logging in or signing up best mortgage rates michellepark Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 87 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: December 03, 2010 This Presentation is Public Favorites: 0 Presentation Description To find the best mortgage rates simply build a relationship with your mortgage lender. Comments Posting comment... By: Rvd10 (17 month(s) ago) A Very Nice Presentation http://www.themadnews.com/wigan-vs-newcastle-live-stream-highlights-goals-videos-2-january-2011-12033 Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript The mortgage rate basics : The mortgage rate basics http://bestonlinemortgages.net/images/mortgage/mortgage_250x251.jpg The mortgage lender that funds your loan is called the originator. Slide 3: A loan originator may be a bank, credit union, or other type of financial institution. http://www.gordwong.com/images/Best%20Mortgage.jpg Slide 4: On the date of funding, the money flows out of the originator's hands and into yours. http://www.moneyextra.com/media/00/00/00/36.jpg Slide 5: http://davemarcusloans.com/mortgage-lender/wp-content/uploads/2010/11/Finding-The-Best-Mortgage-Rates.jpg You then turn that money over to the seller of the home. Slide 6: http://blog.foreclosure.com/wp-content/uploads/2008/12/rates.jpg Once the loan is funded, the originator has the option of keeping that loan in its portfolio or selling it on the secondary market. Slide 7: If the originator keeps the loan, it makes money by way of the interest you pay each month. http://www.automatedcashflow.com/common/imagelib/index.htm/4905_600_280_crop_9f3ba.jpg If the originator keeps the loan, it makes money by way of the interest you pay each month. Slide 8: http://www.lasvegasforclosures.org/common/imagelib/index.htm/90_420_280_crop_9ac1b.jpg If the loan is sold, the originator replenishes its funds and can make more loans to other homebuyers. Slide 9: Basically, the secondary market investors keep funds circulating so that loan originators don't run out of money for new mortgages. http://cf.ltkcdn.net/mortgage/images/std/29232-285x214-BestMortgageRates.jpg Slide 10: http://www.monitorbankrates.com/wp-content/uploads/2010/06/mortgage-rates-near-historic-lows-30-year-mortgage-rates-at-472-15-year-mortgage-rates-at-417.jpg Selecting the Best Mortgage Rate Finding the best mortgage rate may not be as easy as simply identifying the lowest interest rate. Slide 11: The criteria a mortgage shopper should apply must begin with the question of how long they plan to hold onto the mortgage and retain ownership of the property. http://www.nmimortgage.net/common/imagelib/index.htm/1303_550_250_crop_545cd.jpg There is no reason to consider the option of paying points and fees to buy down the interest rate when a borrower does not plan to own the property long enough. Slide 12: The second criteria that should be used in determining whether to buy the interest rate down by paying point and fees, is whether a borrower is refinancing (refinance mortgage rates) or purchasing the property in question. http://mortgagepreapprovalguide.info/images/mortgage/mortgage_385x261.jpg Deducting points and fees typically has a more favorable tax treatment in a purchase transaction rather than in refinancing. Slide 13: Another criteria frequently used to determine the best mortgage rate is APR or the Annual Percentage Rate. http://www.sflainvestments.com/images/mortgage-loan-424.jpg The purpose of the APR is to give the mortgage consumer a basis of comparing several loans by examining the total cost of the loan, including some specific costs, over a period of time by reflecting some of those costs in the interest rate (30 year mortgage rates). Slide 14: The problem with the APR is that it is not required to be calculated the same way across the board, for instance one area were lenders can differ dramatically when it comes to quoting APR, is the number of days of pro-rated interest they use when arriving at their APR calculation. http://www.mortgageslondon.info/wp-content/uploads/2010/05/mortgage-rates-london.jpg Slide 15: Pro-rated interest is the number of days remaining within a month that you will pay interest after your new loan closes, for example if your loan should close on the 15th of the month then you would have 15 days (or 16 if the month has 31 days) interest remaining to pay on the new loan. http://www.northeastmortgage.com/__media__/images/2387_Directi-green-Finance1.jpg Slide 16: The problem with lenders including the pro-rated interest in the APR is that there is no uniform requirement for how it is quoted. http://thumbshots.blogcatalog.com/4325765_large.jpg