. It is wise to request to a mortgage broker that the cost of closing should be paid out of the money received from the reverse mortgage loan. Essentially meaning, no expenses directly out of pocket.

Mortgage Options - Interest Only

Interest only mortgages are specifically designed to substantially decrease your payment amount over the first years of the mortgage term. The way this program works is that for these first few years you are only making payments towards the interest of the mortgage. This keeps the mortgage payments lower than other mortgage options because you are not required to pay on the principal of the loan. Eventually the time will come that you will be required to pay both the interest and the principal. It is wise to fully investigate this mortgage option prior to choosing it. Very carefully make some calculations and determine rather or not you will be able to afford the payments once both interest and principal are required.

The Right Mortgage Broker for you.

With the vast presence of the internet, obtaining the proper mortgage broker has never been easier. Additionally the internet allows you to locate mortgage brokers from all over your area. You are not limited to using a local broker or company in any way. The mortgage brokers you can find on the internet are in great competition with each other. What does this mean for you? It is simple because they are so competitive, you will win with excellent program and competitive rates. To choose the proper mortgage broker for you, you first must be comfortable in choosing them. Choose a mortgage broker that gives you confidence in their guidance. Take your time in finding the perfect mortgage broker for you; make sure their goals and your goals match, thoroughly research all your options before making a choice.

Obtaining a Mortgage Loan the Fast way.

Obtaining a mortgage loan through the internet is easier than ever before. The benefit of an online mortgage broker is that generally, they have a wider spectrum of lenders and various programs that a typical mortgage broker might have. More often than not, they have the ability to process request more quickly, as well. Online mortgage brokers can even aid you if there is urgency because of a fast approaching closing date or you are in need of speedy refinancing. All of this is thanks to the technology of automated credit checks, verification of income and online loan applications. You can find mortgage brokers through various measures such as using a popular search engine like Google, simply type in mortgage broker and you will be amazed with the results. A better option is to search for reviews about the mortgage broker or seek the advice and referrals from your friends and family. The best mortgage broker will possess the seal of the Better Business Bureau.

Adjustable Rate Mortgage and What you should know about it.

If you opt for an adjustable rate mortgage ensure that you are fully aware of these facts , this will help you be ready when the time comes for your fixed rate mortgage ceases.

1. You should know when the first rate adjustment will occur and how much the adjustment will be. Knowing the specific date will prepare you for the event.

2. You should know that the adjustable mortgage rate fluctuates with the changes of interest rates. Find out what index your rate is associated with, so you can investigate the interest rates on your own.

3. Know all of your options when it comes to refinancing. If a adjustable rate mortgage proves to be unbeneficial for you, you have the option of refinancing with a fixed rate mortgage. To get a good interest rate on a fixed mortgage you should watch the rates closely and if you choose to refinance, do so when the rates are comfortable to you.

Obtaining Flexible Interest Only Mortgages

For those that practice self-discipline, a flexible interest only may be practical. This option provides a payment arrangement that is flexible in regards to the payments that you make. This does not mean they are flexible on the timely manner in which you pay them, this simply means when your payment date arrives you are required to make a minimum payment of at least an amount towards the interest on the loan. However, with this flexible option you can opt to pay an additional amount towards the principle of your mortgage. Generally, your flexible interest only coupon book will include an area that determines the amount needed to be applied towards the principle if you should choose to do so. This is where that self-discipline comes in handy, it is wise to apply as much as possible towards the principle, bringing the amount down and coming that much closer to paying off your mortgage.

About the author: www.Lendgo.com is a website dedicated to consumer personal finance, mortgage refinance loan , credit card application ,free credit report and legal credit repair.

Mortgage Loan Officer Training: 10 Helpful Tips That Can Instantly Boost Your Income By $5,000 Per Month

Author: Hartley Pinn

Mortgage Loan Officer Training: 10 Helpful Tips That Can Instantly Boost Your Income By $5,000 Per Month

Well here they are... 10 mortgage loan officer training tips to improve efficiency and increase revenue. These tips have made me hundreds of thousands of dollars over the years and I'm confident they will do the same for you:

Mortgage Loan Officer Training Tip #1: Only use a few lenders Depending on your niche, all you really need is a few good lenders. With a portfolio of about five lenders, you can handle all credit grades and even special programs like stated, no doc and 100% financing.

Mortgage Loan Officer Training Tip #2: Read your lender's guidelines to build an intimate knowledge of their products and procedures - THIS IS A MUST!!! (And easy to do if you only use a few lenders.) Don't rely on lender reps to tell you about their guidelines. They are human and can make mistakes just like the rest of us.

