Somerset Mortgage Lender's

LIVING THE AMERICAN DREAM AND OWNING YOUR OWN HOME BY: GREGG MARCUS

2010-02-18T10:06:35.981-05:00

The American dream of homeownership is stronger than ever today. And in our income tax structure, the difference in retained income, or take home pay, is drastic when we compare the family that rents to the family that owns their home. Owning a home is perhaps the single most effective income tax shelter left available for the middle class. While 401k and other retirement savings plans do allow pre-tax contributions and the opportunity to earn interest on these funds that our employers do not take taxes out of, you cannot live in a retirement account, nor do they come with backyards for the kids. Many renters are paying so much in rent to the landlord each month that the tax benefits of owning their own home make the costs identical.

Owning a home means that your monthly housing expense is similar to a savings plan, while renters only support the savings plans of their landlords. Homes appreciate in value over time; just as your retirement accounts earn interest on monies BEFORE the taxes come out, so does real estate, and so will your home. Houses come in many shapes and varieties, as do people who rent them or those smarter people who own them. Owning the space you live in is the key to capturing this benefit. Whether you choose to buy a single family residence, or a multi family home that allows you to rent out part of the house, or a condo or a coop, getting out of the renter group and into the owner group makes financial sense.

You may think that this all sounds great, but you are wondering how the magical increase in your take home pay comes about. Well, when you took your job your employer had you complete an IRS form which set the number of dependents upon which taxes would be withdrawn from your paycheck. Your account can assist you in calculating just how many extra dependents you can claim to receive the income tax savings benefit each week instead of waiting until the end of the year for a refund. By this simple act of completing a form with the assistance of your accountant, you can see the tax savings benefit of your new home purchase immediately, from the very first paycheck you receive after the closing.

There is another pleasant surprise you get when you buy a home – the closing costs that you pay when purchasing your home also have tax savings benefits. You have to have an answer for the friend or relative who tells you all about the joys of getting that big refund check when you file your taxes. Just remind them that the IRS does not pay interest on your money when you overpay your taxes every week and get a refund in the beginning of the next year when you file your taxes. After all, it is YOUR money to begin with, so why should the government get to hold and use your money for free all year?

Today you can buy a home without any down payment, and you can finance your home in hundreds of ways. Find a reputable lender to open your eyes to the possibilities, check with your tax advisor about the advantages and potential savings, and take that first step in living the American Dream !

Maintained by Derek Nichlos

This weblog is sponsored by Somerset Mortgage Lenders.

CREDIT MYTHS AND MAGIC BY: Gregg Marcus

2010-02-08T12:32:09.364-05:00

Gregg Marcus

CREDIT MYTHS AND MAGIC – SECRETS SHARED

Credit is a wonderful and uniquely American concept – live today and pay for today tomorrow. Credit is like a drug addiction – once you try it you can never get enough of it. Credit is like quicksand – avoid it or you may sink underneath it and never be seen again. Credit is like magic –it enables me to manage my finances and allows me to invest profitably with other people’s money.

These four statements about credit reflect four drastically different attitudes and philosophies about budgets and spending habits. Which of the above best describes you and your credit habits and patterns? Have you even stopped enjoying the benefits or crying from the pain of the monthly burden of minimum payments long enough to think about it? If you haven’t, it is time for you to do it – before it is too late!

A credit report is nothing more than a mirror, is similar to a snapshot, and works like a key. The credit report shows your credit history – how much you owe today to whom, what your minimum monthly payments are, how you have paid your creditors, whether or not you have filed for bankruptcy, what type of bankruptcy and when, and any recorded judgments or tax liens you may have. The credit report contains an address history, a list of any and all creditors to whom you applied for credit that have run your report, and also has information about any disputes you have registered with the credit bureaus, as is your legal right to do.

The mirror analogy is the most important if you are trying to analyze what you do with credit – it will show you your spending habits and payment patterns as reported by your creditors to the three credit bureaus – Trans Union, Equifax, and Experian. If you are turned down for credit as a result of your report, the laws require the creditor to send you a notice informing you which bureau or bureaus contained the information that factored into your denial. The same legal notice contains the address you can use to obtain a FREE copy of your report.

If your monthly bills are more than you can afford, causing you to take out more credit to be able to live while paying your existing credit, you need to check yourself into rehab – you cannot get help too soon! A qualified loan officer from a reputable direct lender may be your life preserver – you can refinance, knock out the bills that are choking you, and take back control of your finances. Homebridge loan officers are trained to help, as we have the experience and the loan programs that are necessary, and more than 15 years of success stories to prove it. Grab the rope and pull yourself out of the mess before you hang yourself with it!

Some consumers actually make the credit game work to their advantage. These people understand that the value of credit and a good credit history lies in the opportunity to invest monies when the time is right. Because they use their credit when they are using their disposable income to invest and make money, they are always conscious of the payments and the interest costs associated with their actions, and seldom get into trouble. These consumers see the magic in the credit available to them, and do not lose sight of the dangers.

View your credit as the key to financial well being and fiscal health – it can unlock the cell door of your payment prison. The equity in your home may represent the solution you desperately need to get things back on track. Just remember the golden rule of mortgage refinancing – your home is your family’s castle, and there is no crime worse than encumbering it with a payment you cannot afford!

Article maintained by: Derek Nichlos

This weblog is sponsored by Somerset Mortgage Lenders.

THE DEVIL IS IN THE DETAILS - Gregg Marcus

2010-01-27T16:20:06.142-05:00

I was speaking to a friend over the weekend – she and her husband have been thinking of refinancing their existing home mortgage and they have been shopping around the web doing a research.

Their situation is not uncommon - many homeowners today do their home financing research on the internet. My friends asked that I not use their names, so let’s call them Harriet and Henry Homeowner to protect their privacy.

Harriet and Henry have owned their home for five years. When they purchased the home it was their first, and the realtor introduced them to the broker who provided the financing. They were confused by many of the forms sent to them during the application process, and were constantly told, “Don’t worry. Let us take care of the details. You have to get ready to move and that part of the purchase process is our job – relax!” NO ONE ASKED ABOUT THEIR PLANS OR FINANCIAL EXPECTATIONS, AND NO ONCE CARED ABOUT ANYTHING EXCEPT THEIR COMMISSION.

It turned out that all the relaxing resulted in shock therapy at the closing table. The closing costs, finally spelled out in agonizing detail the day before the closing, were almost 20% higher than Henry and Harriet expected them to be. To make matters worse, the margin on their hybrid adjustable rate mortgage loan was higher than they expected. Faced with no place to live as of the following Monday, and overwhelmed by the excitement of owning their first home, the Homeowner family went peacefully through the process as many first time homebuyers do.

With the fixed period of their hybrid adjustable about to expire in four months, Harriet and Henry decided that now is the time to refinance. They also plan to take about $75,000 of their equity out of their home to dormer the second floor of their home to make more room for their growing family. Having been rushed and hustled through the process the first time, this time they have vowed to think of and demand answers to ALL of their questions before they commit to a lender or a program. They are doing things the right way this time, but they are having some interesting experiences I wanted to share.

Harriet and Henry entered their information on a web site promising to have four lenders contact them with hours with offers specifically tailored to their needs. One form – one click – and suddenly the whole financial world was going to compete for their loan.

The first call came the next day. The loan officer was not interested in listening to what the Homeowners had to say about their plan for this new loan. All he wanted them to do was “Trust me – I AM a professional and MY expertise is all that you need to know. I will TELL you the best program and structure for your new loan!” After five minutes of this high pressure nonsense, my friends politely said good bye and chalked it up to the learning process. They wisely decided that anyone who was not interested in their needs and goals was not going to get their business!

The second call came that evening. This lender’s representative only wanted to push his company’s hottest product – a six month arm loan that was interest only for the first five years that came with a three year prepayment penalty as a bonus of dubious value. While he offered to send out paperwork immediately to them, he became hard of hearing when asked about other mortgage programs and products. They hung up on him with a curt request to please lose their phone number and never call back. Five minutes later a supervisor from this same national lender was on the phone, trying a more sophisticated and high level form of high pressure sale. The supervisor answered none of their questions as he tried to force them to say yes.

The third lender’s loan officer left a wrong number to call back – not confidence inspiring, and an easy decision for Harriet and Henry to cross off their list.

The fourth lender to call seemed to be more inclined to be helpful. The representative was polite, listened to their needs and faxed over a Good Faith Estimate of closing costs and information about the loan program she was recommending they take. The problem was that she demanded a lock in fee, an application fee, and an appraisal fee the SAME day – otherwise the offer could change. Harriet and Henry asked for a few hours to think things over. The rep promised to call them at 8pm that evening. That was three days ago and they are not holding their breath. Their refusal to fork over a bucketful full of fees seemed to wipe them out of this loan officer’s memory. Harriet and Henry have been regretful about the fees they paid on the original mortgage loan when they purchased their home five years ago; this loan officer’s desperate attempts to talk them into laying out money before they had time to think about the offer was not a mistake they intended to make again.

Frustrated, they went back to their current mortgage lender – after being told it would take about six weeks and still involved a full application process after being an on time customer for five years, they eliminated this option as well.

The web site which Harriet and Henry found promised four offers. Let me offer you four simple rules all consumers shopping for a mortgage loan should follow. Whether you’re a first time homebuyer, or if you are someone refinancing for the fifth time in ten years and consider yourself a veteran of the mortgage wars, these simple common sense rules will save you money and disappointments.

1)TAKE NOTHING FOR GRANTED. HAVE A LIST OF YOUR GOALS AND QUESTIONS IN FRONT OF YOU BEFORE YOU EVEN START TO SHOP! RUN AS FAST AS YOU CAN FROM ANY LENDER TOO BUSY OR UNABLE TO ANSWER YOUR QUESTIONS WITHOUT OBLIGATION.

2)DEMAND WRITTEN COST ESTIMATES AND EXPECT A GOOD LENDER TO CHEERFULLY PROVIDE THEM WITHOUT COMPLAINT THE SAME DAY. NEVER RELY ON ANY VERBAL PROMISES!

3)PAY NO FEES WITHOUT DETAILS! A REPUTABLE LENDER WILL NOT LOOK TO COLLECT FEES BEFORE YOU ARE COMFORTABLE WITH THEIR OFFER AND UNDERSTAND THE COSTS INVOLVED.

4)DO NOT RUSH INTO THE APPLICATION PROCESS. TODAY’S MORTGAGE REALITY ALLOWS CLOSINGS IN LESS THAN TEN DAYS – THERE IS NO REASON ON EARTH TO PROCEED UNTIL YOU ARE CONVINCED THAT YOU HAVE THE BEST SOLUTION POSSIBLE FOR YOUR NEEDS AND FINANCIAL ABILITIES AND ANY FORESEEABLE MAJOR LIFE EVENTS ON THE HORIZON.

A Story by Gregg Marcus.

###

This weblog is sponsored by Somerset Mortgage Lenders.

HOW DOES HOME EQUITY WORK ? Article By: Gregg Marcus

2010-01-04T15:52:14.622-05:00

Gregg Marcus: How Home Equity Works
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Gregg Marcus and Somerset Mortgage Lenders strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this brief article on how home equity works.

What is Home Equity?
Your home equity is the appraised value remaining in your home after you subtract the remaining balance you owe on your existing home mortgage(s). It can be thought of as the part of the home you actually own instead of the bank: the part you’ve paid for so far. It isn’t difficult to build equity in your home, and chances are if you’ve owned your home for a while and have been making your regular mortgage payments, you probably have built a considerable amount of home equity already. Though the housing market rises and falls in cycles, the overall tendency is consistently upward. In other words, property values tend to rise over the long term.

How Can Home Equity Be Used?
Once you have equity in your home, you can start to use it to fund nearly anything you want or need. Having equity in your home puts you in a powerful position, as you can use that equity to qualify for credit and borrow money. Buy a new car, take that dream vacation, fund a college education, and make renovations and improvements to your home. Whether to pay for an emergency or finance a dream, there are two primary ways to tap into the wellspring that is your home equity: a home equity loan and a home equity line of credit.

What Are Home Equity Interest Rates Like?
A good question to ask before borrowing money from any source is: how much is it going to cost in the long run? Because your home is being used as collateral on the home equity loan or home equity line of credit, the risk for the lender is considerably lower, and therefore interest rates on home equity loans and home equity lines of credit are usually lower than the average interest rate on a credit card. Home equity loans and home equity lines of credit are, however, usually higher than the interest rate on the average fixed rate mortgage. And in general, home equity loans usually have lower interest rates than home equity lines of credit.

What Are Some of the Other Benefits of Home Equity?
As if borrowing money weren’t advantage enough, home equity offers a bevy of other benefits as well.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

Maintained by: Derek Nichlos

This weblog is sponsored by Somerset Mortgage Lenders.

Free Rate Quote 8006759783 (Mortgage Terms by Gregg Marcus)

2009-12-03T12:00:39.375-05:00

Free Rate Quote

800-675.9783

Mortgage Glossary

Whether you are buying a home or refinancing, applying for a mortgage is a big step. Use our Mortgage Terms Glossary to help understand every step of the process. Our glossary of mortgage loan terminology defines a variety of terms used by loan officers and real estate professionals. Add our Mortgage Terms Glossary to your Favorites for quick look-ups throughout your mortgage application process

203(b): FHA's single family program which provides mortgage insurance to lenders to protect against the borrower defaulting; 203(b) is used to finance the purchase of new or existing one to four family housing; 203(b) insured loans are known for requiring a low down payment, flexible qualifying guidelines, limited fees, and a limit on maximum loan amount. >

203(k): this FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of its rehabilitation through a single mortgage loan.

