Mortgage Companies: Specialty Guys
Let's talk about the specialty guys, the mortgage interest
companies. Why do they exist in what do they do for the average
consumer? Actually a lot. Mortgage interest companies exist for
the pure and simple reason of originating mortgage loans. If
mortgage loans are your specialty then quite naturally you would
assume you're very good at what you do. And most of the mortgage
companies are very good at what they do. So much so, that real
estate prices and mortgage loan products have seen a threefold
increase. What does this mean for the consumer and what does
this say about our mortgage companies?
What this means for the consumer is that now there are being
offered a wide range of the affordable, and quite accommodating
loan products. What does this say about our mortgage companies?
That today more than ever mortgage companies are creative with
their efforts to accommodate a growing and varied range of
customers. Mortgage companies offer mortgage loans that range
from interest only, 1% interest only, to the standard fixed rate
mortgage loan product. This article will take a moment to
examine the mortgage companies and the mortgage products offered
by these mortgage companies.
If you need to apply for a mortgage today, you only have to go
online to find your nearest mortgage company and a detailed list
of the mortgage products they provide. Even if you don't want to
complete the application online, you are supplied with all the
necessary information to make an informed and educated mortgage
decision without ever leaving the comfort of your home. Almost
all of the mortgage companies in existence today make use of the
online environment to advertise their business and their
business products. But, this is not the only avenue for
advertising the mortgage companies will use. Many of the
mortgage companies today use advertising venues via the
newspaper billboards and radio. By far the largest vehicle of
advertising used by the mortgage companies today is through the
use of the television; it is via the television that you will
most often hear about mortgage-company's and the mortgage
products offered.
Mortgage companies compete for your business by offering lower
then standard interest rates, and extremely unusual by
traditional lending standards, mortgage products. The increase
in the number of interest-only loan products is a testament to
the use of non- traditional products in order to increase
customer base. However, the consumer is a winner as far as the
interest rate expense because many of the specialized mortgage
companies can offer a lower interest rate than your local and
traditional lending companies, such as banks. Due to the
specialty of the mortgage company and the mortgage product
interest rates are sometimes a full 2 to 3% lower then the rate
offered through the traditional lending institution.
Factor in the advent of the online mortgage companies, such as
Quicken Loans, and you have an even lower interest rate offering
due to a lower overhead expense. What role has the online
mortgage company played in lowering interest rates, and pulling
from the traditional and physical-existence mortgage companies?
The influence has been quite great; many consumers have shopped
the online environment in order to obtain the low interest rates
offered. Companies such as Quicken and Ditech have experienced
phenomenal growth thanks to the online mortgage company
existence and television advertising.
The government has greatly encouraged the growth and competitive
nature of the mortgage company industry through the use of
government programs such as Fannie Mae and Freddie Mac, and has
empowered the mortgage companies with a means to sell existing
mortgages in order to originate new ones. Apparently, the
government wishes to encourage the success of the specialty
companies with the specialty rates!
I believe the existence of mortgage companies, the
ever-increasing range of mortgage products and a continued
increase a real estate prices has helped to contribute to the
stabilization of an extremely low interest rate, which in turn
has fueled the growth of the mortgage companies and the range of
products offered. As you can see, this is a market of
interconnected affectation and the consumer seems to be the
greatest benefactor. So carry on specialty guy!