Mortgage Loan Officer Training Tip #3: Send gifts to your appraiser, title agents, and underwriters to gain favor. This is a great way to build relationships with the people you rely on to do business. Look for a reason to send these people a thank you card along with a gift. This is another good reason to use only a few good lenders.

Mortgage Loan Officer Training Tip #4: Define your market What loans will you do and what loans will you not touch? You can and will cause yourself undue heartache if you agree to take a loan that is outside of your market. For instance, I refused to even look at a loan unless the borrowers had a credit score of 580 or higher. If an applicant has a credit score less than 580, I referred them to my loan officer partner and split the commissions.

Mortgage Loan Officer Training Tip #5: Specialize Find a niche. Specialists always make more than generalists. Everyone does purchase loans on single family houses. What if you became the expert in your area on financing investment properties, construction loans, or VA loans? With some work and dedication you could become the mortgage lending ""guru"" for your niche and monopolize your marketplace.

Mortgage Loan Officer Training Tip #6: Location, location, location If you can: Keep a frig in your office, place a copier close to your assistant's desk, and have your computer printer right next to your desk. This will save loads of time walking around the office. It will also keep your assistants focused. Sometimes it's hard to walk through an office without falling into several casual conversations that can lower your team's production.

Mortgage Loan Officer Training Tip #7: Get all documentation up front I believe in getting every piece of documentation I could possibly need right up front. That way if a problem arises you have a greater chance of being able to fix the problem on your own without bothering the borrowers.

Mortgage Loan Officer Training Tip #8: Only the necessities Just because you collect extra documentation, doesn't mean you have to use it. Don't submit extra paperwork to your processor or to underwriting. It could open a can of worms you don't want opened. Only turn in exactly what's need to fund the loan - nothing more or less.

Mortgage Loan Officer Training Tip #9: Sandwich technique At some point you'll need to contact a borrower during the loan process and ask for more information. When this situation arises, try using the sandwich technique:

Re-establish rapport Make your request: ""Oh by the way I need___. When can you fax it to me?"" Continue rapport building dialog. Say goodbye and politely get off the phone

If you have a difficult borrower, this works like a charm to diminish their anxiety level.

Mortgage Loan Officer Training Tip #10: Testimonials Get testimonials from everyone. They are great marketing tools for your business. Use them to target your client's CPA, HR manager at work, real estate agent and financial planner to establish a referral relationship.

There you have it. Incorporate these ideas into your mortgage business and see how they impact your bottom line.

By the way, if you would like to get another 13 mortgage loan officer training tips that can instantly boost your income by $5,000 per month, visit:

www.Mortgage-Leads-Generator.com/a/13tips.htm

Please feel free to reprint this article as long as the resource box is left intact and all links are hyperlinked.

Hartley Pinn has recently created the ""Mortgage Leads Generator"" Training Course to teach mortgage loan officers 10 proven strategies for generating more than 71 mortgage leads per day.

About the author: As a top producing mortgage loan officer, Hartley Pinn has been actively testing, researching, and evaluating lead generation strategies since 1995.

Mr. Pinn has written several articles on the subject and has recently created the ""Mortgage Leads Generator"" Training Course to teach new and experienced mortgage loan officers how to generate a five to six figure monthly income while cutting their work schedule down to only 10 hours a week.

What is the right kind of mortgage for you ?

Author: Vincent Wilmot

Copyright 2006 Vincent Wilmot

If you need or want a mortgage, then you can easily get a mortgage that is not the best one for you. Mortgages are often missold by sellers claiming to be experts. One day they all push Endowment mortgages, then Repayment mortgages or Low Start mortgages or Overpayment mortgages or Fixed Rate mortgages or Offset mortgages - and each type will also have different interest rates available.

For any one kind of mortgage, lower interest rates are best of course. But different kinds of mortgage may best suit different people, though they may not have the same interest rates. For some a mortgage is the only way they can afford to buy a property, but for some a mortgage is profitable cheap money costing maybe 5% net to free-up other money for investing at a higher return maybe 10% net.

Good mortgage calculators can help you choose the best mortgage for you, but many or the mortgage calculators available are little help. But first let us look at what kind of mortgage may best suit you ;

Savings and income small. A normal Repayment mortgage should be best if you can get one for the property that you want and you can afford the payments. (Some sellers may help on a deposit or furnishing, or offer Shared Ownership or Homeown schemes.) Otherwise, if your income is likely to be rising then a Low Start mortgage might allow you to buy a better property or to have lower payments. As an alternative to a low start mortgage, a young new graduate might reasonably consider a permanently low payment endowment mortgage linked to a pension, though at the end of it gambling whether some net lump sum may be collected or may be owed.

