| 1888 Articles Home | Finance Articles | Real Estate Articles | Real Estate RSS |  |
||
Get to know the mortgage market |
||||
|
In Maryland mortgage market, there are 2 types of markets—Primary and Secondary Market. Primary Market often referred to as the “retail” side of the business, wherein the lenders make a profit from loan processing fees, not the interest paid on the loan. |
||||||||||||
| Author: Lloyd Irvin |
|
|||||||||||
There are two categories of mortgage lenders such as— institutional and private. Institutional lenders include commercial banks, savings and loans, credit unions, mortgage banking companies, pension funds, and insurance companies. Usually these lenders make loans from the income and the credit of the borrower. The individuals or small companies that do not have insured depositors and are usually not regulated by the federal government are called Private lenders.
In Maryland mortgage market, there are 2 types of markets—Primary and Secondary Market. Primary Market often referred to as the “retail” side of the business, wherein the lenders make a profit from loan processing fees, not the interest paid on the loan. The largest buyers on the secondary market are the Federal National Mortgage Association (FNMA or “Fannie Mae”), the Government National Mortgage Association (GNMA or “Ginnie Mae”) and the Federal Home Loan Mortgage Corporation (FHLMC or “Freddie Mac”).
When you are considering investing in real estate in Maryland, do not confuse yourself by assuming that ‘mortgage companies’ are banks that lend their own money. Instead the company that you deal with may be either a mortgage banker or a mortgage broker. Do you know the difference between the mortgage broker and a mortgage banker? A mortgage broker is a middleman who does the loan shopping and analysis for the borrower and brings the lender and borrower together. Many of the lenders through which the broker finds loans do not deal directly with the public. Mortgage banker is a direct lender; it lends you its own money, even though it often sells the loan to the secondary market. A mortgage banker is also known as ‘direct lenders’.
Then there is another aspect about mortgage marketing which is ‘Conventional Financing’. These are further broken into two sections: ‘confirming and ‘non-confirming’. Confirming loans are a low risk to the lender, so they provide you with the lowest rates. They have the strict guidelines. Non-confirming loans are having no set guidelines and vary from lender to lender.
Finally, these were few of the things that will give you some knowledge on the mortgage market when investing in real estate in Maryland.
For More Details On Real Estate Investment Maryland, Virgina & DC Visit this site http://www.therealestateinvestmentqueen.com , http://www.marylandrealestatesecrets.com/
About Author
Discover how to make money in Real Estate Investment Online, Maryland Real Estate Learn from the Real Estate Investment Queen
Article Source:
http://www.1888articles.com
Other Related Articles How To Get A Bad Credit Loan by James Hunaban Get to know the mortgage market by Lloyd Irvin Identify theft on real estate by Lloyd Irvin Investigate a property by Lloyd Irvin |
