The Internet has become a big part of most people's daily lives. Perhaps this is why online mortgages have recently gained popularity among those who are looking for a mortgage loan.
Mortgage Basics
A mortgage is the act of using property as security for debt repayment. In most cases, land and real estate is all that can be mortgaged, as opposed to property, such as ships, cars, etc. Because most people cannot afford to completely pay for land and/or real estate upfront, they choose to purchase a mortgage loan. The average person purchases at least one mortgage loan in their lifetime.
There are many different types of mortgages available. The two basic types of amortized mortgages are:
- Fixed-Rate Mortgages - The interest rate (and the monthly payment) remain the same for the life of the loan.
- Adjustable Rate Mortgages - The interest rate (and the monthly payment) is fixed for a specific period of time, but then fluctuates based on the market index.
The advantages and disadvantages of these mortgages vary, as do the terms. Some mortgages last for 30 years or more, while others require payment in as little as five years time. The type of mortgage that you choose should be based on your individual needs and your financial capabilities. If you are unable to make your mortgage loan payments, your creditor can take your house as payment. This is why it is very important that you understand the terms of your mortgage loan and your ability to repay it.
Though most mortgages are broken down into two categories: fixed-rate and adjustable-rate, the terms and conditions vary depending on the type of loan that you have. The most common mortgage loans are:
- Assumed Mortgages
- Balloon Mortgages
- Blanket Loans
- Bridge Loans
- Budget Loans
- Commercial Loans
- Deed of Trust Loans
- Equity Loans
- Hard Money Loans
- Interest Only Loans
- Negative Amortization Loans
- Piggyback Loans
- Repayment Mortgages
- Reverse Mortgages
- Seasoned Mortgages
- Term Loans
- Wraparound Mortgages
Online Mortgages
Mortgages can be obtained from a traditional lender, but they can also be obtained from an online mortgage company. Online mortgages are becoming very commonplace. Many people who are in need of a mortgage loan turn to these companies first. Online companies often provide informative details about the loan types they offer, allowing consumers to educate themselves regarding the advantages and disadvantages of each loan option.
Online mortgages also offer a high level of convenience for loan shoppers. Many companies offer instant online quotes and instant pre-approvals. Experienced mortgage experts are also available to answer any questions that online customers may have.
Online mortgages work exactly like the traditional mortgage. There is still paperwork to be filled out, credit checks, and loan approvals. You must also make regular mortgage payments just as you would with a traditional loan.
Purchasing Online Mortgages
The online lending market is extremely competitive. Online lenders are always on the lookout for new customers, so you should have no problem securing a mortgage loan with reasonable rates and fees.
When shopping for online mortgages, it is very important to take the time to shop around and make comparisons. Find a reputable lender who is willing to answer any questions that you may have. When you have agreed upon the terms and conditions of the loan, read everything over carefully. If there is anything that you do not understand, ask the lender to provide a detailed explanation.
Many traditional lenders offer online mortgages through there website. Other lenders work only in the online capacity. If you are not sure where to turn first, here is a list of some of the largest online mortgage lenders:
- QuickenLoans.com
- ELoan.com
- BankRate.com
- LendingTree.com
- GMACmortgage.com
- AmeriquestMortgage.com
- WellsFargo.com