"A" Loan or "A" Paper: a credit rating where the FICO score is 660 or above. There have been no late mortgage payments within a 12-month period. This is the best credit rating to have when entering into a new loan.

ARM: Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap.

Abstract of Title: documents recording the ownership of property throughout time.

Acceleration: the right of the lender to demand payment on the outstanding balance of a loan.

Acceptance: the written approval of the buyer's offer by the seller.

Additional Principal Payment: money paid to the lender in addition to the established payment amount used directly against the loan principal to shorten the length of the loan.

Adjustable-Rate Mortgage (ARM): a mortgage loan that does not have a fixed interest rate. During the life of the loan the interest rate will change based on the index rate. Also referred to as adjustable mortgage loans (AMLs) or variable-rate mortgages (VRMs).

Adjustment Date: the actual date that the interest rate is changed for an ARM.

Adjustment Index: the published market index used to calculate the interest rate of an ARM at the time of origination or adjustment.

Adjustment Interval: the time between the interest rate change and the monthly payment for an ARM. The interval is usually every one, three or five years depending on the index.

Affidavit: a signed, sworn statement made by the buyer or seller regarding the truth of information provided.

Amenity: a feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, woods, water) or man-made (like a swimming pool or garden).

American Society of Home Inspectors: the American Society of Home Inspectors is a professional association of independent home inspectors. Phone: (800) 743-2744

Amortization: a payment plan that enables you to reduce your debt gradually through monthly payments. The payments may be principal and interest, or interest-only. The monthly amount is based on the schedule for the entire term or length of the loan.

Annual Mortgagor Statement: yearly statement to borrowers detailing the remaining principal and amounts paid for taxes and interest.

Annual Percentage Rate (APR): a measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders, by federal law, follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans. APR is a higher rate than the simple interest of the mortgage.

Application: the first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.

Application Fee: a fee charged by lenders to process a loan application.

Appraisal: a document from a professional that gives an estimate of a property's fair market value based on the sales of comparable homes in the area and the features of a property; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

Appraisal Fee: fee charged by an appraiser to estimate the market value of a property.

Appraised Value: an estimation of the current market value of a property.

Appraiser: a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.

Appreciation: an increase in property value.

Arbitration: a legal method of resolving a dispute without going to court.

As-is Condition: the purchase or sale of a property in its existing condition without repairs.

Asking Price: a seller's stated price for a property.

Assessed Value: the value that a public official has placed on any asset (used to determine taxes).

Assessments: the method of placing value on an asset for taxation purposes.

Assessor: a government official who is responsible for determining the value of a property for the purpose of taxation.

Assets: any item with measurable value.

Assumable Mortgage: when a home is sold, the seller may be able to transfer the mortgage to the new buyer. This means the mortgage is assumable. Lenders generally require a credit review of the new borrower and may charge a fee for the assumption. Some mortgages contain a due-on-sale clause, which means that the mortgage may not be transferable to a new buyer. Instead, the lender may make you pay the entire balance that is due when you sell the home. An assumable mortgage can help you attract buyers if you sell your home.

Assumption Clause: a provision in the terms of a loan that allows the buyer to take legal responsibility for the mortgage from the seller.

Automated Underwriting: loan processing completed through a computer-based system that evaluates past credit history to determine if a loan should be approved. This system removes the possibility of personal bias against the buyer.

Average Price: determining the cost of a home by totaling the cost of all houses sold in one area and dividing by the number of homes sold.

"B" Loan or "B" Paper: FICO scores from 620 - 659. Factors include two 30 day late mortgage payments and two to three 30 day late installment loan payments in the last 12 months. No delinquencies over 60 days are allowed. Should be two to four years since a bankruptcy. Also referred to as Sub-Prime.

Back End Ratio (debt ratio): a ratio that compares the total of all monthly debt payments (mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross monthly income.

Back to Back Escrow: arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time.

Balance Sheet: a financial statement that shows the assets, liabilities and net worth of an individual or company.

Balloon Loan or Mortgage: a mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.

Balloon Payment: the final lump sum payment due at the end of a balloon mortgage.

Bankruptcy: a federal law whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay.

Biweekly Payment Mortgage: a mortgage paid twice a month instead of once a month, reducing the amount of interest to be paid on the loan.

Borrower: a person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.

Bridge Loan: a short-term loan paid back relatively fast. Normally used until a long-term loan can be processed.

Broker: a licensed individual or firm that charges a fee to serve as the mediator between the buyer and seller. Mortgage brokers are individuals in the business of arranging funding or negotiating contracts for a client, but who does not loan the money. A real estate broker is someone who helps find a house.

Building Code: based on agreed upon safety standards within a specific area, a building code is a regulation that determines the design, construction, and materials used in building.

Budget: a detailed record of all income earned and spent during a specific period of time.

Buy Down: the seller pays an amount to the lender so the lender provides a lower rate and lower payments many times for an ARM. The seller may increase the sales price to cover the cost of the buy down.

"C" Loan or "C" Paper: FICO scores typically from 580 to 619. Factors include three to four 30 day late mortgage payments and four to six 30 day late installment loan payments or two to four 60 day late payments. Should be one to two years since bankruptcy. Also referred to as Sub - Prime.

Callable Debt: a debt security whose issuer has the right to redeem the security at a specified price on or after a specified date, but prior to its stated final maturity.

Cap: a limit, such as one placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease, either at each adjustment period or during the life of the mortgage. Payment caps do not limit the amount of interest the lender is earning, so they may cause negative amortization.

Capacity: The ability to make mortgage payments on time, dependant on assets and the amount of income each month after paying housing costs, debts and other obligations.

Capital Gain: the profit received based on the difference of the original purchase price and the total sale price.

Capital Improvements: property improvements that either will enhance the property value or will increase the useful life of the property.

Capital or Cash Reserves: an individual's savings, investments, or assets.

Cash-Out Refinance: when a borrower refinances a mortgage at a higher principal amount to get additional money. Usually this occurs when the property has appreciated in value. For example, if a home has a current value of $100,000 and an outstanding mortgage of $60,000, the owner could refinance $80,000 and have additional $20,000 in cash.

Cash Reserves: a cash amount sometimes required of the buyer to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender.

Casualty Protection: property insurance that covers any damage to the home and personal property either inside or outside the home.

Certificate of Title: a document provided by a qualified source, such as a title company, that shows the property legally belongs to the current owner; before the title is transferred at closing, it should be clear and free of all liens or other claims.

Chapter 7 Bankruptcy: a bankruptcy that requires assets be liquidated in exchange for the cancellation of debt.

Chapter 13 Bankruptcy: this type of bankruptcy sets a payment plan between the borrower and the creditor monitored by the court. The homeowner can keep the property, but must make payments according to the court's terms within a 3 to 5 year period.

Charge-Off: the portion of principal and interest due on a loan that is written off when deemed to be uncollectible.

Clear Title: a property title that has no defects. Properties with clear titles are marketable for sale.

Closing: the final step in property purchase where the title is transferred from the seller to the buyer. Closing occurs at a meeting between the buyer, seller, settlement agent, and other agents. At the closing the seller receives payment for the property. Also known as settlement.

Closing Costs: fees for final property transfer not included in the price of the property. Typical closing costs include charges for the mortgage loan such as origination fees, discount points, appraisal fee, survey, title insurance, legal fees, real estate professional fees, prepayment of taxes and insurance, and real estate transfer taxes. A common estimate of a Buyer's closing costs is 2 to 4 percent of the purchase price of the home. A common estimate for Seller's closing costs is 3 to 9 percent.

Cloud On The Title: any condition which affects the clear title to real property.

Co-Borrower: an additional person that is responsible for loan repayment and is listed on the title.

Co-Signed Account: an account signed by someone in addition to the primary borrower, making both people responsible for the amount borrowed.

Co-Signer: a person that signs a credit application with another person, agreeing to be equally responsible for the repayment of the loan.

Collateral: security in the form of money or property pledged for the payment of a loan. For example, on a home loan, the home is the collateral and can be taken away from the borrower if mortgage payments are not made.

Collection Account: an unpaid debt referred to a collection agency to collect on the bad debt. This type of account is reported to the credit bureau and will show on the borrower's credit report.

Commission: an amount, usually a percentage of the property sales price that is collected by a real estate professional as a fee for negotiating the transaction. Traditionally the home seller pays the commission. The amount of commission is determined by the real estate professional and the seller and can be as much as 6% of the sales price.

Common Stock: a security that provides voting rights in a corporation and pays a dividend after preferred stock holders have been paid. This is the most common stock held within a company.

Comparative Market Analysis (COMPS): a property evaluation that determines property value by comparing similar properties sold within the last year.

Compensating Factors: factors that show the ability to repay a loan based on less traditional criteria, such as employment, rent, and utility payment history.

Condominium: a form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex. The owner also shares financial responsibility for common areas.

Conforming loan: is a loan that does not exceed Fannie Mae's and Freddie Mac's loan limits. Freddie Mac and Fannie Mae loans are referred to as conforming loans.

Consideration: an item of value given in exchange for a promise or act.

Construction Loan: a short-term, to finance the cost of building a new home. The lender pays the builder based on milestones accomplished during the building process. For example, once a sub-contractor pours the foundation and it is approved by inspectors the lender will pay for their service.

Contingency: a clause in a purchase contract outlining conditions that must be fulfilled before the contract is executed. Both, buyer or seller may include contingencies in a contract, but both parties must accept the contingency.

Conventional Loan: a private sector loan, one that is not guaranteed or insured by the U.S. government.

Conversion Clause: a provision in some ARMs allowing it to change to a fixed-rate loan at some point during the term. Usually conversions are allowed at the end of the first adjustment period. At the time of the conversion, the new fixed rate is generally set at one of the rates then prevailing for fixed rate mortgages. There may be additional cost for this clause.

Convertible ARM: an adjustable-rate mortgage that provides the borrower the ability to convert to a fixed-rate within a specified time.

Cooperative (Co-op): residents purchase stock in a cooperative corporation that owns a structure; each stockholder is then entitled to live in a specific unit of the structure and is responsible for paying a portion of the loan.

Cost of Funds Index (COFI): an index used to determine interest rate changes for some adjustable-rate mortgages.

Counter Offer: a rejection to all or part of a purchase offer that negotiates different terms to reach an acceptable sales contract.

Covenants: legally enforceable terms that govern the use of property. These terms are transferred with the property deed. Discriminatory covenants are illegal and unenforceable. Also known as a condition, restriction, deed restriction or restrictive covenant.

Credit: an agreement that a person will borrow money and repay it to the lender over time.

Credit Bureau: an agency that provides financial information and payment history to lenders about potential borrowers. Also known as a National Credit Repository.

Credit Counseling: education on how to improve bad credit and how to avoid having more debt than can be repaid.

Credit Enhancement: a method used by a lender to reduce default of a loan by requiring collateral, mortgage insurance, or other agreements.

Credit Grantor: the lender that provides a loan or credit.

Credit History: a record of an individual that lists all debts and the payment history for each. The report that is generated from the history is called a credit report. Lenders use this information to gauge a potential borrower's ability to repay a loan.

Credit Loss Ratio: the ratio of credit-related losses to the dollar amount of MBS outstanding and total mortgages owned by the corporation.

Credit Related Expenses: foreclosed property expenses plus the provision for losses.

Credit Related Losses: foreclosed property expenses combined with charge-offs.

Credit Repair Companies: Private, for-profit businesses that claim to offer consumers credit and debt repayment difficulties assistance with their credit problems and a bad credit report.

Credit Report: a report generated by the credit bureau that contains the borrower's credit history for the past seven years. Lenders use this information to determine if a loan will be granted.

Credit Risk: a term used to describe the possibility of default on a loan by a borrower.

Credit Score: a score calculated by using a person's credit report to determine the likelihood of a loan being repaid on time. Scores range from about 360 - 840: a lower score meaning a person is a higher risk, while a higher score means that there is less risk.

Credit Union: a non-profit financial institution federally regulated and owned by the members or people who use their services. Credit unions serve groups that hold a common interest and you have to become a member to use the available services.

Creditor: the lending institution providing a loan or credit.

Creditworthiness: the way a lender measures the ability of a person to qualify and repay a loan.

Debtor: The person or entity that borrows money. The term debtor may be used interchangeably with the term borrower.

Debt-to-Income Ratio: a comparison or ratio of gross income to housing and non-housing expenses; With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.

Debt Security: a security that represents a loan from an investor to an issuer. The issuer in turn agrees to pay interest in addition to the principal amount borrowed.

Deductible: the amount of cash payment that is made by the insured (the homeowner) to cover a portion of a damage or loss. Sometimes also called "out-of-pocket expenses." For example, out of a total damage claim of $1,000, the homeowner might pay a $250 deductible toward the loss, while the insurance company pays $750 toward the loss. Typically, the higher the deductible, the lower the cost of the policy.

Deed: a document that legally transfers ownership of property from one person to another. The deed is recorded on public record with the property description and the owner's signature. Also known as the title.

Deed-in-Lieu: to avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process does not allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure.