Slide 17: Some lenders use 15 days in their calculation and some may use 30 days, a few may even use zero days of pro-rated interest in their APR calculation so it will appear (somewhat deceptively) to be the lowest among their competitors. http://1.bp.blogspot.com/_giGZ_kNOLYY/TMnbeVmk09I/AAAAAAAAAr4/O9V-HyPAWuY/s1600/mortgage.jpg Slide 18: With so many sub-prime borrowers having been burned recently by adjustable rate mortgages(ARM), ARMs are being avoided like the plague. It’s unfortunate that all adjustable loans are being written off by many consumers and are now being presented in the same negative light. In fact, given the right circumstances, an adjustable loan can be a wonderful tool for managing one’s personal cash flow, if a borrower is both responsible and educated in maintaining their own finances. What type of loan would be best mortgage for you? Slide 19: http://www.mortgage-rates-calgary.com/public/sites/614/best-mortgage_rate.jpg ARMs can also be useful for borrowers who have a short term ownership horizon, perhaps of less than 3-5 years. Of course given the soft real estate market currently experienced throughout the country, buying a home with such a short term time horizon would likely be a foolish strategy. Slide 20: Fixed rate mortgages (30 year mortgage rates) are always a safe bet. Borrowers opting for the 30 year can always make additional payments to shorten the term of the loan (assuming they take a recommended no prepayment penalty loan), this way they remain in control of managing their mortgage payment and cash flow. http://www.mirren-properties.com/files/QuickSiteImages/QS_banner_right.jpg Slide 21: http://www.mortgagemedics.ca/images/mortgage-toronto-best-rates.jpg A 15 year mortgage can be a terrific, less costly option for the more mature borrower who does not have as many competing demands for their cash (i.e. saving for retirement, kid’s college education, etc.). Slide 23: So is there a better way to find the best mortgage rates? Ultimately it comes down to building a relationship with your mortgage lender. Whether you are buying your first home or refinancing the home you have the mortgage lenders, who will help you to understand mortgages written in simple language so you know exactly what you are getting. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
best mortgage rates michellepark Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 87 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: December 03, 2010 This Presentation is Public Favorites: 0 Presentation Description To find the best mortgage rates simply build a relationship with your mortgage lender. Comments Posting comment... By: Rvd10 (17 month(s) ago) A Very Nice Presentation http://www.themadnews.com/wigan-vs-newcastle-live-stream-highlights-goals-videos-2-january-2011-12033 Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript The mortgage rate basics : The mortgage rate basics http://bestonlinemortgages.net/images/mortgage/mortgage_250x251.jpg The mortgage lender that funds your loan is called the originator. Slide 3: A loan originator may be a bank, credit union, or other type of financial institution. http://www.gordwong.com/images/Best%20Mortgage.jpg Slide 4: On the date of funding, the money flows out of the originator's hands and into yours. http://www.moneyextra.com/media/00/00/00/36.jpg Slide 5: http://davemarcusloans.com/mortgage-lender/wp-content/uploads/2010/11/Finding-The-Best-Mortgage-Rates.jpg You then turn that money over to the seller of the home. Slide 6: http://blog.foreclosure.com/wp-content/uploads/2008/12/rates.jpg Once the loan is funded, the originator has the option of keeping that loan in its portfolio or selling it on the secondary market. Slide 7: If the originator keeps the loan, it makes money by way of the interest you pay each month. http://www.automatedcashflow.com/common/imagelib/index.htm/4905_600_280_crop_9f3ba.jpg If the originator keeps the loan, it makes money by way of the interest you pay each month. Slide 8: http://www.lasvegasforclosures.org/common/imagelib/index.htm/90_420_280_crop_9ac1b.jpg If the loan is sold, the originator replenishes its funds and can make more loans to other homebuyers. Slide 9: Basically, the secondary market investors keep funds circulating so that loan originators don't run out of money for new mortgages. http://cf.ltkcdn.net/mortgage/images/std/29232-285x214-BestMortgageRates.jpg Slide 10: http://www.monitorbankrates.com/wp-content/uploads/2010/06/mortgage-rates-near-historic-lows-30-year-mortgage-rates-at-472-15-year-mortgage-rates-at-417.jpg Selecting