Question

I want the article on MORTGAGE for 1200 words at least... be creative contents are very important as am trying to drive mortgage ads and customer to my website

Answer 1

Mortgage Definition: A Conveyance of or lien against property, estate, certificates, deeds to get a secure the loan. In other way a mortgage is an instrument which property or real estate used for collateral, it's an agreement between borrower and lender.

The Process of Mortgage: If the buyer is not having enough cash to buy the property then the respective property borrower will mortgage the loan in terms as a interest.

In Mortgage typically loan tenure can be 5 to 50 years. Interest rates can be depending on demand and supply of the market. Interest rate also depends on default risk of the lender, if lender past track records are not good then interest percentage can be higher.

Characteristics: 1) The Instrument which are used for mortgage

2) Interest rates of the mortgage

3)Principal of the Mortgage

4)Taxes if any

5)Insurance

6) Cost of Debt

7)Floating Interest rates

Seven things to look for in a mortgage

The size of the loan

The interest rate and any associated points

The closing costs of the loan, including the lender's fees

The Annual Percentage Rate (APR)

The type of interest rate and whether it can change (is it fixed or adjustable?)

The loan term, or how long you must repay the loan

Whether the loan has other risky features, such as a pre-payment penalty, a balloon clause, an interest-only feature, or negative amortization

lenders will tell you how much you are qualified to borrow - that is, how much they are willing to lend you. Several online calculators will compare your income and debts and come up with similar answers. But how much you could borrow is very different from how much you can afford to repay without stretching your budget for other important items too thin. Lenders do not consider all your family and financial circumstances. To know how much you can afford to repay, you'll need to take a hard look at your family's income, expenses and savings priorities to see what fits comfortably within your budget.

Costs such as homeowner's insurance, property taxes, and private mortgage insurance are typically added to your monthly mortgage payment, so be sure to include these costs when calculating how much you can afford. You can get estimates from your local tax assessor, insurance agent and lender. Knowing how much you can comfortably pay each month will also help you estimate a reasonable price range for your new home.

The checklist also guides you through your monthly mortgage statement.

A mortgage statement usually comes on a monthly basis. Your statement contains the following information (as well as other information):

Customer service contact information for your mortgage service

The amount due

The due date

Your interest rate

Fees and charges

Information about any past due payment, late fees, and how much you must pay to bring the account current if you are delinquent on your loan for more than 45 days

Review your statement each time it arrives. This can help you spot problems quickly. If you don’t understand something on the statement, contact your mortgage servicer using the contact information on the statement. You can also send a WRI.

Consider setting up the automatic payment with your mortgage service or through your bank or credit union. This can help you stay on track.

What to do if you get a coupon book

Not everyone receives a periodic mortgage statement. Some people may receive a coupon book. Service usually send out coupon books in the mail once a year. Coupon books usually have payment slips (“coupons”) that you tear out and return with your payment. If you receive a coupon book, it might only include the servicer' s contact information, your account information, and the amount due. You may need to contact the servicer's to request other information, for example, an explanation of amount due or past payment information.

Some servicers may not send mortgage statements or coupon books but instead may send you an email or other type of notice telling you what to pay. If you aren’t sure, contact your mortgage servicer's.

he differences between your principal and interest payment and your total monthly payment is that your total monthly payment usually includes additional costs like homeowner’s insurance, taxes, and possibly mortgage insurance.

The principal and interest payment on a mortgage is probably the main component of your monthly mortgage payment. The principal is the amount you borrowed and must pay back, and interest is what the lender charges for lending you the money.

For most borrowers, the total monthly payment you send to your mortgage company includes other things, such as insurance and taxes that may be held in an escrow account. If you have an escrow account, you pay a set amount with every mortgage payment for these expenses. Your mortgage company typically holds the money in the escrow account until those insurance and tax bills are due, and then pays them on your behalf. If your loan requires other types of insurance like private mortgage Insurance, these premiums may also be included in your total mortgage payment as well.

Here’s how it works:

Principal + Mortgage Insurance (if applicable) + Escrow (homeowners insurance and tax) = total monthly payment

If you live in a condo, co-op, or a neighborhood with a homeowners’ association, you will likely have additional fees that are usually paid separately.

Although your principal and interest payment will generally remain the same if you make regular payments on time, your escrow payment can change. For example, if your home increases in value, your property taxes typically increase as well.

When considering a mortgage offer, make sure to look at the total monthly payment listed on the written estimates you receive. Many homebuyers make the mistake of looking at just the principal and interest payment, leading to an unpleasant surprise when they learn their total monthly payment is much higher. You can find your estimated total monthly payment on page 1 of the Loan estimate the “Projected Payments” section.

Many lenders require you to pay your taxes and insurance in advance using an escrow account, but not all do. If there’s no escrow payment listed on your Loan Estimate, these costs won’t be included in your monthly payment to your mortgage lender. Instead, you’ll have to pay property taxes directly to your state or local government and homeowners insurance directly to your insurance company. To make sure you can afford the mortgage, find out what your property tax and homeowners insurance bills will be, and calculate the total monthly payment yourself. Ask your real estate agent where to get this information.

Several things can cause your mortgage payment to change. Check your mortgage statement or contact your servicer's and ask them to explain.

There are several reasons why your monthly mortgage payment may have changed. Some examples include:

You have an ARM and the interest rate changed. Check the type of mortgage you have. Some homeowners believe that they have a fixed-rate mortgage loan, when their loan includes an adjustable-rate or some other feature that can cause their interest rate and payment to change.

You have an interest-only or pay-option loan and you are starting to pay principal. With these loans, you can postpone making principal payments for a while. That means that for a period you are only paying off the interest that’s accumulating on the amount you borrowed to pay for your home. Eventually, you have to start paying principal, or the actual amount you owe on the home, and that will make the monthly payments go up.

You have an escrow account to pay for property taxes or insurance premium and your property taxes or homeowners insurance premiums went up. Check your monthly mortgage statement. If your monthly mortgage payment includes the amount you have to pay into your escrow account, then your payment will also go up if your taxes or premiums go up. Learn more about You have a decrease in your interest rate or your escrow payments. It could also be because you stopped paying for private mortgage insurance. If you have private mortgage insurance, your payments may change once you are able to and do cancel the insurance.

You were charged new fees. Your servicer may have charged you fees that increased your monthly payment. Check your monthly mortgage statement or any correspondence you recently received from your lender or servicer.

It’s also possible that your mortgage servicer simply made a mistake. If you think your servicer made a mistake, first call your servicer to check. While on the phone, explain the situation to the servicer. Ask for a corrected statement. Also, ask for a reference number and the name of the person you are talking to, and take detailed notes on what you talked about and the date of the call, so you can keep track for your records. If your servicer doesn’t fix the problem over the phone, send a notice of error to your servicer explaining why you think it made a mistake in calculating your loan payment. Make sure you send the notice to the address your servicer uses for errors and information requests. This address should be listed on your statement or the servicer’s website – it might be different from the address where you send your payments.