Savings small and income large. A normal Repayment mortgage should be best if you can get one for the property that you want. (Some sellers may help on a deposit or furnishing.) An Overpayment mortgage will be better if you prefer to pay off your mortgage early, but an Offset mortgage linked to your current account could help with that more cheaply.

Savings large and income small. A smaller Repayment mortgage may be best, but if you can invest your money at a better net return than the mortgage interest rate that you can get then you should get the biggest Repayment mortgage that your income can reasonably afford.

Savings and income large. If you can buy the property you want without a mortgage, then only get a mortgage if you can invest your money at a better net return than the mortgage interest rate that you can get - and in that case get the biggest Repayment mortgage you can afford.

Initial mortgage payments must be affordable for you, leaving enough of you income for normal bills and expenses. (If your income is small then a mortgage taking 30% of your income may be difficult for you, but if your income is larger then 50% of your income may not be difficult for you.)

Mortgage payments in later years. The actual money cost of a normal 'variable' mortgage is fixed for the life of a mortgage IF interest rates do not change, so that the real cost tends to fall in later years. BUT if interest rates rise then the money cost of your mortgage could rise a lot for a year or two and make it difficult to keep up payments. Many partly 'insure' against this by taking a slightly dearer mortgage with the first few years held at a fixed interest rate. And if sickness or unemployment might make paying a mortgage difficult, then this can be insured against.

If you want to buy a property as an investment to rent it out, then you may need a commercial Buy To Let mortgage needing a deposit of 15% or more unless you can find a seller offering a deal that helps with that. But if you are already a landlord owning multiple properties, then you may be better suited with a specialist lending arrangement rather than individual mortgages.

About the author: Vincent Wilmot currently lives in Grimsby UK and has several interesting websites including http://www.buy-to-let.me.uk

Poor Credit? Refinance Your Mortgage and Still Save Money

Author: Gregrey Pashby

Believe it or not, if you are suffering from bad credit, you can potentially lower your monthly bills by refinancing your existing home mortgage. Homeowners applying for a new home loan do so in order to replace their existing loan, creating a new mortgage, which borrows money against the home's equity. If you attain a cash-out refinancing, the lender will grant you a lump sum when the closing period arrives.

New mortgages are useful for acquiring funds so that the borrower can make home improvements, establish a savings account, and plan for retirement. Also, borrowers with poor credit can increase their credit rating if they eliminate their debts.

For most homeowners, there is not a better time than now to refinance their current mortgage. When mortgage rates are low, refinancing for a fixed rate or interest only rate may be the most beneficial. On top of this, refinancing may eliminate private mortgage insurance charges as well. It is important to keep in mind that you must do proper research - that is, add up all costs, analyze the closing conditions and policies, make sure your duration in the home is long enough, etc. - in order to decide which option is the right one for you and your credit situation.

Feel free to reprint this document as long as all the URL links are intact.

About the author: Gregrey Pashby is a writer and contributor for Bad Credit Lender who specialize in bad credit loans and hard money loan information. Bad Credit Lender provides

poor credit mortgage refinance loans , bad credit home loans, and hard money loans.

Retirement and the Mortgage Loan

Author: Tony Robinson

There is an untapped reserve of cash in our homes; it's the equity we've built into our homes over the life of the mortgage, or simply in owning our own home. If you're looking for a great financial tool, learning to use the equity in your home to its fullest extent is something we Americans aren't very good at accomplishing. Fear of a loss is the number one reason we don't utilize our equity asset. But, if you will take the time to investigate many of the investment options available to us, the risk is minimal, and the return is great. Especially now during this period of extremely low interest rates, your home's cash equity could be earning you a return of 18-20% in certain investment funds. Even if you borrow money in order to cash out the equity, you're making money. The interest you pay is substantially less than the interest you're earning.

Why are we so reluctant to take out a second line of credit, or increase our mortgage balance through refinancing? Many of today's homeowners reaching retirement age do not fully understand all their investment options, nor do they understand how investments like growth funds work. They are very reluctant to try anything that is beyond the sure bet of a certificate of deposit. In so doing, they are missing a tremendous opportunity to earn a greater return on their money, and let their money work for them. Take a look at your 401k, where are your investments? Are they earning 5-8-10%? Unless you're ready to retire, your 401k should earn at least 6-8% on your investment. Your home is earning you nothing on your investment, at least, not in the sense that the money must stay in the home in order for the home to increase in value. Quite honestly, your home will appreciate in value if you do nothing but maintenance work and live in it. Your equity you have in your home, can earn you up to a 15% return, while you still are fairly safe with your principal investment.