Default: the inability to make timely monthly mortgage payments or otherwise comply with mortgage terms. A loan is considered in default when payment has not been paid after 60 to 90 days. Once in default the lender can exercise legal rights defined in the contract to begin foreclosure proceedings

Delinquency: failure of a borrower to make timely mortgage payments under a loan agreement. Generally after fifteen days a late fee may be assessed.

Deposit (Earnest Money): money put down by a potential buyer to show that they are serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. During the contingency period the money may be returned to the buyer if the contingencies are not met to the buyer's satisfaction.

Depreciation: a decrease in the value or price of a property due to changes in market conditions, wear and tear on the property, or other factors.

Derivative: a contract between two or more parties where the security is dependent on the price of another investment.

Disclosures: the release of relevant information about a property that may influence the final sale, especially if it represents defects or problems. "Full disclosure" usually refers to the responsibility of the seller to voluntarily provide all known information about the property. Some disclosures may be required by law, such as the federal requirement to warn of potential lead-based paint hazards in pre-1978 housing. A seller found to have knowingly lied about a defect may face legal penalties.

Discount Point: normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan. In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to give you a lower rate and lower payments for part of the mortgage term (usually for one year or less). After the discount period, the ARM rate will probably go up depending on the index rate.

Down Payment: the portion of a home's purchase price that is paid in cash and is not part of the mortgage loan. This amount varies based on the loan type, but is determined by taking the difference of the sale price and the actual mortgage loan amount. Mortgage insurance is required when a down payment less than 20 percent is made.

Document Recording: after closing on a loan, certain documents are filed and made public record. Discharges for the prior mortgage holder are filed first. Then the deed is filed with the new owner's and mortgage company's names.

Due on Sale Clause: a provision of a loan allowing the lender to demand full repayment of the loan if the property is sold.

Duration: the number of years it will take to receive the present value of all future payments on a security to include both principal and interest.

E >

Earnest Money (Deposit): money put down by a potential buyer to show that they are serious about purchasing the home; it becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. During the contingency period the money may be returned to the buyer if the contingencies are not met to the buyer's satisfaction.

Earnings Per Share (EPS): a corporation's profit that is divided among each share of common stock. It is determined by taking the net earnings divided by the number of outstanding common stocks held. This is a way that a company reports profitability.

Easements: the legal rights that give someone other than the owner access to use property for a specific purpose. Easements may affect property values and are sometimes a part of the deed.

EEM: Energy Efficient Mortgage; an FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase

Eminent Domain: when a government takes private property for public use. The owner receives payment for its fair market value. The property can then proceed to condemnation proceedings.

Encroachments: a structure that extends over the legal property line on to another individual's property. The property surveyor will note any encroachment on the lot survey done before property transfer. The person who owns the structure will be asked to remove it to prevent future problems.

Encumbrance: anything that affects title to a property, such as loans, leases, easements, or restrictions.

Equal Credit Opportunity Act (ECOA): a federal law requiring lenders to make credit available equally without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Equity: an owner's financial interest in a property; calculated by subtracting the amount still owed on the mortgage loon(s)from the fair market value of the property.

Escape Clause: a provision in a purchase contract that allows either party to cancel part or the entire contract if the other does not respond to changes to the sale within a set period. The most common use of the escape clause is if the buyer makes the purchase offer contingent on the sale of another house.

Escrow: funds held in an account to be used by the lender to pay for home insurance and property taxes. The funds may also be held by a third party until contractual conditions are met and then paid out.

Escrow Account: a separate account into which the lender puts a portion of each monthly mortgage payment; an escrow account provides the funds needed for such expenses as property taxes, homeowners insurance, mortgage insurance, etc.

Estate: the ownership interest of a person in real property. The sum total of all property, real and personal, owned by a person.

Exclusive Listing: a written contract giving a real estate agent the exclusive right to sell a property for a specific timeframe.

FICO Score: FICO is an abbreviation for Fair Isaac Corporation and refers to a person's credit score based on credit history. Lenders and credit card companies use the number to decide if the person is likely to pay his or her bills. A credit score is evaluated using information from the three major credit bureaus and is usually between 300 and 850.

FSBO (For Sale by Owner): a home that is offered for sale by the owner without the benefit of a real estate professional.

Fair Credit Reporting Act: federal act to ensure that credit bureaus are fair and accurate protecting the individual's privacy rights enacted in 1971 and revised in October 1997.

Fair Housing Act: a law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.

Fair Market Value: : the hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation.

Familial Status: HUD uses this term to describe a single person, a pregnant woman or a household with children under 18 living with parents or legal custodians who might experience housing discrimination.

Fannie Mae: Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential homebuyers. Also known as a Government Sponsored Enterprise (GSE).

FHA: Federal Housing Administration; established in 1934 to advance homeownership opportunities for all Americans; assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults; this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages.

First Mortgage: the mortgage with first priority if the loan is not paid.

Fixed Expenses: payments that do not vary from month to month.

Fixed-Rate Mortgage: a mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change.

Fixture: personal property permanently attached to real estate or real property that becomes a part of the real estate.

Float: the act of allowing an interest rate and discount points to fluctuate with changes in the market.

Flood Insurance: insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the lender will require flood insurance before approving a loan.

Forbearance: a lender may decide not to take legal action when a borrower is late in making a payment. Usually this occurs when a borrower sets up a plan that both sides agree will bring overdue mortgage payments up to date.

Foreclosure: a legal process in which mortgaged property is sold to pay the loan of the defaulting borrower. Foreclosure laws are based on the statutes of each state.

Freddie Mac: Federal Home Loan Mortgage Corporation (FHLM); a federally chartered corporation that purchases residential mortgages, securitizes them, and sells them to investors; this provides lenders with funds for new homebuyers. Also known as a Government Sponsored Enterprise (GSE).

Front End Ratio: a percentage comparing a borrower's total monthly cost to buy a house (mortgage principal and interest, insurance, and real estate taxes) to monthly income before deductions.

GSE: abbreviation for government sponsored enterprises: a collection of financial services corporations formed by the United States Congress to reduce interest rates for farmers and homeowners. Examples include Fannie Mae and Freddie Mac.

Ginnie Mae: Government National Mortgage Association (GNMA); a government-owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment; as With Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders.

Global Debt Facility: designed to allow investors all over the world to purchase debt (loans) of U.S. dollar and foreign currency through a variety of clearing systems.

Good Faith Estimate: an estimate of all closing fees including pre-paid and escrow items as well as lender charges; must be given to the borrower within three days after submission of a loan application.

Graduated Payment Mortgages: mortgages that begin with lower monthly payments that get slowly larger over a period of years, eventually reaching a fixed level and remaining there for the life of the loan. Graduated payment loans may be good if you expect your annual income to increase.

Grantee: an individual to whom an interest in real property is conveyed.

Grantor: an individual conveying an interest in real property.

Gross Income: money earned before taxes and other deductions. Sometimes it may include income from self-employment, rental property, alimony, child support, public assistance payments, and retirement benefits.

Guaranty Fee: payment to FannieMae from a lender for the assurance of timely principal and interest payments to MBS (Mortgage Backed Security) security holders.

HECM (Reverse Mortgage): the reverse mortgage is used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. A lending institution such as a mortgage lender, bank, credit union or savings and loan association funds the FHA insured loan, commonly known as HECM.

Hazard Insurance: protection against a specific loss, such as fire, wind etc., over a period of time that is secured by the payment of a regularly scheduled premium.

HELP: Homebuyer Education Learning Program; an educational program from the FHA that counsels people about the home buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to 1.75% of the home purchase price.

Home Equity Line of Credit: a mortgage loan, usually in second mortgage, allowing a borrower to obtain cash against the equity of a home, up to a predetermined amount.

Home Equity Loan: a loan backed by the value of a home (real estate). If the borrower defaults or does not pay the loan, the lender has some rights to the property. The borrower can usually claim a home equity loan as a tax deduction.
Home Inspection: an examination of the structure and mechanical systems to determine a home's quality, soundness and safety; makes the potential homebuyer aware of any repairs that may be needed. The homebuyer generally pays inspection fees.

Home Warranty: offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner's insurance; coverage extends over a specific time period and does not cover the home's structure.

Homeowner's Insurance: an insurance policy, also called hazard insurance, that combines protection against damage to a dwelling and its contents including fire, storms or other damages with protection against claims of negligence or inappropriate action that result in someone's injury or property damage. Most lenders require homeowners insurance and may escrow the cost. Flood insurance is generally not included in standard policies and must be purchased separately.

Homeownership Education Classes: classes that stress the need to develop a strong credit history and offer information about how to get a mortgage approved, qualify for a loan, choose an affordable home, go through financing and closing processes, and avoid mortgage problems that cause people to lose their homes.

Homestead Credit: property tax credit program, offered by some state governments, that provides reductions in property taxes to eligible households.

Housing Counseling Agency: provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying.

HUD: the U.S. Department of Housing and Urban Development; established in 1965, HUD works to create a decent home and suitable living environment for all Americans; it does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws.

HUD1 Statement: also known as the "settlement sheet," or "closing statement" it itemizes all closing costs; must be given to the borrower at or before closing. Items that appear on the statement include real estate commissions, loan fees, points, and escrow amounts.

HVAC: Heating, Ventilation and Air Conditioning; a home's heating and cooling system.

Indemnification: to secure against any loss or damage, compensate or give security for reimbursement for loss or damage incurred. A homeowner should negotiate for inclusion of an indemnification provision in a contract with a general contractor or for a separate indemnity agreement protecting the homeowner from harm, loss or damage caused by actions or omissions of the general (and all sub) contractor.

Index: the measure of interest rate changes that the lender uses to decide how much the interest rate of an ARM will change over time. No one can be sure when an index rate will go up or down. If a lender bases interest rate adjustments on the average value of an index over time, your interest rate would not be as volatile. You should ask your lender how the index for any ARM you are considering has changed in recent years, and where it is reported.

Inflation: the number of dollars in circulation exceeds the amount of goods and services available for purchase; inflation results in a decrease in the dollar's value.

Inflation Coverage: endorsement to a homeowner's policy that automatically adjusts the amount of insurance to compensate for inflationary rises in the home's value. This type of coverage does not adjust for increases in the home's value due to improvements.

Inquiry: a credit report request. Each time a credit application is completed or more credit is requested counts as an inquiry. A large number of inquiries on a credit report can sometimes make a credit score lower.

Interest: a fee charged for the use of borrowing money.

Interest Rate: the amount of interest charged on a monthly loan payment, expressed as a percentage.

Interest Rate Swap: a transaction between two parties where each agrees to exchange payments tied to different interest rates for a specified period of time, generally based on a notional principal amount.

Intermediate Term Mortgage: a mortgage loan with a contractual maturity from the time of purchase equal to or less than 20 years.

Insurance: protection against a specific loss, such as fire, wind etc., over a period of time that is secured by the payment of a regularly scheduled premium.

Joint Tenancy (with Rights of Survivorship): two or more owners share equal ownership and rights to the property. If a joint owner dies, his or her share of the property passes to the other owners, without probate. In joint tenancy, ownership of the property cannot be willed to someone who is not a joint owner.

Judgment: a legal decision; when requiring debt repayment, a judgment may include a property lien that secures the creditor's claim by providing a collateral source.

Jumbo Loan: or non-conforming loan, is a loan that exceeds Fannie Mae's and Freddie Mac's loan limits. Freddie Mac and Fannie Mae loans are referred to as conforming loans.

Late Payment Charges: the penalty the homeowner must pay when a mortgage payment is made after the due date grace period.

Lease: a written agreement between a property owner and a tenant (resident) that stipulates the payment and conditions under which the tenant may occupy a home or apartment and states a specified period of time.

Lease Purchase (Lease Option): assists low to moderate income homebuyers in purchasing a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.

Lender: A term referring to an person or company that makes loans for real estate purchases. Sometimes referred to as a loan officer or lender.

Lender Option Commitments: an agreement giving a lender the option to deliver loans or securities by a certain date at agreed upon terms.

Liabilities: a person's financial obligations such as long-term / short-term debt, and other financial obligations to be paid.

Liability Insurance: insurance coverage that protects against claims alleging a property owner's negligence or action resulted in bodily injury or damage to another person. It is normally included in homeowner's insurance policies.

Lien: a legal claim against property that must be satisfied when the property is sold. A claim of money against a property, wherein the value of the property is used as security in repayment of a debt. Examples include a mechanic's lien, which might be for the unpaid cost of building supplies, or a tax lien for unpaid property taxes. A lien is a defect on the title and needs to be settled before transfer of ownership. A lien release is a written report of the settlement of a lien and is recorded in the public record as evidence of payment.

Lien Waiver: A document that releases a consumer (homeowner) from any further obligation for payment of a debt once it has been paid in full. Lien waivers typically are used by homeowners who hire a contractor to provide work and materials to prevent any subcontractors or suppliers of materials from filing a lien against the homeowner for nonpayment.

Life Cap: a limit on the range interest rates can increase or decrease over the life of an adjustable-rate mortgage (ARM).

Line of Credit: an agreement by a financial institution such as a bank to extend credit up to a certain amount for a certain time to a specified borrower.

Liquid Asset: a cash asset or an asset that is easily converted into cash.

Listing Agreement: a contract between a seller and a real estate professional to market and sell a home. A listing agreement obligates the real estate professional (or his or her agent) to seek qualified buyers, report all purchase offers and help negotiate the highest possible price and most favorable terms for the property seller.

Loan: money borrowed that is usually repaid with interest.

