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Home | Mortgage Basics Site Search 

Mortgage Basics Everyone Should Know

This department covers basic lessons everyone in the mortgage industry should know. In order to become a top producer, you've got to have the nuts and bolts down first. New people should start their loan officer training here.

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DOWNLOAD = Common Mortgage Terms For Morons
DOWNLOAD = Common Mortgage Terms For Morons What's LTV? How about DTI? If you're baffled and confused by all the mortgage jargon then you need my mortgage terms for morons cheat sheet. This little guide is great for new people who are having trouble remembering what all the terms are, etc. If you come across any others, please let me know. This resource is in Microsoft Word format. . . . read more
DOWNLOAD = Monkey Scripts For Loan Officers
DOWNLOAD = Monkey Scripts For Loan Officers Do you know what to say to prospects? Follow my monkey scripts and overcome every objection. The first thing I did when I got into the mortgage industry was to create a working script. The script would help me to open the call with the prospect as well as create rapport. And it kept me on track to remember what I was trying to say. It also helped in giving me a 'reason' to call, as well as overcome many of the typical objections that prospects throw at you. . . . read more
DOWNLOAD = Razzle Dazzle Best Mortgage Book
DOWNLOAD = Razzle Dazzle Best Mortgage Book Sometimes the best things in life are free. Well this booklet put out by the Federal Government certainly is a little razzle dazzler your borrowers would love to get their hands on. And best of all, it's free! Entitled, "Looking For The Best Mortgage: Shop, Compare, Negotiate" is a quick and handy guide into the mortgage process written at an 8th grade level. Even a monkey could understand this verbage which makes it great for first time homebuyers who are confused on where to start. . . . read more
Understanding The Real Estate Process
Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. There are several key terms associates with purchasing real estate that are helpful to learn. . . . read more
Getting An Appraisal On Your Property, What It All Means
Getting an appraisal done on your home or property is one of the first things you want to take care of when you decide to sell. Just because you think you have some idea of what your home or property is worth, the dollar amount that you come up with is most likely drastically different from the dollar amount that a professional appraiser would come up with. . . . read more
Private Mortgage Insurance Demystified
If your down payment on a home is less than 20 percent of the appraised value or sale price, you must obtain private mortgage insurance, known as PMI, with your lender. This will enable you to obtain a mortgage with a lower down payment because your lender is now protected against any default on the loan. . . . read more
Are Mortgages A Risky Business For Banks And Consumers?
A bank or mortgage company is nothing more than a box in which to keep money. The owner of the box has to do a few calculations. Firstly, how much is he going to offer those people who deposit cash in his box, in return for such a deposit? Secondly, how much of that money should he keep as cash in case the owners of that cash want it back? . . . read more
Mortgage Consumer Bill Of Rights
This bill of rights was laid out by Franklin Raines, president of Fannie Mae on January 15, 2000. The Mortgage Consumer Bill of Rights is a pledge fof $2 trillion over 10 years to help consumers gain access to home ownership. . . . read more
Secondary Mortgage Market Sets the Standards and Practices for Mortgage Lending
The Secondary Mortgage Market is responsible for the setting many of the rules and common practices that determines who gets a home loan. The secondary market includes Fannie Mae (Federal National Mortgage Association or FNMA), Freddie Mac (Federal Home Loan Corporation or FHLMC), Ginnie Mae (Government National Mortgage Association or GNMA) and a variety of other investment oriented institutions. . . . read more
Where Consumers Can Get A Home Mortgage
There are hundreds of sources for home loans online and right in your neighborhood. Banks, Credit Unions, Mortgage Bankers, Government Agencies and Private Sellers all offer different sources of financing for anyone shopping for a mortgage. . . . read more
Inside The Secondary Mortgage Market
The borrowers mainly are concerned with only getting their loans approved. They don't really think as to what happens to these loans or how the lenders can afford to lend you so much of money. Here we attempt a detailed study of these factors with reference to the secondary mortgage market. . . . read more
Homeowner's Insurance: The Mortgage Connection
A home owners' insurance is the cover for the house against natural calamities as well as liability. This covers the house and its contents but also other personal possessions which the house secures. . . . read more
Choose Wisely-A Comparison of Mortgage Brokers And Banks
My career in the mortgage industry has provided me with many opportunities to work with both mortgage brokers and banks. I believe mortgage brokers are great tools for consumers in search of the best financing options available. A mortgage broker differs from a bank representative in some important ways. . . . read more
Private Mortgage Insurance Doesn't Protect Homeowners
If you borrowed more than 80% of the appraised value of you home, you're probably paying private mortgage insurance (PMI). PMI that is not lender paid is a waste of money. If you default on your mortgage, the private mortgage insurance provider will pay the lender, but you still would lose your home. . . . read more
UK Mortgage Terms Explained, Helpful When Dealing With Pond Jumpers
For our fellow loan officers in the UK, here are some UK mortgage terms explained. If you are a US mortgage broker, can you spot the difference? If you are dealing with foreign buyers here in America, it's always helpful to speak their mortgage language. . . . read more
Understanding The Credit Reports Relevance In The Mortgage Process
