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

Eugene C. Kelley asked:




Between these two headlines from April 20, 2010 I could not decide which was more important, so I figured I would use them both.

The first headline is good news for Wells Fargo shareholders who, according to their press release, stand to make forty five cents per share of common stock on 21 billion in revenue. The numbers posted reflect a giant bank which is thriving. In fact, Wells Fargo is doing so well it bought another big troubled bank last year, Wachovia, a purchase helped out by a little bit of TARP money. Things are good at old Wells Fargo.

Unfortunately, this happy prosperity is not shared with many of Wells Fargo’s customers.

The second headline, which will never make the news, is one I made up. It is about a little old lady who was in my office this week. She owns a home worth about $70,000. Five years ago, she took out a loan from Wells Fargo for over $140,000. Five years ago, appraisers for banks like Wells Fargo would say anything to make sure a loan was approved and loan brokers would do anything to get the loan to closing. She was dumb to take such a large loan, and Wells Fargo was dumber to make it.

Her household income, consisting of a small pension, social security and disability for her sick husband, is about $3,100 monthly. Her mortgage payment is $1,600.00.

She is having a hard time paying such a relatively large mortgage and called Wells Fargo to see if the loan could be modified. “Sure…” the nice lady from Wells Fargo said…”All you have to do is pay off all of your credit cards.”

This poor old lady has credit card bills totaling $20,000. She and her husband used them for many years, more so after he got sick and could no longer work. They can’t pay them anymore. Collectors are calling her all day every day. Wells Fargo’s request that the cards be paid in full is nonsensical and hardly worthy of comment, aside from the fact that these large national lenders tell their worried customers things like this every single day.

How does a lawyer advise someone in her position?

Her true situation is this. She’s old enough that if she stopped paying everybody, it would take a long time for her to lose her home. The local courts are presently flooded with foreclosures, each takes a long time to process. The credit card companies will call and write her, and maybe sue in a few years, but she is underwater in every direction, and she has no assets to satisfy any judgment. The biggest price she is paying is personal. She was very distraught, having never missed timely payment of bills her whole life. I could see that the stress of her situation will simply kill her.

That’s not what I told her though.

I told her to take some time and calm down, to ignore the collection calls, to stay as current on the mortgage as she is able, and to refer any lawsuits she might get to me. Now, I could see as I spoke to her that she was dumb to take such a large loan, and Wells Fargo was dumber to make it, but who is paying a higher price, the bank making billions or the little old lady crying in my office?

Ella