Loan Acceleration: an acceleration clause in a loan document is a statement in a mortgage that gives the lender the right to demand payment of the entire outstanding balance if a monthly payment is missed.

Loan Fraud: purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.

Loan Officer: a representative of a lending or mortgage company who is responsible for soliciting homebuyers, qualifying and processing of loans. They may also be called lender, loan representative, account executive or loan rep.

Loan Origination Fee: a charge by the lender to cover the administrative costs of making the mortgage. This charge is paid at the closing and varies with the lender and type of loan. A loan origination fee of 1 to 2 percent of the mortgage amount is common.

Loan Servicer: the company that collects monthly mortgage payments and disperses property taxes and insurance payments. Loan servicers also monitor nonperforming loans, contact delinquent borrowers, and notify insurers and investors of potential problems. Loan servicers may be the lender or a specialized company that just handles loan servicing under contract with the lender or the investor who owns the loan.

Loan to Value (LTV) Ratio: a percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.

Lock-In: since interest rates can change frequently, many lenders offer an interest rate lock-in that guarantees a specific interest rate if the loan is closed within a specific time.

Lock-in Period: the length of time that the lender has guaranteed a specific interest rate to a borrower.

Loss Mitigation: a process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan

Mandatory Delivery Commitment: an agreement that a lender will deliver loans or securities by a certain date at agreed-upon terms.

Margin: the number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Market Value: the amount a willing buyer would pay a willing seller for a home. An appraised value is an estimate of the current fair market value.

Maturity: the date when the principal balance of a loan becomes due and payable.

Median Price: the price of the house that falls in the middle of the total number of homes for sale in that area.

Medium Term Notes: unsecured general obligations of Fannie Mae with maturities of one day or more and with principal and interest payable in U.S. dollars.

Merged Credit Report: raw data pulled from two or more of the major credit-reporting firms.

Mitigation: term usually used to refer to various changes or improvements made in a home; for instance, to reduce the average level of radon.

Modification: when a lender agrees to modify the terms of a mortgage without refinancing the loan.

Mortgage: a lien on the property that secures the Promise to repay a loan. A security agreement between the lender and the buyer in which the property is collateral for the loan. The mortgage gives the lender the right to collect payment on the loan and to foreclose if the loan obligations are not met.

Mortgage Acceleration Clause: a clause allowing a lender, under certain circumstances, demand the entire balance of a loan is repaid in a lump sum. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or the borrower defaults on a scheduled payment.

Mortgage-Backed Security (MBS): a Fannie Mae security that represents an undivided interest in a group of mortgages. Principal and interest payments from the individual mortgage loans are grouped and paid out to the MBS holders.

Mortgage Banker: a company that originates loans and resells them to secondary mortgage lenders like Fannie Mae or Freddie Mac.

Mortgage Broker: a firm that originates and processes loans for a number of lenders.

Mortgage Life and Disability Insurance: term life insurance bought by borrowers to pay off a mortgage in the event of death or make monthly payments in the case of disability. The amount of coverage decreases as the principal balance declines. There are many different terms of coverage determining amounts of payments and when payments begin and end.

Mortgage Insurance: a policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price. Insurance purchased by the buyer to protect the lender in the event of default. Typically purchased for loans with less than 20 percent down payment. The cost of mortgage insurance is usually added to the monthly payment. Mortgage insurance is maintained on conventional loans until the outstanding amount of the loan is less than 80 percent of the value of the house or for a set period of time (7 years is common). Mortgage insurance also is available through a government agency, such as the Federal Housing Administration (FHA) or through companies (Private Mortgage Insurance or PMI).

Mortgage Insurance Premium (MIP): a monthly payment -usually part of the mortgage payment - paid by a borrower for mortgage insurance.

Mortgage Interest Deduction: the interest cost of a mortgage, which is a tax - deductible expense. The interest reduces the taxable income of taxpayers.

Mortgage Modification: a loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments.

Mortgage Note: a legal document obligating a borrower to repay a loan at a stated interest rate during a specified period; the agreement is secured by a mortgage that is recorded in the public records along with the deed.

Mortgage Qualifying Ratio: Used to calculate the maximum amount of funds that an individual traditionally may be able to afford. A typical mortgage qualifying ratio is 28: 36.

Mortgage Score: a score based on a combination of information about the borrower that is obtained from the loan application, the credit report, and property value information. The score is a comprehensive analysis of the borrower's ability to repay a mortgage loan and manage credit.

Mortgagee: the lender in a mortgage agreement. Mortgagor - The borrower in a mortgage agreement.

Mortgagor: the borrower in a mortgage agreement

Multifamily Housing: a building with more than four residential rental units.

Multiple Listing Service (MLS): within the Metro Columbus area, Realtors submit listings and agree to attempt to sell all properties in the MLS. The MLS is a service of the local Columbus Board of Realtors®. The local MLS has a protocol for updating listings and sharing commissions. The MLS offers the advantage of more timely information, availability, and access to houses and other types of property on the market.

National Credit Repositories: currently, there are three companies that maintain national credit - reporting databases. These are Equifax, Experian, and Trans Union, referred to as Credit Bureaus.

Negative Amortization: amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost that isn't covered is added to the unpaid principal balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments not high enough to cover the interest due.

Net Income: Your take-home pay, the amount of money that you receive in your paycheck after taxes and deductions.

No Cash Out Refinance: a refinance of an existing loan only for the amount remaining on the mortgage. The borrower does not get any cash against the equity of the home. Also called a "rate and term refinance."

No Cost Loan: there are many variations of a no cost loan. Generally, it is a loan that does not charge for items such as title insurance, escrow fees, settlement fees, appraisal, recording fees or notary fees. It may also offer no points. This lessens the need for upfront cash during the buying process however no cost loans have a higher interest rate.

Nonperforming Asset: an asset such as a mortgage that is not currently accruing interest or which interest is not being paid.

Note: a legal document obligating a borrower to repay a mortgage loan at a stated interest rate over a specified period of time.

Note Rate: the interest rate stated on a mortgage note.

Notice of Default: a formal written notice to a borrower that there is a default on a loan and that legal action is possible.

Notional Principal Amount: the proposed amount which interest rate swap payments are based but generally not paid or received by either party.

Non-Conforming loan: is a loan that exceeds Fannie Mae's and Freddie Mac's loan limits. Freddie Mac and Fannie Mae loans are referred to as conforming loans.

Notary Public: a person who serves as a public official and certifies the authenticity of required signatures on a document by signing and stamping the document.

Offer: indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.

Original Principal Balance: the total principal owed on a mortgage prior to any payments being made.

Origination: the process of preparing, submitting, and evaluating a loan application; generally includes a credit check, verification of employment, and a property appraisal.

Origination Fee: the charge for originating a loan; is usually calculated in the form of points and paid at closing. One point equals one percent of the loan amount. On a conventional loan, the loan origination fee is the number of points a borrower pays.

Owner Financing: a home purchase where the seller provides all or part of the financing, acting as a lender.

Ownership: ownership is documented by the deed to a property. The type or form of ownership is important if there is a change in the status of the owners or if the property changes ownership.

Owner's Policy: the insurance policy that protects the buyer from title defects.

PITI: Principal, Interest, Taxes, and Insurance: the four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.

PITI Reserves: a cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months.

PMI: Private Mortgage Insurance; privately-owned companies that offer standard and special affordable mortgage insurance programs for qualified borrowers with down payments of less than 20% of a purchase price.

Partial Claim: a loss mitigation option offered by the FHA that allows a borrower, with help from a lender, to get an interest-free loan from HUD to bring their mortgage payments up to date.

Partial Payment: a payment that is less than the total amount owed on a monthly mortgage payment. Normally, lenders do not accept partial payments. The lender may make exceptions during times of difficulty. Contact your lender prior to the due date if a partial payment is needed.

Payment Cap: a limit on how much an ARM's payment may increase, regardless of how much the interest rate increases.

Payment Change Date: the date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.

Payment Due Date: Contract language specifying when payments are due on money borrowed. The due date is always indicated and means that the payment must be received on or before the specified date. Grace periods prior to assessing a late fee or additional interest do not eliminate the responsibility of making payments on time.

Perils: for homeowner's insurance, an event that can damage the property. Homeowner's insurance may cover the property for a wide variety of perils caused by accidents, nature, or people.

Personal Property: any property that is not real property or attached to real property. For example furniture is not attached however a new light fixture would be considered attached and part of the real property.

Planned Unit Development (PUD): a development that is planned, and constructed as one entity. Generally, there are common features in the homes or lots governed by covenants attached to the deed. Most planned developments have common land and facilities owned and managed by the owner's or neighborhood association. Homeowners usually are required to participate in the association via a payment of annual dues.

Points: a point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $95,000, one point means you pay $950 to the lender. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages in order to increase the yield on the mortgage and to cover loan closing costs. These points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them.

Power of Attorney: a legal document that authorizes another person to act on your behalf. A power of attorney can grant complete authority or can be limited to certain acts or certain periods of time or both.

Pre-Approval: a lender commits to lend to a potential borrower a fixed loan amount based on a completed loan application, credit reports, debt, savings and has been reviewed by an underwriter. The commitment remains as long as the borrower still meets the qualification requirements at the time of purchase. This does not guaranty a loan until the property has passed inspections underwriting guidelines.

Predatory Lending: abusive lending practices that include a mortgage loan to someone who does not have the ability to repay. It also pertains to repeated refinancing of a loan charging high interest and fees each time.

Predictive Variables: The variables that are part of the formula comprising elements of a credit-scoring model. These variables are used to predict a borrower's future credit performance.

Preferred Stock: stock that takes priority over common stock with regard to dividends and liquidation rights. Preferred stockholders typically have no voting rights.

Pre-foreclosure Sale: a procedure in which the borrower is allowed to sell a property for an amount less than what is owed on it to avoid a foreclosure. This sale fully satisfies the borrower's debt.

Prepayment: any amount paid to reduce the principal balance of a loan before the due date or payment in full of a mortgage. This can occur with the sale of the property, the pay off the loan in full, or a foreclosure. In each case, full payment occurs before the loan has been fully amortized.

Prepayment Penalty: a provision in some loans that charge a fee to a borrower who pays off a loan before it is due.

Pre-Foreclosure sale: allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.

Pre-Qualify: a lender informally determines the maximum amount an individual is eligible to borrow. This is not a guaranty of a loan.

Premium: an amount paid on a regular schedule by a policyholder that maintains insurance coverage.

Prepayment: payment of the mortgage loan before the scheduled due date; may be Subject to a prepayment penalty.

Prepayment Penalty: a fee charged to a homeowner who pays one or more monthly payments before the due date. It can also apply to principal reduction payments.

Prepayment Penalty Mortgage (PPM): a type of mortgage that requires the borrower to pay a penalty for prepayment, partial payment of principal or for repaying the entire loan within a certain time period. A partial payment is generally defined as an amount exceeding 20% of the original principal balance.

Price Range: the high and low amount a buyer is willing to pay for a home.

Prime Rate: the interest rate that banks charge to preferred customers. Changes in the prime rate are publicized in the business media. Prime rate can be used as the basis for adjustable rate mortgages (ARMs) or home equity lines of credit. The prime rate also affects the current interest rates being offered at a particular point in time on fixed mortgages. Changes in the prime rate do not affect the interest on a fixed mortgage.

Principal: the amount of money borrowed to buy a house or the amount of the loan that has not been paid back to the lender. This does not include the interest paid to borrow that money. The principal balance is the amount owed on a loan at any given time. It is the original loan amount minus the total repayments of principal made.

Principal, Interest, Taxes, and Insurance (PITI): the four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.

Private Mortgage Insurance (PMI): insurance purchased by a buyer to protect the lender in the event of default. The cost of mortgage insurance is usually added to the monthly payment. Mortgage insurance is generally maintained until over 20 Percent of the outstanding amount of the loan is paid or for a set period of time, seven years is normal. Mortgage insurance may be available through a government agency, such as the Federal Housing Administration (FHA) or the Veterans Administration (VA), or through private mortgage insurance companies (PMI).

Promissory Note: a written promise to repay a specified amount over a specified period of time.

Property (Fixture and Non-Fixture): in a real estate contract, the property is the land within the legally described boundaries and all permanent structures and fixtures. Ownership of the property confers the legal right to use the property as allowed within the law and within the restrictions of zoning or easements. Fixture property refers to those items permanently attached to the structure, such as carpeting or a ceiling fan, which transfers with the property.

Property Tax: a tax charged by local government and used to fund municipal services such as schools, police, or street maintenance. The amount of property tax is determined locally by a formula, usually based on a percent per $1,000 of assessed value of the property.

Property Tax Deduction: the U.S. tax code allows homeowners to deduct the amount they have paid in property taxes from there total income.

Public Record Information: Court records of events that are a matter of public interest such as credit, bankruptcy, foreclosure and tax liens. The presence of public record information on a credit report is regarded negatively by creditors.

Punch List: a list of items that have not been completed at the time of the final walk through of a newly constructed home.

Purchase Offer: A detailed, written document that makes an offer to purchase a property, and that may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the purchase offer becomes a legally binding contract, sometimes called the Sales Contract.

Qualifying Ratios: guidelines utilized by lenders to determine how much money a homebuyer is qualified to borrow. Lending guidelines typically include a maximum housing expense to income ratio and a maximum monthly expense to income ratio.

Quitclaim Deed: a deed transferring ownership of a property but does not make any guarantee of clear title.