One might be wondering why some lenders turn down a mortgage application while some others might consider it fit for approval. The answer may well lie in the credit report and the credit score to be precise which plays a crucial role in loan sanctioning. . . . read more
Questions Consumers Must Ask Their Mortgage Lenders
Buying and financing a home today can be overwhelming. Here are some questions to ask your lender so that you can make informed decisions. . . . read more
Mortgages: What You Need To Know
A mortgage is legal agreement or contract that says that a party has agreed to put up a property, a house or a piece of real estate, as security to get a loan. By doing this, the person getting a loan can buy a piece of property that he initially cannot afford. Still, if by any chance, he cannot pay for the loan, the bank will have to foreclose the property and resell it to others. . . . read more
5 Myths About Mortgage Points
Mortgage points are one of the most misunderstood concepts in the mortgage world. On the surface, points are scary, and many consumers equate points with mortgage scams and unnecessary junk fees. However, nothing could be further from the truth. . . . read more
The Federal Reserve Bank, The Real Secret Behind Mortgage Money
The Federal Reserve System acts as the central bank of the United States. Created in 1913, the Federal Reserve sets monetary and financial policies for the financial industry and trades currency with foreign countries. . . . read more
Top 4 Mortgage Mistakes Consumers Make
With interest rates now at an all time low, many Americans are looking into buying their first home. Applying for a mortgage while the rates are still low is a great way to save money, but four simple mistakes can lead to thousands of lost dollars. . . . read more
Brokers Or Lenders: Explaining Differences To Consumers
A mortgage is a mortgage is a mortgage. NOT! Not only do mortgages differ between lenders, but they also differ greatly by the lenders, themselves. There are two types of real estate originators -- brokers and loan officers. . . . read more
Mortgage Terminology Explained For Consumers
When you first apply for a mortgage, you may feel you've stepped into a different culture with a language all its own. More than likely, your mortgage professional is throwing many new terms and expressions your way. . . . read more
Interest Calculator
Interest Calculator This calculator will output a monthly payment based a given interest rate. It's quick, easy to use and available online anytime you need it. Why not give it a try and see what you think? . . . read more
Loan Amortization Calculator
Loan Amortization Calculator This amortization calculator will show you a breakdown of principal and interest over the life of a mortgage loan. You can even print out a full amortization chart and present it to your clients. Again, this is a great tool for financial planning and to see how much money goes to interest in the first half of the loan. . . . read more
Really Simple Mortgage Calculator
Really Simple Mortgage Calculator Here is a simple mortgage calculator to determine a mortgage payment including escrows. It proves that sometimes the best finance tools are the simplest and easiest to use. If you don't have a physical calculator handy, use this one! It's online 24/7 and ready to work for you. . . . read more
Mortgage Payoff Goal Calculator
Mortgage Payoff Goal Calculator This calculator will show your clients the additional monthly payment they will need to make on their current mortgage in order to pay if off within a specified number of years. By helping them plan for the future, you are once again setting yourself apart from the masses. . . . read more
Bi-Weekly Mortgage Calculator
Bi-Weekly Mortgage Calculator This calculator will show you how much you're clients will save if they make 1/2 of your mortgage payment every two weeks instead of making a full mortgage payment once a month. This alone could cut 5 to 10 years or more off their mortgage, depending on how much extra they contribute. . . . read more
Debt Consolidation Calculator
Debt Consolidation Calculator Find out how much your clients could save by consolidating their high-interest debts into one low-rate mortgage loan. By showing them the numbers in black and white, your job as a valued trusted advisor becomes that much easier! The more you show, the more you sell. . . . read more
Dictionary Of Real Estate And Mortgage Terms: A To H
Use this handy reference guide to help you with mortgage and real estate terms you may be unfamiliar with. Hundreds of words and definitions covering every area of the industry. . . . read more
Dictionary Of Real Estate And Mortgage Terms: I To M
Use this handy reference guide to help you with mortgage and real estate terms you may be unfamiliar with. Hundreds of words and definitions covering every area of the industry. . . . read more
Dictionary Of Real Estate And Mortgage Terms: N To Z
Use this handy reference guide to help you with mortgage and real estate terms you may be unfamiliar with. Hundreds of words and definitions covering every area of the industry. . . . read more
Mortgage Brokers Differ From Loan Officers
A mortgage broker is an individual which acts as a middle man between lenders and borrowers. A skilled mortgage broker can look at a variety of different loans to find one which suits the needs of the borrowers. . . . read more
The Hierarchy Of Lenders
Think about the lending business like a ladder. On the top of the ladder, you've got A-paper loan products. We've all heard of A-paper loans. Credit is excellent. Income, assets; it's all there. So those programs are at the very top. . . . read more
Where Does Mortgage Money Come From?
Where does mortgage money actually come from? When you get a $500K mortgage, who actually writes the checks? Most people have no idea. Does it come from a bank? Does it come from the government or some large quasi-governmental agency like Fannie Mae or Freddie Mac? . . . read more
Mortgage Loan Flowchart
Here's a simple mortgage flowchart showing the loan origination process from start to finish. This was sent in by a fellow warrior for everyone, especially people new to the industry. Enjoy! . . . read more