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Buying a home and paying for a mortgage are very expensive financial commitments. Its an important decision and one that should be considered with great care before taking the plunge. If you still want to purchase a home, but you are worried about the financial implications on your budget, you might want to look into an interest-only mortgage. An interest-only mortgage is a type of mortgage where you only pay the interest on your mortgage, never any of the actual loan.

When you sell your home, you pay back the mortgage. What are the advantages of an interest-only mortgage? The biggest advantage for many of these mortgage holders is the extremely low monthly payments as compared to traditional mortgages. This type of loan is also good for people who plan to be in their homes for only a short period of time. The term on this loan is short, usually only 5 to 7 years. People who plan to move soon may benefit from this because of the short-commitment and low payments. It can also be good for people with bad credit as it provides a way to improve their credit ratings.

Of course, with any advantages come disadvantages. Some disadvantages of interest-only loans are that you may not have enough money at the end of the mortgage to pay back the capital. If that happens, you may lose your home at a bad time in your life. Interest-only loan bearers must have a sufficient source of funding to pay back the mortgage otherwise it can be a disaster. Overall, its a financially risky option because you take the chance on your home depreciating and throwing your money down the drain.

As in all mortgages, its advisable to meet with a qualified mortgage professional to learn the details and legal definitions behind these types of loans. A good lender will tell you about the best types of mortgages for your unique financial situation. Its your money, your home and your future. You need to take the time to figure out the best fit for you, otherwise you risk losing more than just your credit rating.

Please feel free to visit my site, you'll find a lot of great and useful information about financing or refinancing your property. Simply click on the link below or copy and paste it into your browsers address bar: http://www.seanwatson-mortgage- specialist.com/ You may also reprint this article as long as the resource box is left intact and all links are hyperlinked.

Sean Watson is a licensed mortgage broker that lives in the state of Florida. He specializes in working with homeowners that have less than perfect credit and helps them do the things necessary to improve their credit ratings, so that they will no longer have to pay the higher rates and fees typically associated with having a blemished credit profile.

posted by qzqcuz  # 6:56 PM 0 comments

Do you want to get a mortgage broker or lender license? Do you need to get it NOW? I am frequently asked how long it will take for a mortgage company to get a mortgage broker or lender license. Unfortunately, it depends upon which state you are asking about.

There are the less populous states, which also tend to be the less popular states, such as Iowa, New Hampshire, Arkansas, and Mississippi, where the first review takes less than 3 weeks. If the application is perfect, then you have a license in your hand in less than one month. The other end of the spectrum is New York, which can take 8 to 9 months, and I've never seen a perfect application submitted to New York.

Many times, the problem is that the mortgage company is so eager to get that application in to the Banking Department that they do not submit each document that is requested or answer every question. The licensing reviewers will not let you skip a question or leave out one of the required back-up documents, i.e., letter of reference, current financial statement, or official bank or certified checks instead of company checks for the fees. The devil is always in the details. You cannot be too detail-oriented when submitting a license application.

Another issue that slows down the application process is the time of year in which you submit your license application. If the banking department is also in renewal season, you will experience a slower-than-usual timeframe. A few states have licenses that never expire so that is not always an issue. However, most states issue licenses that need to be renewed every year or every two years. Most licensing departments are under-staffed. When renewal season comes around, a reviewer may be pulled from new applications and re-assigned to processing renewal applications. That means a new application sits in a corner for maybe a month until the backlog of renewals has been cleared. Or the banking department will ask you if you want to wait until all new licenses are issued to avoid the need for instant renewal on a license that youve held for maybe a month.

If you consult with a company or law firm that specializes in mortgage company licensing and you get an answer to the question "how long will it take" that sounds much shorter than the responses you have been receiving from other companies or law firms, find out why they can give you such a favorable answer. It's better to know upfront that the process is slow than to gear up and hire loan officers for a license that won't be in your office for several months, no matter what you have been promised. But sometimes, a law firm has a good relationship with the application reviewers and the reviewers will make sure that the application is sped through the review process.

Robin Gronsky has represented numerous mortgage brokers and mortgage lenders with their licensing and compliance needs for close to a decade. You can find out more about the licensing process and license compliance issues by visiting her web site at http://www.mortgagelicensesolutions.com or call her at 866-821-4602.

posted by qzqcuz  # 9:37 AM 0 comments