RESPA: Real Estate Settlement Procedures Act; a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships

Radon: a radioactive gas found in some homes that, if occurring in strong enough concentrations, can cause health problems.

Rate Cap: a limit on an ARM on how much the interest rate or mortgage payment may change. Rate caps limit how much the interest rates can rise or fall on the adjustment dates and over the life of the loan.

Rate Lock: a commitment by a lender to a borrower guaranteeing a specific interest rate over a period of time at a set cost.

Real Estate Agent: an individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.

Real Estate Mortgage Investment Conduit (REMIC): a security representing an interest in a trust having multiple classes of securities. The securities of each class entitle investors to cash payments structured differently from the payments on the underlying mortgages.

Real Estate Property Tax Deduction: a tax deductible expense reducing a taxpayer's taxable income.

Real Estate Settlement Procedures Act (RESPA): a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships

Real Property: land, including all the natural resources and permanent buildings on it.

REALTOR®: a real estate agent or broker who is a member of the NATIONAL ASSOCIATION OF REALTORS, and its local and state associations.
Recorder: the public official who keeps records of transactions concerning real property. Sometimes known as a "Registrar of Deeds" or "County Clerk."

Recording: the recording in a registrar's office of an executed legal document. These include deeds, mortgages, satisfaction of a mortgage, or an extension of a mortgage making it a part of the public record.

Recording Fees: charges for recording a deed with the appropriate government agency.

Refinancing: paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).

Rehabilitation Mortgage: a mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some rehabilitation mortgages - like the FHA's 203(k) - allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.

Reinstatement Period: a phase of the foreclosure process where the homeowner has an opportunity to stop the foreclosure by paying money that is owed to the lender.

Remaining Balance: the amount of principal that has not yet been repaid.

Remaining Term: the original amortization term minus the number of payments that have been applied.

Repayment plan: an agreement between a lender and a delinquent borrower where the borrower agrees to make additional payments to pay down past due amounts while making regularly scheduled payments.

Return On Average Common Equity: net income available to common stockholders, as a percentage of average common stockholder equity.

Reverse Mortgage (HECM): the reverse mortgage is used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. A lending institution such as a mortgage lender, bank, credit union or savings and loan association funds the FHA insured loan, commonly known as HECM.

Right of First Refusal: a provision in an agreement that requires the owner of a property to give one party an opportunity to purchase or lease a property before it is offered for sale or lease to others.

Risk Based Capital: an amount of capital needed to offset losses during a ten-year period with adverse circumstances.

Risk Based Pricing: Fee structure used by creditors based on risks of granting credit to a borrower with a poor credit history.

Risk Scoring: an automated way to analyze a credit report verses a manual review. It takes into account late payments, outstanding debt, credit experience, and number of inquiries in an unbiased manner.

Sale Leaseback: when a seller deeds property to a buyer for a payment, and the buyer simultaneously leases the property back to the seller.

Second Mortgage: an additional mortgage on property. In case of a default the first mortgage must be paid before the second mortgage. Second loans are more risky for the lender and usually carry a higher interest rate.

Secondary Mortgage Market: the buying and selling of mortgage loans. Investors purchase residential mortgages originated by lenders, which in turn provides the lenders with capital for additional lending.

Secured Loan: a loan backed by collateral such as property.

Security: the property that will be pledged as collateral for a loan.

Seller Take Back: an agreement where the owner of a property provides second mortgage financing. These are often combined with an assumed mortgage instead of a portion of the seller's equity.

Serious Delinquency: a mortgage that is 90 days or more past due.

Servicer: a business that collects mortgage payments from borrowers and manages the borrower's escrow accounts.

Servicing: the collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

Setback: the distance between a property line and the area where building can take place. Setbacks are used to assure space between buildings and from roads for a many of purposes including drainage and utilities.

Settlement: another name for closing.

Settlement Statement: a document required by the Real Estate Settlement Procedures Act (RESPA). It is an itemized statement of services and charges relating to the closing of a property transfer. The buyer has the right to examine the settlement statement 1 day before the closing. This is called the HUD 1 Settlement Statement.

Special Forbearance: a loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

Stockholders' Equity: the sum of proceeds from the issuance of stock and retained earnings less amounts paid to repurchase common shares.

Stripped MBS (SMBS): securities created by "stripping" or separating the principal and interest payments from the underlying pool of mortgages into two classes of securities, with each receiving a different proportion of the principal and interest payments.

Sub-Prime Loan: "B" Loan or "B" paper with FICO scores from 620 - 659. "C" Loan or "C" Paper with FICO scores typically from 580 to 619. An industry term to used to describe loans with less stringent lending and underwriting terms and conditions. Due to the higher risk, sub-prime loans charge higher interest rates and fees.

Subordinate: to place in a rank of lesser importance or to make one claim secondary to another.

Survey: a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc. Surveys are conducted by licensed surveyors and are normally required by the lender in order to confirm that the property boundaries and features such as buildings, and easements are correctly described in the legal description of the property.

Sweat Equity: using labor to build or improve a property as part of the down payment

Third Party Origination: a process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.

Terms: The period of time and the interest rate agreed upon by the lender and the borrower to repay a loan.

Title: a legal document establishing the right of ownership and is recorded to make it part of the public record. Also known as a Deed.

Title 1: an FHA-insured loan that allows a borrower to make non-luxury improvements (like renovations or repairs) to their home; Title I loans less than $7,500 don't require a property lien.

Title Company: a company that specializes in examining and insuring titles to real estate.

Title Defect: an outstanding claim on a property that limits the ability to sell the property. Also referred to as a cloud on the title.

Title Insurance: insurance that protects the lender against any claims that arise from arguments about ownership of the property; also available for homebuyers. An insurance policy guaranteeing the accuracy of a title search protecting against errors. Most lenders require the buyer to purchase title insurance protecting the lender against loss in the event of a title defect. This charge is included in the closing costs. A policy that protects the buyer from title defects is known as an owner's policy and requires an additional charge.

Title Search: a check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.

Transfer Agent: a bank or trust company charged with keeping a record of a company's stockholders and canceling and issuing certificates as shares are bought and sold.

Transfer of Ownership: any means by which ownership of a property changes hands. These include purchase of a property, assumption of mortgage debt, exchange of possession of a property via a land sales contract or any other land trust device.

Transfer Taxes: State and local taxes charged for the transfer of real estate. Usually equal to a percentage of the sales price.

Treasury Index: can be used as the basis for adjustable rate mortgages (ARMs) It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities.

Truth-in-Lending: a federal law obligating a lender to give full written disclosure of all fees, terms, and conditions associated with the loan initial period and then adjusts to another rate that lasts for the term of the loan.

Two Step Mortgage: an adjustable-rate mortgage (ARM) that has one interest rate for the first five to seven years of its term and a different interest rate for the remainder of the term.

Trustee: a person who holds or controls property for the benefit of another.

Underwriting: the process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower's credit history and a judgment of the property value.

Up Front Charges: the fees charged to homeowners by the lender at the time of closing a mortgage loan. This includes points, broker's fees, insurance, and other charges.

VA (Department of Veterans Affairs): a federal agency, which guarantees loans made to veterans; similar to mortgage insurance, a loan guarantee protects lenders against loss that may result from a borrower default.

VA Mortgage: a mortgage guaranteed by the Department of Veterans Affairs (VA).

Variable Expenses: Costs or payments that may vary from month to month, for example, gasoline or food.

Variance: a special exemption of a zoning law to allow the property to be used in a manner different from an existing law.

Vested: a point in time when you may withdraw funds from an investment account, such as a retirement account, without penalty.

Walk Through: the final inspection of a property being sold by the buyer to confirm that any contingencies specified in the purchase agreement such as repairs have been completed, fixture and non-fixture property is in place and confirm the electrical, mechanical, and plumbing systems are in working order.

Warranty Deed: a legal document that includes the guarantee the seller is the true owner of the property, has the right to sell the property and there are no claims against the property.

Zoning: local laws established to control the uses of land within a particular area. Zoning laws are used to separate residential land from areas of non-residential use, such as industry or businesses. Zoning ordinances include many provisions governing such things as type of structure, setbacks, lot size, and uses of a building. >

###

This weblog is sponsored by Somerset Mortgage Lenders.

"We´re Finding People with Cutting-Edge Ideas"

2009-11-20T16:25:24.635-05:00

"Twitter, Facebook and our blog have changed the way we do business," said Robert Haufler, director of marketing for Somerset Investors Corp., (www.somersetmortgagelenders.com) a mortgage-banking firm in New York, New Jersey and Pennsylvania. "People can get mortgage rates on a daily basis. We talk about new programs or updates on existing programs. Cutting-edge people come to us, and they´re the ones with good ideas." The audience is a combination of homeowners and realtors.

In recent months Twitter and video blogs and posts have produced better results than Facebook, Robert said. As a result, Somerset has shifted its emphasis accordingly.

"Using social media has moved us up in the search engines and gives us a better page rank," he added. "Every tweet or posting gives us more exposure. We were spending $20,000 a month on pay-per-click advertising. We recently cut this in half because of the exposure we are getting on youtube, MySpace, Twitter and Facebook.

"When we do press releases, we tweet about them. About six publications have done stories on our use of social media. That, in turn, increases our page rankings. When we tweet about the stories, we get even more exposure.

"For example," Robert said, "go to Google and type in ´divorce buyout.´ The first organic (nonpaid) listing is ours." (Editor´s note: Robert made this comment several weeks ago; Somerset still came up at the top of the page when we repeated the search a few days ago.)

Somerset has two employees devoted exclusively to social media at an annual cost of about $100,000. One has a public relations background and previously worked with Internet media in the medical field. The other was a nightclub promoter.

"We moved to social media because we realized the world was changing," Robert added. "Everybody is busy. People don´t watch much television and they fast forward through the commercials. We weren´t getting the responses we used to. But when people type ´divorce buyout´ or ´mortgage rates´ into a computer, you know they want to hear your message."

As a result of these efforts, page hits have increased 148 percent since July.

Robert´s wife, an assistant to a member of the $1 million life insurance roundtable, has started moving away from ads in smaller, local newspapers to Twitter and Facebook.

In addition to the "Big Three" social media -- Facebook, LinkedIn and Twitter, Somerset uses AOL´s BBO, Google´s orkut, Digg, Deli.ci.ious and Yahoo! Buzz. Somerset submits information to more than 1,200 Web sites, working with 50 to 100 of them each day.

Robert finds LinkedIn to be the most useful for researching business contacts.

This weblog is sponsored by Somerset Mortgage Lenders.

Somerset Mortgage Lenders Announcement on FHA Loans and HUD

2009-11-13T14:31:40.947-05:00

FOR IMMEDIATE RELEASE: 11/13/2009

Somerset Mortgage Lenders Announcement on FHA Loans and HUD.

Melville, New York – There seems to be a lot of propaganda on the internet about Somerset Mortgage Lenders. There are talks on blog websites such as http://forum.ml-implode.com, by uninformed people disseminating information with no discernible source.

You would be better off quoting historical facts on FHA loans and HUD auctions such as the following:

Facts:

FHA loan is a federal mortgage insurance program administered by the Federal Housing Administration. The loan may be issued by a HUD approved FHA lender.

FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. Somerset offers free quotes online and over the phone: Visit http://www.somersetmortgagelenders.com for contact information.

History:

The FHA does not make loans. As in the Veterans Administration's VA loan program, the applicant for the loan must make an application with an approved lender. Somerset Has been an FHA approved lending institution since 1979.

The borrower, who pays a monthly mortgage insurance premium of one half of 1 percent on declining balances for the lender's protection, receives two benefits: a careful appraisal by an FHA approved appraiser and a lower interest rate on the mortgage than the lender might have offered without the protection.

Please also catch up on some further reading about:

On March 6, 2008, the "FHA Forward" program was initiated. This is the part of the stimulus package that President Bush had in place to raise the loan limits for FHA.

How to obtain an FHA LOAN:

FHA does not make loans. Rather, it insures loans made by private lenders such as Somerset Mortgage Lenders. Somerset Mortgage Lenders has been in business since 1979, has a flawless BBB record.

The first step in obtaining an FHA loan is to contact several lenders and ask them if they are approved to originate FHA loans. As each lender sets its own rates and terms, comparison shopping is important in this market.

Second, the potential lender assesses the prospective home buyer for risk. Based on monthly income and expenses, which is one risk metric considered by the lender. The analysis of one's debt to income ratio enables the buyer to know what type of home can be afforded. Other factors, e.g. payment history on other debts, are considered and used to make decisions regarding eligibility and terms for a loan.

FHA's mortgage insurance programs help low and moderate-income families become homeowners by lowering some of the costs of their mortgage loans. FHA mortgage insurance also encourages lenders to make loans to otherwise credit-worthy borrowers and projects that might not be able to meet conventional underwriting requirements, protecting the lender against loan default on mortgages for properties that meet certain minimum requirements—including manufactured homes, single, two, three & four family homes. The basic FHA mortgage insurance program is Mortgage Insurance for One - to Four - Family Homes.

FHA allows first time homebuyers to put down as little as 3.5% and receive up to 6% contribution from the seller towards closing costs. If little or no credit exists for the applicants, the FHA will allow a blood relative, such as Mom or Dad, to co-sign for the loan without requiring them to reside in home with first time homebuyer. This is called a Non-Owner-Occupied Co-Borrower.

