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.