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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

Direct Mortgage Loans

Financial institutions that fund their own loans are known as direct mortgage lenders, as they practically are using their own deposits and resources in order to provide loans to their customers. Also, there has to be kept in mind that financial institutions are being allowed to exercise more discretion by consumer direct mortgage lending. In order to purchase a new house, to refinance an existing loan, for repairs, renovation and improvement of an existing house, borrower can successfully apply for direct mortgage loans. Pay attention to the fact that, before approving the loan, lenders will have their own terms and criteria to be fulfilled, as there has to be kept in mind that institutions providing with direct mortgage loans require the financial profile of the borrower.

An important aspect which has to be taken into consideration is being represented by the fact that there are many ways to approach the lender for a consumer direct mortgage, as borrowers can walk into the branch office directly. Also, there has to be kept in mind that borrowers can as well fill an online application at the websites of various mortgage lenders. The fact that it allows borrowers to compare the rates offered by different lenders simultaneously, is one major advantage for applying through the internet.

Pay attention to the fact that, in order to help the borrowers calculate the amount they are eligible to apply for, the monthly payments and the exact tenure, there are interactive calculators available on the internet. It is important as well to be considered that there are other options available for the borrowers who need money but they do not want to opt for refinance since it does not offer any benefits. For these people, to either go in for a second mortgage or use their equity line of credit seems to be ideal.

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