The above is for your educational needs and a simple history lesson for those who are misinformed about the mortgage industry. Somerset Mortgage Lenders is here helping many people in this industry become home owners while also helping those get their lives on track. We would love to hear from you and if needed, help you in the future!

Somerset Mortgage Lenders strives to meet demands in today’s Mortgage Industry by establishing a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party.

###

This weblog is sponsored by Somerset Mortgage Lenders.

Somerset Mortgage Lenders adds Video on YouTube

2009-10-22T17:00:36.014-04:00

Somerset Mortgage is taking the lending industry by storm with their Internet marketing division. Somerset has increase there page view by 126% over the last 3 months due to this change in the companies way to market. "Robb Haufler" Director of Marketing has his team upload content to top bookmarking sites as well as all the social media sites. We currently are following over 13,000 people on twitter and just on google alone we have over 8 million back links " Results 1 - 10 of about 8,220,000 for links: www.somersetmortgagelenders.com" if you are looking for a mortgage company to follow in the social media forums to learn and be educated as well as gettign a mortgage done when needed then Somerset Mortgage is the Company to watch and follow...

Somerset has been noticed click on these links to view our success...

http://www.digitalmediabuzz.com/2009/10/successful-twitter-campaigns

credit and loan Twitter Tweets about Mortgage as of October 01, 2009
RefinanceNews: refinance : Somerset Mortgage Lenders Blog - Second Mortgage Refinance - Rea... - http://bit.ly/1JKzda - feedproxy.google.com via thisne ... 2009-10-01 · Reply · eraseyourdebt: Mortgage Rates Going To Decline? ...
credit and loan - http://creditandloanonline.com/

This weblog is sponsored by Somerset Mortgage Lenders.

Somerset Mortgage Lenders Featured in Digital Media Buzz Article

2009-10-05T12:52:35.545-04:00

For Immediate Release:
Somerset Mortgage Lenders Featured in Digital Media Buzz Article - Successful Twitter Campaigns Build Brands, Bolster Profits

Melville/New York/USA

It was announced today that Somerset Mortgage Lenders is featured in the Digital Media Buzz Article "Successful Twitter Campaigns Build Brands, Bolster Profits", online now at their website digitalmediabuzz.com (http://www.digitalmediabuzz.com/2009/10/successful-twitter-campaigns/)

"We are once again humbled to be included in the conversation as a leader in the field as it pertains to using Twitter to effectively market your business" said Gregg Marcus, Executive Director, Somerset Mortgage Lenders.

Recently, an article in Computer Weekly named the Melville, Long Island (NY) Mortgage Company as the #1 bank on Twitter - their survey polled the top 10 banks actively participating in twitter and chose the winner in relation to number of followers - and since then their web traffic has increased exponentially, both on Twitter itself and on their home page located at somersetmortgagelenders.com.

Over the past few months, Somerset has also been quoted in articles written for Newsday and Long Island Business News; in relation to their forward thinking hiring procedures and to their work in the social media marketing realm.

TEXT OF THE ARTICLE:

Successful Twitter Campaigns Build Brands, Bolster Profits By John Greaves

Social networking sites are returning commerce to the days when business and personal relationships were intertwined through constant non-commercial contact. Twitter is an especially effective medium that successful companies are using to position customers and companies in the same digital media community. “We use Twitter because it helps us to humanize our brand,” says Carisa Miklusak, senior consultant for Personified, a Careerbuilder firm.

New York-based Liberty Jet Management Corporation has seen business explode in the two weeks since it began promoting charters on Twitter. “We made $7,500 in two weeks on charter flights,” says co-owner Christian Deputy. “Making $7,500 in two weeks may not be a lot of money to some, but to me making that in two weeks says we’re on to something and it’s due to Twitter.” With no ad agency or in-house marketing department, Deputy says he gets more than 30 followers daily and his clientele now includes actress Kirstie Alley and pro-golfer John Daly. Deputy posts real-time price updates and flight availability.

Other businesses value Twitter for the quick response time it allows. “We’ve been in business for 30 years,” says Robert Haufler, director of marketing for New York-based Somerset Mortgage Lenders. “We tweet stuff to real estate agents, we post up-to-the-minute interest rates, we can bring up to 10,000 hits per day to our home page based upon our SEO.”

Kogi BBQ a Korean Taco Truck business in Los Angeles, Calif., has been profiled by Bon Appetit magazine as “being true innovators as grassroots guerrilla restaurateurs.” The mobile restaurant uses Twitter to update menus with available foods and locations. Tweets back and forth between Kogi BBQ and followers include invitations to specific neighborhoods, comments on individual dishes and apologies when the food truck is falling behind.

Once companies are comfortable using Twitter as a customer service platform, the next step is often active marketing of their brand. Jones Soda’s asked individuals making road trips to send photos with the hashtag #roadtripjones to Twitter, Flickr, Facebook or YouTube. In exchange they were entered to win a chance to have their road trip photos on labels of Jones Cane Sugar bottles. The grand prize was a $500 shopping spree with Griffin Technology makers of the iTrip line of iPhone accessories, the other partner in the campaign. “Throughout the course of the campaign we conservatively estimated Jones received over 5 million impressions via Twitter alone,” says Alex Hillinger of the social networking site, Good Chemistry, who helped launch the campaign.

Well-crafted campaigns can fully engage even fringe followers into positive action. A prime example is the highly successful ad campaign by Situation Interactive Marketing for the Broadway play “Next To Normal.” Instead of constant tweets advertising the play, they had a Twitter version of the play produced. It was so successful that actor Adam Chanler-Berat, who wasn’t aware of the Twitter campaign, said in an August 2009 article, “Someone at the stage door asked me if I was Twittering while I was on stage; I guess they got a Twitter message from my character while I was actually performing.”

Opinion leaders can often give a huge boost to a campaign. According to Mike Spear, eCommerce manager of Jones Soda, “It’s very important to use opinion leaders; it really helped us get more eyeballs on what we were doing.” He should know. Hillinger says when pro skater Tony Hawk volunteered to send “signed copies of his boards to the Jones RV that was road tripping across the country, it was a primary driver.” Hawk then sent a twitpic to his 1.4 million followers that, according to Hillinger, has been viewed almost 9,000 times. Also big was the traffic related to the tweet from grand prize winner, Bryan Jones. Haufler says opinion leaders can springboard a brand into areas that might normally be closed. “If I get a person interested, many of their followers will follow me. I send a tweet, he’s going to retweet it and people will then come to our site,” he says.

Many companies including established brands are wary of social network ads backfiring. Filmmaker Robert Greenwald successfully hacked Starbuck’s Twitter ad campaign by mobilizing his followers to tweet unflattering twitpics to their promo site. Starbucks soon shut that portion of the campaign down but damage was done. The best way to counter that sort of thing is to be familiar with the medium. Most companies who are doing well on Twitter say they either hired someone who was comfortable with Twitter marketing like Next To Normal did with Situation Interactive, or partnered with them as was the case with Jones Soda and Good Chemistry. Still Liberty Jet’s Deputy and Somerset’s Haufler agree that Twitter is so user friendly that any company can venture into it as long as it is careful to concentrate on meaningful content. “We’re not posting 10 times a day, make money quick spam messages,” Haufler says. “People know we’re real.” As a result of his company’s social network approach, Haufler says Somerset Mortgage Lenders was ranked #1 banking site by Computer Weekly.

Good campaigns use Twitter to create a feeling of community and brand loyalty in the mind of consumers. “Do something more than tweeting updates about essentially news stories, do something that engages people and brings them into your world,” says Tom Lorenzo, interactive director for Situation Interactive.

No matter what the next step forward in consumer relations is, it will likely involve social networks. “You need to do things that take a risk and embrace new things to get a really great, interesting idea,” says Lorenzo, whose campaign for Next to Normal won best in show for online creativity at the Online Media, Marketing and Advertising (OMMA) awards. Interesting ideas translate into more retweeting, more followers and many more potential customers.

John Greaves works for Marietta Power as well as several online publications.

Do you tweet? Follow Somerset Mortgage Lenders on Twitter: http://twitter.com/SomersetMtg

For more information on Somerset Mortgage Lenders check out their website: http://www.somersetmortgagelenders.com

About Somerset Mortgage Lenders:
With their main offices in the heart of Long Island, located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746, Somerset Mortgage Lenders have been in the mortgage business for 30 years. In Somerset, you have a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Somerset Mortgage Lenders Best Mortgage Rates Market Update Video

2009-10-01T14:57:02.424-04:00

This weblog is sponsored by Somerset Mortgage Lenders.

Second Mortgage Refinance - Reasons For Its Popularity

2009-09-30T12:06:20.342-04:00

Are you in need or some extra money for bills or for just living a better life? A second mortgage will help you in your quest. In the case of a second mortgage, the first mortgage is repaid and is replaced by the second one. The amount of equity in the first mortgage is a deciding factor for the second mortgage.

Once you start searching for mortgages you will have many offers and all of them claiming to be the best. But in order to help you decide which one is the best for you, there are few points to be kept in mind. And since going for such a loan will add some financial burden on you, it's a big decision not to be taken lightly.

A second mortgage refinance loan is made up of two types, namely a home equity loan and a home equity line of credit. In a home equity loan you are given all the money and you are responsible of paying interest on the total amount that you have borrowed. In the case of home equity lines of credit taken as a second mortgage, you are given freedom to borrow the exact amount needed. You need to pay interest on the amount that you have used. The repayment of such a loan is also flexible. You can pay back monthly interest only or some portion of the outstanding principal along with the monthly interest.

If you compare the process of a straight refinance with getting a second mortgage, then second mortgage will be found to be an easier process. It has lesser complication and very less paperwork is needed for its approval. The time taken for its approval is also less than refinancing. But the rate of interest in mortgage refinance is lower than second mortgage.

When compared with other traditional loans, second mortgage refinance requires a very low fee. If you really search around, you may even be able to find no-fee second mortgage refinance options.

However, the tide may turn against you if you have a poor credit record. Additionally, f you have defaulted on your first mortgage you will have difficulty in finding a lender to finance your second mortgage.

When you are in need of funds or want to clear debts, second mortgage refinancing proves to serve the purpose well. There is sometimes also significant tax savings on a second mortgage. At times, a second mortgage will help you even save more money than your first mortgage did!

Article Source: Irsan Komarga

For more information on Somerset Mortgage Lenders, check out their website: http://www.somersetmortgagelenders.com

About Somerset Mortgage Lenders:
With their main offices in the heart of Long Island, located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746, Somerset Mortgage Lenders have been in the mortgage business for 30 years. In Somerset, you have a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

How Did the New Federal Bankruptcy Laws Affect Chapter 7 Bankruptcy?

2009-09-28T12:20:23.826-04:00

Chapter 7 bankruptcy is one of the mortgage debt help options that not many debtors want to opt for. However, there are many debtors that are left with no other option but to file bankruptcy. Earlier it was easy to file chapter 7 bankruptcy. With the introduction of the new federal bankruptcy laws, filing bankruptcy has become very rigid. The new federal bankruptcy laws have been introduced to curb the number of consumers filing bankruptcy.

It has also affected the manner in which you file Chapter 7 bankruptcy. Chapter 7 bankruptcy is also referred to as straight and liquidation bankruptcy. According to the new federal bankruptcy laws that were introduced on October 17th 2005, if you are planning to file bankruptcy, you have to undergo a Means test.

1. Means test
The Means test decides whether you are eligible for Chapter 7 and the test has been introduced to help consumers qualify that are in genuine need to file Chapter 7 bankruptcy. In Means test your income is compared to the median income of a similar household in the state in which you reside. If it is found that your income is higher than the state median income, you don’t qualify for Chapter 7 bankruptcy. Under such circumstances, your bankruptcy attorney may suggest you to file Chapter 13 bankruptcy in which you are required to pay back your debts as per a new repayment plan.

When you file Chapter 7 bankruptcy, your non exempt assets are liquidated or sold to pay off your creditors. A court appointed trustee takes care of the entire proceeding. There are 2 types of exemptions. They are state as well as federal exemptions. You can enjoy only one type of exemption either state or federal.

2. Credit counseling
As per the new federal bankruptcy laws, you will also be required to attend credit counseling sessions. This is applicable to both Chapter 7 as well as Chapter 13 bankruptcy. Credit counseling has to be availed by credit counselor approved by the government.

Although bankruptcy is a debt relief option many consumers despise, it is often considered as an option that gives you a fresh financial start. And there are many lenders that regard filing bankruptcy as a responsible financial behavior since they understand that the economy is still reeling under recession.

Article Source: Justine Anderson

For more information on Somerset Mortgage Lenders check out their website: http://www.somersetmortgagelenders.com

About Somerset Mortgage Lenders:
With their main offices in the heart of Long Island, located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746, Somerset Mortgage Lenders have been in the mortgage business for 30 years. In Somerset, you have a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

5 Secrets to Mortgage Success

2009-09-24T16:19:04.201-04:00

5 Secrets to Mortgage Success

There are 5 rules of thumb that all prospective buyers should take into account when shopping around for a new home. These tips can help you obtain a mortgage with less hassle and at a lower cost.

1. First, determine how much home you can afford. Based on your income and any long term debt, know the maximum payments you can be certain of making comfortably. Home loans are serious business, and buying too much home can build a mountain of debt. Make sure you can make your payments comfortably; it shouldn’t be a burden. Locate a mortgage calculator online that allows you to enter your income and it will tell you how much mortgage you can afford.

