MORTGAGE LAW
and
The Mortgage Law Attorney

     Because few home buyers have enough money in the bank to pay the entire cost of the home at once, they have to borrow part of the cost. Most consumers are not acquainted with the true cost of the loan they obtain, the "mortgage. Borrowers usually rely on a loan officer or mortgage broker to guide them through the mortgage loan process. However, neither the loan officer nor the mortgage broker truly represents the borrower’s best interests. Without the representation of a Mortgage Law Attorney, the consumer may be vulnerable when it comes to many of the unfair operating procedures of traditional lenders. Mortgage brokers and loan officers may charge thousands of dollars in undisclosed fees that can be avoided if you have the information and the access that Mortgage Law provides.

     Beyond simply saving money, the Mortgage Law Attorney will counsel and advise the borrower in order that they make informed decisions about their Mortgage Law Attorneys will provide the client with answers unmotivated by personal interest or gain. Their advice is considered sound, ethical and fair.

     Mortgage Law is an emerging area of law which has been acknowledged by the Bar Associations of six states, including Florida.

TYPES OF MORTGAGES

There are 4 basic types of mortgages that you can choose from:

1. A Fixed Rate Mortgage carries an interest rate that is set at or before the time of the loan, and remains constant for the entire term of the mortgage. At the end of the last year, the loan is fully paid off. The advantage is that the rate and monthly payment will remain the same. However, there is a tradeoff since the lender is taking the risk that interest rates will rise and it must carry the loan at a lower interest rate for most of the loan term, lenders usually charge a higher interest rate on a fixed rate loan -- which means higher monthly payments -- than the initial rate and payments on adjustable or balloon mortgages.
2. An Adjustable Rate Mortgage (called an "ARM") offers a lower initial interest rate and a lower initial monthly payment. However, both are "fixed" only for a much shorter period of time, often 6 months to 5 years. After the initial fixed period, both the interest rate and the monthly payments adjust on a regular basis to reflect the then current market interest rates based on an index. Each lender may use different adjustment periods and indexes. For example, one ARM may be adjustable every 3 or 6 months while another may be adjusted once annually. In addition, some ARMs limit the amount that the rates can increase (or decrease) on any adjustment date, perhaps to no more than one percent. The lower initial interest rate and lower initial monthly payment is offered in exchange for the borrower taking the risk that rates may rise in the future, which would mean both the rate and monthly payments will increase. Most ARMs also have an upper limit, a "cap", on the rate that may be charged over the life of the loan.
3. A Balloon Mortgage has a fixed interest rate and fixed monthly payment for a fixed period of time, such as 5 years, after which the entire balance of the loan becomes due at once. Balloon mortgages are usually a last resort for those who can’t qualify for a standard fixed or adjustable rate mortgage.
4. A Home Equity Loan is typically used by homeowners to borrow some of the equity they have built up in their homes. They usually involve a "floating" or adjustable rate of interest and are amortized over a period of years. They are second mortgages secured by a lien on the real estate.

APPLYING FOR A MORTGAGE

     Finding a quality home loan requires diligent shopping since rates and terms vary from lender to lender. A potential homeowner may obtain a loan directly from a lender, such as the local bank or savings and loan or credit union, or through an intermediary, such as a mortgage broker or Mortgage Law Attorney, who place loans they originate with both local and out of state lenders.

     Each source is likely to offer different loan arrangements, and different terms and conditions for the same type of a loan. Often a local branch may charge a different rate of interest and offer different terms than another branch of the same lender, which may also be different from the rate and terms a tradition broker or Mortgage Law Attorney could get you from that same lender.

ADVANTAGES OF USING A MORTGAGE LAW ATTORNEY

     The difficulty for most people in shopping for their own loans is that they don't know what questions to ask and most lenders offer only two or three programs. On the other hand, the like the traditional broker, the Mortgage Law Attorney can submit your loan to many different lenders, have access to many different types of loan programs, can shop around for the best and most competitive mortgage rates and terms available tailored to meet your particular needs. Unlike lenders and mortgage brokers, Mortgage Law Attorneys, in addition to obtaining a competitive loan rate, can represent your best interests by offering legal advice. If you do not have the time or knowledge to obtain your own mortgage, Mortgage Law Attorneys can provide an important and essential service.

     When buying your next home, you want to avoid the experience of unfair operating procedures that may result in charges thousands of dollars in undisclosed fee by consulting and using the services of a Mortgage Law Attorney. Their role is to legally represent you in the mortgage process and to use their knowledge of the mortgage industry and legal training to enable their you to apply directly to the Secondary Market (Ginnie Mae, Fannie Mae, Freddie Mac, Wall Street, etc.), bypassing the Retail Distribution Channel (i.e. banks and mortgage brokers) and obtain a “wholesale rate mortgage”. A mortgage that is commission-free, and free of mark up and hidden fees. A consumer can save thousands of dollars of “hidden charges” as a result of using Mortgage Law Attorney in the process of obtaining a mortgage.

     If you are having difficulty finding a Mortgage Law Attorney visit the website of The Attorney’s Title Fund at www.thefund.com or Attorneys Mortgage Services at www.amslawyer.com for more information.

– «» –