the Best Mortgage Rate Finding the best mortgage rate may not be as easy as simply identifying the lowest interest rate. Slide 11: The criteria a mortgage shopper should apply must begin with the question of how long they plan to hold onto the mortgage and retain ownership of the property. http://www.nmimortgage.net/common/imagelib/index.htm/1303_550_250_crop_545cd.jpg There is no reason to consider the option of paying points and fees to buy down the interest rate when a borrower does not plan to own the property long enough. Slide 12: The second criteria that should be used in determining whether to buy the interest rate down by paying point and fees, is whether a borrower is refinancing (refinance mortgage rates) or purchasing the property in question. http://mortgagepreapprovalguide.info/images/mortgage/mortgage_385x261.jpg Deducting points and fees typically has a more favorable tax treatment in a purchase transaction rather than in refinancing. Slide 13: Another criteria frequently used to determine the best mortgage rate is APR or the Annual Percentage Rate. http://www.sflainvestments.com/images/mortgage-loan-424.jpg The purpose of the APR is to give the mortgage consumer a basis of comparing several loans by examining the total cost of the loan, including some specific costs, over a period of time by reflecting some of those costs in the interest rate (30 year mortgage rates). Slide 14: The problem with the APR is that it is not required to be calculated the same way across the board, for instance one area were lenders can differ dramatically when it comes to quoting APR, is the number of days of pro-rated interest they use when arriving at their APR calculation. http://www.mortgageslondon.info/wp-content/uploads/2010/05/mortgage-rates-london.jpg Slide 15: Pro-rated interest is the number of days remaining within a month that you will pay interest after your new loan closes, for example if your loan should close on the 15th of the month then you would have 15 days (or 16 if the month has 31 days) interest remaining to pay on the new loan. http://www.northeastmortgage.com/__media__/images/2387_Directi-green-Finance1.jpg Slide 16: The problem with lenders including the pro-rated interest in the APR is that there is no uniform requirement for how it is quoted. http://thumbshots.blogcatalog.com/4325765_large.jpg Slide 17: Some lenders use 15 days in their calculation and some may use 30 days, a few may even use zero days of pro-rated interest in their APR calculation so it will appear (somewhat deceptively) to be the lowest among their competitors. http://1.bp.blogspot.com/_giGZ_kNOLYY/TMnbeVmk09I/AAAAAAAAAr4/O9V-HyPAWuY/s1600/mortgage.jpg Slide 18: With so many sub-prime borrowers having been burned recently by adjustable rate mortgages(ARM), ARMs are being avoided like the plague. It’s unfortunate that all adjustable loans are being written off by many consumers and are now being presented in the same negative light. In fact, given the right circumstances, an adjustable loan can be a wonderful tool for managing one’s personal cash flow, if a borrower is both responsible and educated in maintaining their own finances. What type of loan would be best mortgage for you? Slide 19: http://www.mortgage-rates-calgary.com/public/sites/614/best-mortgage_rate.jpg ARMs can also be useful for borrowers who have a short term ownership horizon, perhaps of less than 3-5 years. Of course given the soft real estate market currently experienced throughout the country, buying a home with such a short term time horizon would likely be a foolish strategy. Slide 20: Fixed rate mortgages (30 year mortgage rates) are always a safe bet. Borrowers opting for the 30 year can always make additional payments to shorten the term of the loan (assuming they take a recommended no prepayment penalty loan), this way they remain in control of managing their mortgage payment and cash flow. http://www.mirren-properties.com/files/QuickSiteImages/QS_banner_right.jpg Slide 21: http://www.mortgagemedics.ca/images/mortgage-toronto-best-rates.jpg A 15 year mortgage can be a terrific, less costly option for the more mature borrower who does not have as many competing demands for their cash (i.e. saving for retirement, kid’s college education, etc.). Slide 23: So is there a better way to find the best mortgage rates? Ultimately it comes down to building a relationship with your mortgage lender. Whether you are buying your first home or refinancing the home you have the mortgage lenders, who will help you to understand mortgages written in simple language so you know exactly what you are getting.