2. Then, Make a budget. Do you know where your money goes? How much is spent on unnecessary things? How much are your utility bills? If you are buying a larger home, the utilities will most likely go up. Will you be able to make payments on time and pay the larger bills? Does the home you are considering require repairs or upgrades? This tip recommends you figure these things into a budget to avoid overspending.

3. You need to gather your documentation. You will be required to show quite a bit of documentation before you mortgage is approved such as IRS returns for past years, W-2’s, proof of current salary, assets, debts, records regarding child support or alimony and the like.

4. It is imperative that you become educated about mortgage types and rates. The tip is very important. If you know the meaning of the mortgage “lingo”, the types of loans available and what the current rates are, you will be in a much better position to negotiate your home loan. Start studying your options well before you plan to buy!

5. Remember that there are options, maybe considering a shorter loan term is a better financial decision for you. The goal is to pay off the home mortgage in the least time possible while allowing enough money to live comfortably. You can save tens of thousands of dollars in interest payments!

If you follow these rules, it will help you on the road to making your mortgage experience easier and less costly. You should learn all you can before applying for a loan!

Article Source: David Chapman

For more information on Somerset Mortgage Lenders check out their website: http://www.somersetmortgagelenders.com

About Somerset Mortgage Lenders:
With their main offices in the heart of Long Island, located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746, Somerset Mortgage Lenders have been in the mortgage business for 30 years. In Somerset, you have a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Tweet All About It - Somerset Mortgage Lenders Hits 10,000 Followers on Twitter

2009-09-16T13:58:41.701-04:00

For Immediate Release:
Tweet All About It - Somerset Mortgage Lenders Hits 10,000 Followers on Twitter

Melville/New York/USA (September 16, 2009) Tweet All About It! Gregg Marcus' Somerset Mortgage Lenders has reached the 10,000 followers plateau on Twitter, the popular microblogging service; a spokesman for the direct mortgage lender said today.

Recently, an article in Computer Weekly named the Melville, Long Island (NY) Mortgage Company as the #1 bank on Twitter - their survey polled the top 10 banks actively participating in twitter and chose the winner in relation to number of followers - and since then their web traffic has increased exponentially, both on Twitter itself and on their home page located at somersetmortgagelenders.com.

"It is truly astounding how quickly these new ways of marketing can be implemented and show legitimate results" remarked Gregg Marcus, Executive Director, Somerset Mortgage Lenders. "If I wasn't a believer in viral marketing before, I am certainly a believer now" he continued.

Over the past few months, Somerset has also been quoted in articles written for Newsday and Long Island Business News; in relation to their forward thinking hiring procedures and to their work in the social media marketing realm.

Do you tweet? Follow Somerset Mortgage Lenders on Twitter: http://twitter.com/SomersetMtg

For more information on Somerset Mortgage Lenders check out their website: http://www.somersetmortgagelenders.com

About Somerset Mortgage Lenders:
With their main offices in the heart of Long Island, located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746, Somerset Mortgage Lenders have been in the mortgage business for 30 years. In Somerset, you have a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Refinancing Your Mortgage - Is It The Right Choice For You?

2009-09-14T12:45:46.404-04:00

Mortgage refinancing is an option for many homebuyers who are paying interest rates 2-3% or higher than what they can find today, or who need additional cash. Were you a first time homebuyer or you had poor credit the last time you obtained a loan? Now you are on your feet and make a salary that could help you receive the best interest rates. Possibly you are looking to refinance your mortgage so you can free some funds for a new car or for educational purposes. There are many options available when you refinance.

Before you decide if refinancing is right for you, look at your current financial situation. Do you have an adjustable rate loan or a fixed rate loan? How long do you plan to be in your home after you obtain your new mortgage? What is your ultimate goal? Most people want to refinance so they can access more money now. Refinancing is a great solution, but is a refinance of your loan the right solution for you?

The first step is making contact with you lender, and be aware how much your monthly payment is now. It is also helpful to find out how much you have paid of your mortgage towards principal. Since you will refinance the amount left on the mortgage principal, and not refinance the original mortgage amount, it is really important to know how much principal is left. If you plan to stay in your home for a length of time and still have a sizeable principal left on your loan, then a mortgage refinance may be a good option for you if interest rates are lower than when you obtained your last loan.

Just as with most conventional loans, refinancing offers similar options of adjustable and fixed rate mortgages and anywhere from 10-40 year loans. Be sure to review with your mortgage lender the reasons you are interested in refinancing; do you need to refinance to obtain cash for home improvements or for a new car purchase? These are important factors to make your lender aware of as you are deciding how to refinance your mortgage.

Another factor that determines whether borrowers refinance is interest rates. Current mortgage interest rates can rise and this often scares refinance borrowers who have ARMs because they are afraid the adjustable rates will rise after they refinance. It is difficult to assess what will happen to the adjustable refinance mortgage interest rates over the next few years. If you refinance into a fixed rate mortgage during a high interest rate period, then when interest rates go back down, you are stuck with a high fixed rate mortgage and another decision about whether or not to refinance again. Of course the only sure-fire way of knowing if you should apply for a refinancing is to assess your reasons for the refinance and how it will affect you in the future.

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Debt Relief Help - Get Your Share of Government Money

2009-09-11T12:28:08.184-04:00

With the economy the way it is right now, it's hard to feel like you can stay on top of things. You worry if you can pay your credit card bills. You fret about the possibility of losing your job. Maybe you have to cut back hours at work or choose between benefits.

If you do lose your job and are fortunate enough to get another, that one may not give you health insurance or vacation pay. Your stress is over the top.

At a certain point, the worry turns into real concern as you realize that you may lose your home or your retirement money. Before considering bankruptcy
, you want to investigate the money the federal government has set aside for relieving people who have severe debt. There are programs in place for you, and there's money set aside. A lot of this money, however, is never claimed because people like you don't know it's there or think that it's not there for them.

If you're over the age of 18, all you have to do at first is make an online search of government grants for debt relief. When you get that list, click on to a few of the sites. Look carefully at the grants that are available. Hopefully, at least one or two of them will fit the description of someone like yourself, for you do have to meet some qualifications in order to apply.

Choose the ones that best suit your needs as well as your qualifications, and download the forms that you'll have to use. Fill them out, send them in, and wait for the review boards of the sponsoring agencies to get back to you with an answer and perhaps eventually a check.

There are experts in the field who can help you to search for and apply to those grants that will be best matched to your situation. It's a reliable business that wants to help you get started on your road to financial liquidity. Once you get grant money, you can pay down your debts and begin building up your credit history again.

It will be such a relief to you when you find that you've gotten your debt down to manageable size or eradicated it entirely. You can then continue your journey to financial success without these huge burdens weighing you down.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Somerset Mortgage Lenders Featured in Long Island Business News Article

2009-09-01T16:15:34.762-04:00

For Immediate Release:
Somerset Mortgage Lenders Featured in Long Island Business News Article - Banks large and not so small turn a-Twitter

Melville/New York/USA (August 31, 2009) Robert Haufler, Director of Marketing for Somerset Mortgage Lenders, was interviewed recently by Long Island Business News writer Laura Glasser for her article "Banks large and not so small turn a-Twitter" which was published on Friday August 28th, 2009.

Here is the link and text from the article, courtesy of LIBN and Laura Glasser:
http://libn.com/blog/2009/08/28/banks-large-and-not-so-small-turn-a-twitter/

:Banks large and not so small turn a-Twitter:
by Laura Glasser

Published: August 28, 2009
Tags: banks, social media, Twitter

The finance world is jumping on one of the biggest trends the Internet has ever seen: Twitter.

Used for a range of functions from marketing to customer education, big banks such as Wells Fargo and Bank of America are actively using the micro-blogging sensation to "tweet” their finance news and respond to customers’ questions, or even explicit rants, about their institutions.

"I think it’s a great idea,” said Carmen Effron, president of Connecticut-based bank consulting firm CF Effron and Co. "Say you have an interest rate that you just dropped .25 percent; you want to get that out there and this is the best way.”

She added that using social networking sites such as Twitter, which allows users to post a message up to 140 characters long, is a good way for banks to attract the younger, tech-savvy crowd and secure them for future business.

Wells Fargo, Wachovia and Bank of America have employees dedicated to managing their Twitter feeds and responding quickly to customers who post anything negative about the banks.

In the finance world, early adopters of Twitter have the advantage of little competition in the area, said Rob Haufler, director of marketing at Somerset Mortgage Bankers in Melville.

Of all financial companies on Twitter nationwide, Somerset has the largest number of followers, with 9,370, according to information technology news site ComputerWeekly.com.

"My opinion is we’re in the bottom of the first inning; we have a whole game left of this,” Haufler said. "I see social networking being huge.”

Aside from customer service, Haufler uses Twitter to educate consumers on anything going on in the mortgage world and to announce special promotions. For example, on its Twitter page now, Somerset is offering a coupon for a free in-home mortgage consultation.

Haufler said Twitter is important to Somerset’s overall business in the post-mortgage-meltdown world because it’s another source for tapping potential borrowers.

"A loan officer making seven loans per month used to need a certain amount of leads to get those seven loans,” he said. "Now that loan officer needs triple the amount of leads to get the same amount of loans; Twitter’s helping with that.”

Haufler said Somerset’s online traffic is up about 8 percent since he started using Twitter.

"It’s the best return on investment of any marketing we’re doing,” he added.

Long Island-based commercial banks, however, have yet to jump into the social networking fray.

That doesn’t surprise Art Loomis, president of Albany-based Northeast Capital since banks in the local region also haven’t adopted mobile banking, which was the last big technology upgrade for big banks.

"Community banks tend to be followers of technology, not leaders,” he said. "A community bank’s real niche is that customer touch, so all the Internet stuff helps the younger folks, but most of your really valuable banking customers are older.”

The customers secured through social media wouldn’t become profitable to a bank for about 10 to 15 years, and since many institutions are now short on cash because of the recession, time and resources would be better spent targeting the over 50 crowd that makes community banks the most money, Loomis said.

Effron added that social networking sites such as Twitter are not helpful to small business-centered banks, as many of the Island’s institutions are.

"You have to look at who this appeals to and it’s the younger, emerging customer,” she said. "This is not a commercial banking approach.”

###

Somerset Mortgage Lenders, with their main offices right in the heart of Long Island, have been in the mortgage business for 30 years; currently located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746. They pride themselves on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Somerset Mortgage Lenders New Web Destination Pages - Feedback?

2009-08-31T15:24:06.934-04:00

Somerset Mortgage Lenders New Web Destination Pages - Feedback?

We at Somerset Mortgage Lenders strive to give every visitor to our website the same type of personal service that we give to the families and young business people who take advantage of our in home consultations.

It is with that sort of ethos in mind that we are giving our website landing pages a new distinctive look and feel; and we are asking for your feedback in making our site the most time efficient and easiest to navigate site in the mortgage lending field, bar none.

Please take a quick look at a few of our new landing pages:

For New Home Purchases
http://www.somersetmortgagelenders.com/Purchase_Loans.html

For Reverse Borrowers
http://www.somersetmortgagelenders.com/Reverse_Mortgage.html

For Refinance Loans
http://www.somersetmortgagelenders.com/Refinance_Loans.html

For Divorce Buyouts:
http://www.somersetmortgagelenders.com/Divorce_Refinance.html

For Debt Consolidation:
http://www.somersetmortgagelenders.com/Debt_Consolidation.html

For Home Improvements:
http://www.somersetmortgagelenders.com/home_improvement_loans.html

Do you have any ideas on how we can make your mortgage shopping experience online more enjoyable? Let us know at marketing@sicloans.com

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus Blog: Home Improvement Loans

2009-08-27T15:39:10.966-04:00

Gregg Marcus Blog: Home Improvement Loans
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

United States/NY/Melville

In their own words, Somerset Mortgage Lenders and Gregg Marcus "work hard every day to try and make the experience of getting a loan as easy and enjoyable as possible".

To this end, Mr. Marcus recently discussed Somerset's home improvement loan programs with members of his ever growing staff of loan officers.

"Whether you’re adding a new bathroom or an entire floor to your home, you need money, right? Well, spending cash on home improvement is money well spent, as it increases the value of your home"; Gregg said.

He continued, "Upgrading your home in this fashion by drawing against the home's value will certainly mean a higher selling price and/or more equity to draw against in a times of need".

Research shows that there are many choices in finding the right home improvement loan including refinancing with cash-out, a home equity loan, or a home equity line of credit (HELOC); all of which are programs offered by Gregg Marcus and Somerset Mortgage Lenders.

Gregg finished the session by reminding those in attendance that "Deciding on the right loan can be a stressful process for borrowers, but it doesn’t have to be - I like to think that the loan specialists we have here at Somerset will do everything they can to help find the right loan program for our clients, by any means possible"; his infectious exuberance and passion for people in full display.

If Somerset's employees tackle their business with half of their leaders' confidence, this company will continue to thrive for years to come.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus Blog: We are searching for the best of the best in Loan officers to join our team!

2009-08-24T16:26:45.654-04:00

Gregg Marcus Blog: We are searching for the best of the best in Loan officers to join our team! Apply online here: http://bit.ly/11pDfu

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Please follow us on Twitter!

2009-08-13T12:22:13.248-04:00

Follow us on Twitter - now with 7831 followers! http://www.twitter.com/somersetmtg

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus: Free Debt-to-Income Ratio Calculator at somersetmortgagelenders.com

2009-08-10T16:35:34.872335-04:00

Gregg Marcus: Free Debt-to-Income Ratio Calculator at somersetmortgagelenders.com

Your debt-to-income ratio can be a valuable number, some say as important as your credit score. It's exactly what it sounds; the amount of debt you have as compared to your overall income.

