Ryann Paul asked:




Many people used to call a home loan as a Mortgage. So let us see make a Comparison between mortgage and home loan

• Loan is the money which is borrowed by an individual, financial firm or the Bank to another individual or the small firm for a specific period and is due to be repaid with interest after a specific period. Home Loan is also a type of loan which is given to an individual who has to repay this amount with interest in a specific period. Most of the home loans are borrowed to an individual in the lieu of the guarantor, that individual provides to the bank. According to the international rules of banking the guarantor must be a person who is associated in some or the other way with the bank. Some banks even give the loan to a person based on the person’s (financial) reputation or the credit in the market.

• On other hand Mortgage is the security deposit which is taken from the borrower and which has the same face value as the loan which is paid to the borrower by the bank. Thus Mortgage is a type of legal document or a type of legal contract which protects the lender’s interests in the borrower’s property. For example tangible assets like the house or the car or the ornaments that posses the equivalent face-value as the amount of the loan are mortgaged. So even if the borrower fails to repay the loan after a specific period the lender could recover the loan amount selling the tangible assets of the borrower.

Thus we have seen the comparison between mortgage and home loan.

Now let us discuss about the types of Mortgage Companies which give loan to an individual as well as other firms.

Types of Mortgage Companies:

There are two types of Mortgage Companies mainly the Best Mortgage Companies and the Bad Credit Mortgage Companies.

• Best Mortgage Companies like Wells Fargo and Wachovia Mortgage companies are based in USA.

• Bad Credit Mortgage Companies like Synovus Financial and Golden West Financial Corporation which are also situated in the USA.

• Best mortgage companies are those Mortgage Companies which provide various types of loans and mortgages in the best possible way.

• Bad credit mortgage companies are those companies which give a loan to the borrower with a bad credit score (given by the credit system) against assets of the same value at high rate of interest.

We know that the rate of interest is charged on every loan amount. Loan Calculator is used to calculate this interest.

A Home Loan can be a small transaction which can consist of a less amount of money while Mortgage is an always a large transaction in which transaction amount is very high. This is the main point of comparison between mortgage and home loan.

A Home Loan is a transaction in which a friend or a relative gives money to another friend or relative with or without interest. This is not the case of Mortgage. This is an important comparison between mortgage and home loan.

Thus it is better to consult the loan consultant and take an advice from him as to which firms offer loans at the reasonable rate of interest and extended period.

Look before you leap. Think twice and act wise before applying for a home loan by mortgaging your belongings. Search for other avenues and options after making comparison between mortgage and home loan.

Marion

Kristin Abouelata – Home Loans asked:


As you’re sitting across from your mortgage lender who is going over, line by line, the charges and fees associated with your loan, he/she mentions MERS.  It’s only costing you $4.95, so you don’t pay particular attention to it.  I mean after all, $4.95 is nothing compared to the state tax stamp fee or other line items you see.  But, aren’t you curious as to exactly what MERS is?  At face value it sounds like something you should get an inoculation to avoid.  But in actuality, it’s a little system that has revolutionized the mortgage industry.

 

MERS is kind of like a microwave.  You never knew how much you depended upon it until you consider taking it away.  Seriously.  Our microwave was broken for a short period of time, and I couldn’t believe how much we used it or how much it simplified our lives.  Half the food I cooked became a real trial to prepare the old fashioned way. Not to mention heating up leftovers. Ironically, it’s a very similar situation for the mortgage industry if they had to do away with MERS all of a sudden.  It would be perplexing, annoying and time consuming.

 

MERS stands for Mortgage Electronic Registration System. If you visit the MERS website (www.mersinc.org), you can read their overview: “MERS was created by the mortgage banking industry to streamline the mortgage process by using electronic commerce to eliminate paper.  Our mission is to register every mortgage loan in the United States on the MERS (registered trademark) System.”  Nice.  Everyone likes paperless systems these days.

 

In the old days, if you sold a loan on the secondary market, you had to assign the mortgage to the new buyer.  You created a paper assignment and recorded it at the courthouse.  If there was an error on the assignment, you had to correct it (have it initialed by the appropriate parties) and re-record it.  Then you sent this original recorded document to the new buyer for them to keep.  If they in turn sold the loan, they had to prepare another assignment, record it and forward it, along with the first recorded assignment, onto the new buyer.  And so on and so forth.  Lots of paper being printed, recorded, regenerated and reconstituted.  MERS came up with a fabulous system to eliminate this nightmare.  Now, when you sign a mortgage, MERS assigns a unique identifying number to that mortgage.  The lender, upon closing, registers the loan with MERS to show it exists.  Then, any transfers can be done electronically.  The mortgage servicing and mortgagees can also be tracked electronically, which allows for title searches to be streamlined.  It’s a beautiful thing.  This system has saved a lot of time and energy for the industry.

 

However, if you were to tell a mortgage operations person that MERS was going away, and they were going back to paper assignments, it wouldn’t go over well.  They would probably be at a total loss.  Sort of like tossing someone a bag of popcorn and telling them to cook it without a microwave.



RUDY