Speaking of 401k investments, are you investing the maximum each year in your 401k? If you're self-employed, are you making use of the SEP retirement options that reduce your tax liability? If you're not, you should really consider the equity in your home as an investment option for adding to your 401k, or establishing an SEP that will allow you to invest your money in profitable and fairly safe global and growth funds. There are still many excellent opportunities in the stock market. There are segments of the market that are experiencing phenomenal and stable growth. The overseas markets, the domestic real estate markets, and the energy markets are growing, and are expected to see sustained growth. Put your money to work for you, especially if you are several years away from retirement.

Another retirement option that involves a mortgage loan is the reverse mortgage. This however, is not a way to build retirement savings; it is a way to simply access the equity you've built in your home, so that your monthly income levels are adequate to sustain your most vital needs. Food, clothing, heat, and medicines are a must as you reach or near retirement age. Many times, the elderly are not as prepared financially as they anticipated that they would be. How can they supplement their monthly incomes? The reverse mortgage is the answer to many older citizens' financial needs. The reverse mortgage allows a person to withdraw a monthly sum against the equity they've built into their home. The interest payments are deferred until death, and the homeowner doesn't have to worry about making a monthly payment, or borrowing money. They are able to use the money they've already put into their home, just when they need it most.

If you are past the age of 40, and you haven't taken the time to consult with a financial analyst, I would recommend that you seek out one that you can trust and that you are comfortable in discussing your financial affairs with, and begin to look at your retirement options, your retirement needs, and your ability to meet those needs, based on your current income and savings. What you may find is that you aren't near as prepared for retirement as you thought. The monthly income needed will probably greatly exceed your anticipations. But, if you own your home, you may have just prepared more than you think!

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.

Real Estate and Mortgage Loans: The Circle of Growth

Author: Tony Robinson

In case you haven't noticed the mortgage market and the real estate market have been blazing a trail into the record books. Never before has there been such explosive, sustained growth of these two markets. The key factor here is that one seems to feed off the other. Is this a good thing, or are the two markets headed for a collapse?

You have analysts that will argue for either side. But, you need to have a better understanding of how this process works, and what elements have come together to allow this kind of growth, before you can accept or disprove either argument. What has happened to spur this kind of growth? Well, there are several key factors that managed to come together at precisely the right time, some of them attributable to natural disaster that has generated a booming market. The first contributor was the falling interest rate that has leveled out around 6 - 7%; the second great contributor has been the increase in mortgage loan options. There are mortgage products out there to fit every type of buyer. The third contributor, (and this one is purely from nature) was the horrific hurricane seasons of the past couple of years, including the season we had this year.

How have all these elements come together to generate growth? Here's exactly how: lower interest rates meant cheaper monthly payments, refinancing options were open, and people could afford to buy bigger homes for less. Add to that mix a more varied loan market, and you have an increase in buying, selling, and building. If you also throw in the fact that hurricanes destroyed massive quantities of homes along the coast, and most will rebuild, you have a burgeoning real estate and housing growth market.

We have also managed to create an environment very conducive to investment, construction, and resort development. Now, if you factor in a booming market for investors, you have a prime situation for increases in real estate value, increases in construction, and increases in mortgage loans. How does the average citizen ready to buy or build a home interpret all this information? Well, it creates a wonderful situation for the homeowner looking to sell a home, simply because the value of the home should show a tremendous increase over the purchase value, especially if you've owned the home for more than 10 years. However, if you're buying or building, you're not going to like the situation. Why? Because home prices are up, thanks to the rising real estate prices, and so are is the price of building materials, needed to build a new home. We can attribute much of this to high gas prices and hurricanes. The good news, in all this, is the low interest rates. You can still borrow at an extremely affordable interest rate.

For the consumer shopping the market, you need to really educate yourself about the rising costs of real estate, the local values in your community, and what mortgage products would most benefit you, when you consider your individual objectives. If you're like most, you aren't buying your home for an investment, and you aren't buying with the intent to sell in a few short years. In the market of today, it would be a wise choice to meet with a financial advisor; someone that has a background in finance, and can help you to clearly define your objects, and choose a mortgage that will reflect those objectives.

Many of the individuals, who are the doomsayers, seem to think that the market can't sustain this type of growth. That is has occurred too quickly, and like the bubble of the stock market, will burst, leaving many homeowners and mortgage lenders ""holding the bag"" so to speak. But, you also have many of the intellectuals that say the real estate market was due a burst of growth; that it is normal, healthy, and we should have no trouble sustaining this type of growth. Whatever the end result, right now, the real estate market and the mortgage market are hot items; if you own real estate, you've hit the jackpot. If you're looking to buy, get ready to pay.

About the author: Tony Robinson is a Real Estate Investor, Webmaster and International Author. Visit http://www.ezy-mortgage.com/ for his tips on mortgages.