Lenders look at this ratio when they are trying to decide whether to lend you money or extend credit. A low DTI shows you have a good balance between debt and income. As you might guess, lenders like this number to be low; generally you'll want to keep it below 36, but the lower it is, the greater the chance you will be able to get the loans or credit you seek.

Add up all of your monthly debt obligations, often called recurring debt, including your mortgage (principal, interest, taxes and insurance) and home equity loan payments, car loans, student loans, your minimum monthly payments on any credit card debt, and any other loans that you might have, and you will have your debt-to-income ratio.

###

Somerset Investors Corp. is a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus: Free Second Mortgage Rate Calculator at somersetmortgagelenders.com

2009-08-06T12:28:35.2330872-04:00

Gregg Marcus: Free Second Mortgage Rate Calculator at somersetmortgagelenders.com

If you are interested in the benefits of a second mortgage, you should use a second mortgage calculator, such as the one at http://www.somersetmortgagelenders.com/Mortgage-Calculator/SecondMortgageCalculator.aspx to see if the second mortgage rate charged is reasonable and if it will indeed save you money in the long run.

Before considering taking out a second mortgage, you should clarify the following:

1. When can the company adjust the interest on the second loan rate?

2. Are there any limits to the amount of interest on the second loan rate or payments charged?

3. How many times and at what time intervals can the company change the second mortgage rate interest?

4. How will the company determine the new rate of interest or the second loan rate?

Also, another point to consider is that second loan rates are generally higher than the first mortgage rates and the terms of the second mortgage are shorter, due to the risk of the loan. Since property prices have skyrocketed most people are going in for second mortgages with lower second mortgage rates and second loan rates.

###

Somerset Investors Corp. is a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus: Is Debt Consolidation Always a Good Option for Debt Relief?

2009-08-03T11:59:09.856-04:00

For Immediate Release:
Gregg Marcus: Is Debt Consolidation Always a Good Option for Debt Relief?

Melville/New York/USA (August 3, 2009) Debt consolidation may not always be a good debt relief option. Why? There are few reasons and these reasons are interlinked. "Your financial stability is determined by your spending habits. And unless you strike a balance between your income and your expenses, it is difficult to maintain financial equilibrium." remarked Gregg Marcus, Executive Director, Somerset Mortgage Lenders.

Undoubtedly, debt consolidation (http://www.debtconsolidationcare.com/) has helped many debtors get out of debt and it is not a very bad debt help option either. However, availing debt relief alone will not suffice; you need to change the manner in which you handle your finances.

If you have to face an unavoidable financial emergency and if you fall behind on your payments again, your lender will take away your collateral. And in most of the cases, collateral used is your house. This is true in case you are opting for a debt consolidation loan that is secured.

There is another reason why debt consolidation may not meet your requirement always. It is a well known fact that you are making payments as per a new repayment plan if you enroll for a debt consolidation program. For reasons unknown if you have to shell out cash all of a sudden, it will be in addition to what you are paying each month. This may make you fall behind on payments again.

Regarding this subject, Mr Marcus remarked "As long as you are able to stay within the boundaries of your regular expenses and making payments as per the repayment schedule, debt consolidation will work fine. The moment you have to shell out extra cash and you don’t have a financial support to back you, you may be heading for trouble again".

With the help of a debt consolidation program you can do away with debts related to credit cards, student loans, store cards, utility bills, medical bills, personal loans etc. You will not be able to wrap up your debts that include mortgage and auto loan.

"When you consolidate your debts, you pack your multiple debts into a single account that makes your debts manageable. This can be done either with the help of a debt consolidation program or a consolidation loan" said Dorothy Parker from RealEstateGuidance.org

In case you are opting for a debt consolidation loan that is a type of personal loan, you may or may not use collateral. In case you are using collateral, the interest rate attracted by the consolidation loan will be less. However, if you are not using collateral, the amount you have to shell out as interest rate is very high.

"When you hire the services of a debt consolidation company, they will talk to your creditors and convince creditors to reduce interest rates. It lowers your monthly payments considerably. A repayment plan is also worked out so that you can make payments as per the new repayment plan. The repayment plan is usually prepared taking into account your convenience in making payments", Ms. Parker said. "That could mean the difference in making the bills this month or not".

Somerset Mortgage Lenders, with their main offices right in the heart of Long Island, have been in the mortgage business for 30 years; currently located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746.

###

Somerset Investors Corp. is a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus and Somerset Mortgage Lenders Named #1 Bank on Twitter by Computer Weekly

2009-07-28T16:42:17.17-04:00

For Immediate Release:
Gregg Marcus and Somerset Mortgage Lenders Named #1 Bank on Twitter by Computer Weekly

Melville/New York/USA

It was announced today that Gregg Marcus' Somerset Mortgage Lenders were just named #1 Bank on Twitter by Computer Weekly! This article polled the top 10 banks actively participating in twitter and chose the winner in relation to number of followers on the popular social networking service.

"We are thrilled to be recognized not only as a leader in the world of direct mortgage lending, but in effectively marketing our services and products online, as well" remarked Gregg Marcus, Executive Director, Somerset Mortgage Lenders.

You can read the complete story here::
http://www.computerweekly.com/galleries/237042-10/1-Somerset-Mortgage-Lenders-has-7-700-followers-Top-10-banks-on-Twitter.htm

Alternately, read the text below (excerpt taken from the article above written by Karl Flinders at ComputerWeekly.com - follow him on Twitter at KarlFl)

Computer Weekly: Top 10 banks on Twitter

#1. Somerset Mortgage Lenders has 7,700 followers -

With almost 8,000 followers, the New York-based mortgage lender leads the popularity stakes. It uses Twitter as a financial advisor to explain financial products to customers, as well as to engage with them.

Computer Weekly verdict: Possibly too much financial advice and not enough fun. But 8,000 people can't be wrong, so it works. 5/10

To follow Somerset Mortgage Lenders on Twitter click here:

http://www.twitter.com/SomersetMtg

###

Somerset Investors Corp. is a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus: Refinance Savings Calculator

2009-07-27T16:34:56.936-04:00

Gregg Marcus from Somerset Mortgage Lenders wants to arm consumers with tools to make getting a loan an easier and more enjoyable experience. With this in mind, they have set up this very useful refinance savings calculator, available at no cost by going to http://www.somersetmortgagelenders.com/Mortgage-Calculator/MortgageRefinanceCalculator.aspx

The refinance calculator above shows you if it makes sense for you to refinance your home loan in the first place!

When making the decision regarding refinancing and using this refinance calculator, you need to consider a couple of things.

1. How long do you plan to live in the home?

2. How much will it cost you to refinance your mortgage loan?

Once you know these two things, you can determine if your accumulated monthly savings from refinancing will be enough to recoup the costs of refinancing your mortgage loan.

Keep in mind however, that this calculator will assume that you have made all of your mortgage payments on time, as scheduled.

If you have made a couple of larger than normal payments to pay-down the loan principal, or if you have made some late payments, your actual loan balance on your current mortgage loan could be different.

Also remember that this calculator only addresses the principal and interest (P&I) part of your loan, not any real estate taxes or insurance that might be part of your monthly mortgage payment.

Hope this helps!

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus: How Reverse Mortgages Work

2009-07-24T14:18:02.325-04:00

Reverse mortgages were created in order to help ease the financial burden on aging seniors. A reverse mortgage is a type of financial instrument that permits home owners over the age of 62 to gain access to the money they have accumulated as home equity.

How a reverse mortgage works is that the lender makes payments to the borrower, rather than the other way around. The amount paid out is based on a percent of the equity remaining in the home (that’s the full property value minus the amount still owed).

Seniors can use money from a reverse mortgage to fund:

1 Retirement
2 Medical costs
3 A new car
4 Home repairs
5 Renovations
6 Estate planning
7 A grandchild’s education
8 Travel and leisure

In order to get a reverse mortgage your current mortgage does not need to be completely paid off. The amount you can receive in a reverse mortgage is based on the equity in your home. As a mandatory part of the reverse mortgage process, however, your existing mortgages will be paid off. Some people simply use a reverse mortgage to get out of having to pay monthly mortgage payments, the money they receive just being a bonus.

When you receive a reverse mortgage, your home remains in your name, and you also retain total control of the property. It is also still your responsibility to maintain the house and property and pay all taxes and insurance as usual. No reverse mortgage lender can take your home away from you so long as you keep that home as your primary residence.

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus, a Discussion: Somerset Mortgage Lenders Lends a Helping Hand to Senior Borrowers

2009-07-23T09:57:29.8573972-04:00

United States/NY/Melville

In a turbulent time in the mortgage industry, Somerset Mortgage Lenders stays ahead of its competition by lending a helping hand to senior borrowers. Along with saving seniors a lot of money with a reverse mortgage, many Somerset employees have gone the extra mile to make sure they remain friends with their borrowers by offering to lend a hand with home improvements.

One example of this is when a recent customer was going to pay $450 to paint a fence on her property and her Senior Lending Specialist, Sean Miller, offered to do it for free on his day off. "It feels good to help people in their time of need, not only by creating financial freedom that will save them thousands but also to help by lending a hand in other ways", Sean stated. The borrower Inez Richardson remarked "Sean has given me my financial independence and a brighter look on the future. He has given so much for so little in return".

"You have never stood so tall until you kneel to help a senior citizen" Sean said.

Sean Miller is not the only an example of a Somerset Senior Specialist lending a helping hand. Because their product deals with people in times of need, our loan officers often encounter unfortunate situations. Another example of this is Vince Navarro, a team leader and Reverse Mortgage Specialist, recently helping a senior with no working bathroom living with basically an out-house accommodation, gain her bathroom facilities and her dignity back. "What’s great," Vince said, "is that we can remedy a situation not only for now but for the long term. Fixing the bathroom was my pleasure".

###

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus Blog: Traditional Mortgages Can Be Availed Online by Kevin Parker

2009-07-20T11:32:47.966-04:00

Gregg Marcus Blog: Traditional Mortgages Can Be Availed Online by Kevin Parker
Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Gregg Marcus and Somerset Mortgage Lenders strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have worked with Kevin Parker of MortgageFit.com to put together this article on tips for getting your mortgage online.

The mortgage market is flooded with lenders that are offering online mortgages. The mortgage market is gradually recovering at a very slow pace. The subprime mortgage crisis led to severe credit crunch. Thereafter, the lenders have become exceedingly cautious about extending fresh credit.

You can take out a mortgage in 2 ways. One way you can get a mortgage loan is by approaching the lenders personally (like Somerset Mortgage Lenders, for instance) and applying for the mortgage. The other way is to shop around for online mortgages.

These days majority of the lenders have their own websites where they furnish extensive information about the rates they offer.

Advantages of online mortgage

There are many advantages of taking out online mortgage:

1. It helps you to apply for a mortgage from the comfort of your home. There is a wide range of options you can choose from if you are looking for mortgage online. You can navigate from one website to another and get to know the different mortgage rates that are being currently offered in the mortgage market.

2. Online mortgage calculators are important tools that will enable you to calculate the amount you have to shell out every month. You can calculate the interest rate, the Annual Percentage Rate, your affordability, the size of the mortgage you can take out, whether 15-year loan term or 3-year loan term will be helpful for you etc.

3. It saves you a lot of time and energy as you get the details from the comfort of your office or home.

What you should look out for while applying for online mortgage?
Prior to providing your personal information online while taking out a mortgage, make sure the payment mode is secured.

What are your options?
You can either opt for a fixed-rate mortgage or adjustable-rate mortgage depending upon the requirement. In case you are opting for fixed-rate mortgage, you will be required to make a fixed mortgage payment throughout the term of the loan. On the other hand, if you are opting for an adjustable-rate mortgage, you have to make payments as per the prevailing mortgage rates in the market. Initially you pay lower payments but as the rates in the market escalate so do your monthly payments.

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.

Gregg Marcus: Somerset Mortgage Lenders' Mortgage Glossary

2009-07-17T17:10:39.052-04:00

Gregg Marcus: Somerset Mortgage Lenders' Mortgage Glossary
by Somerset Mortgage Lenders: "The Brains, The Courage and The Heart to Make Your Dreams Come True"
http://www.somersetmortgagelenders.com

Gregg Marcus and Somerset Mortgage Lenders strive to keep the public educated with tips meant to make getting your loan as easy and painless as possible. To this end, they have put together this comprehensive mortgage glossary.

Whether you are buying a home or refinancing, applying for a mortgage is a big step. Use our Mortgage Terms Glossary to help understand every step of the process. Our glossary of mortgage loan terminology defines a variety of terms used by loan officers and real estate professionals. Add our Mortgage Terms Glossary to your Favorites for quick look-ups throughout your mortgage application process.

See full glossary by following this link:
http://www.somersetmortgagelenders.com/Mortgage-Article/MortgageGlossary.htm

SOMERSET MORTGAGE LENDERS
Specializing in: purchases, debt consolidation, divorce buyouts, loans for home improvement, mortgages, refinancing existing loans, reverse mortgages, FHA loans & more

Get a free rate quote now at http://www.somersetmortgagelenders.com or call 1-800-675-9783 to speak to a LIVE Loan Officer.

This weblog is sponsored by Somerset Mortgage Lenders.