Home Mortgage Loan Broker - Information and Advice

"Get the lowest mortgage loan rates and best home equity loans."

Mortgage Loan Broker: There are several types of mortgage brokers, but essentially they are all middlemen facilitating the placement of your loan with a lender. Click here for current rates from E-Loan, the top online mortgage loan broker.

Some common questions people have about mortgage brokers include:

• What's the difference between a mortgage broker and a mortgage banker?

• Where does the money for my mortgage come from?

• Which is the best place to get my mortgage?

Experts differ in their answers to these questions. After you read this article, you may wish to consult some of the terms in our Mortgage Terms page.

Defining Terms
Let's start with some terminology. The investor in your mortgage is the institution that supplies the funds for your loan. The originator of your mortgage is the institution that handles the loan from application through closing. The servicer of the loan handles your monthly payments and pays your insurance and taxes out of escrow.

A bank or savings and loan can be the investor, originator, and servicer. Mortgage bankers typically originate and service loans, but the funding comes from other investors, including GNMA (for FHA loans), FHLMC, and FNMA. A mortgage banker will forward your monthly payments to GNMA, FHLMC, and FNMA.

These agencies often in turn act as conduits, pooling your mortgage with similar mortgages which are sold to large banks, insurance companies, and pension funds.

Mortgage brokers typically originate loans, but servicing is performed by mortgage bankers and funding comes from investors.

Several years ago, there were very few banks or large institutions willing to act as investors in mortgages for people with bad credit. Some mortgage brokers specialized in finding investors in such mortgages.

Today, there are many more investors, including traditional banks and savings and loans, willing to invest in higher-risk mortgages. The distinction of mortgage brokers as specialists in such loans is fading.

Should you use a mortgage loan broker?
Some experts say that mortgage brokers are helpful because they have access to mortgage programs from more than one originator.

Other experts say that mortgage brokers just add another layer of fees to the process, and that their commissions can provide incentives to steer borrowers toward loans that are less than optimal.

However, regarding the issue of fees, it is important to point out that brokers often do much of the work involved in processing an application, so that their fees do not necessarily increase the total cost of originating the loan.

There is no general rule that says you always will do better with one type of lender than another.

What you should care about are costs (rate, points, fees), fit of loan program to your needs, experience, and integrity.

Regarding the latter, look for a clear explanation of when your loan will be approved and what it will cost. 

Online Mortgage Brokers

The Internet has revolutionized the mortgage lending industry. It's quite easy to search for a mortgage broker online.

An easier way to find the right loan from an online-mortgage broker is to use E-Loan. E-Loan is an online marketplace where you can get a decision on your loan application in fifteen minutes.

Click here to use E-Loan for your mortgage loan broker.
 

Related Pages

Credit History and Mortgage Approval - Your credit history affects your mortgage approval chances - Get a free credit report with credit score and qualify for a lower mortgage loan rate.

Choosing A Mortgage Lender - Facts to consider in choosing a mortgage lender - Five steps to getting the best loan by leveraging online mortgage rates.

Applying For A Mortgage - Tips on how to apply for a mortgage - What to look out for when applying for your next home mortgage loan.

Mortgage Brokers and Lenders - How mortgage brokers differ from direct lenders - Both have advantages and can save you money - Comparisons and advantages of both types of mortgage lenders.

Online Mortgage Broker - How to use an online mortgage broker to save big on your next home loan - Advice on what works and what to avoid.
 

Home Loans In The News

	Web Home-Loans-Help.com