Best Mortgage Loan Services 2020
Mortgage ServicesScoreKey FeaturesSpecial OffersSiteThe GoodThe BadThe Bottom Line
LendingTree

9.9

 
Low APR For All Mortgage Types
Network of 350+ Lenders
Mortgage Payment Calculator
Up To 5 Free Quotes
No Hidden Fees
Visit SiteDozens of Available Lenders, Easy to Use Navigation, Free Credit ScorePre-Qualification Not Always ConcreteLendingTree may be a good option for you if you need to consolidate some debt or start shopping around for a mortgage. Of course, it won’t pull information from every potential lender.
Quicken Loans

9.3

 
Highest Customer Satisfaction
15 & 30 Year Fixed-Rates
5 & 7 Year ARM
Online Chat Assistance
Quicken Loans offers a completely online loan application process, which is convenient for consumers who don’t have time to visit a bank or financial institution.Visit Site View loans without affecting credit Locked interest rate for 90 days Easy online application Mortgage processing not faster online No in-person servicesQuicken Loans is a nationwide online mortgage lender. Fill out a simple online application to view your loan options without affecting your credit score.
J.G. Wentworth

9.1

Low Rates for Mortgage & Refinance
15, 20, 30 Year Fixed-Rates
No Hidden Fees
A+ Rating BBB
Visit SiteJ.G. Wentworth purchases structured settlements and other annuities. J.G. Wentworth is the largest U.S. purchaser of future payments from structured settlements, with about 5,000 transactions each year and more than $9.1 billion in total payments purchased.
Better

8.9

 
15, 20, 30 Year Fixed-Rates
Low down payment
24/7 Online Rate Lock
Offers an "underwriter reviewed" preapproval letter in as little as 24 hours.Visit SiteAn online process with human help as needed. Loan officers aren't paid commissions; they are strictly available for "support, not sales." For higher-value homes, offers 10% down with no mortgage insurance on jumbo loans. Doesn't offer home equity loans or HELOCs. Doesn't do VA or USDA loans. Not available in all 50 states.Better.com offers a complete online mortgage experience and a dedicated loan officer for each borrower.
Rocket Mortgage

8.6

 
FHA Loans Available
Low Down Payment
Fast Approval
Visit Site The site caters to self-service users who want to apply for a home loan without talking to a human unless it’s absolutely necessary. With your authorization, accesses asset statements from 98% of U.S. financial institutions. Tells you the loan amount you’ll qualify for within minutes. Rocket Mortgage’s document and asset retrieval capabilities can save you a bunch of time and hassle. Doesn't offer home equity loans or HELOCs. If you’re a “look me in the eye” type of customer, you’re out of luck. Doesn’t consider alternative credit data. It just looks at credit scores and debt-to-income ratios, the way most mortgage lenders always have.The online, mobile-first application tool, with on-demand support, that changed the industry.

Top Mortgage Loan Services rating updated for October 2020

What is a mortgage, what is it, how to take into account all the risks, who owns the property bought in a mortgage, and how not to overpay interest?

A mortgage is a guarantee of real estate. That is, a mortgage loan means that you take money from the bank at a percentage (credit), and the guarantee that you will return this money becomes a guarantee of your real estate: home, apartment, land.

A mortgage is usually perceived as a loan to purchase a home. In this case, the apartment (house) pledged with money received from the bank is pledged. But this is only one, albeit the most common, type of mortgage.

You can also mortgage the property that you already own and take money from the bank for a new apartment or house. Moreover, you can take a mortgage loan not only for the purchase of housing, but also for its repair, construction and other purposes without indicating them.

A mortgage loan is issued either by one agreement or by two: a loan agreement and a mortgage agreement, that is, on the transfer of real estate as a pledge to a bank.
What do I need to find out before taking a mortgage?

Usually, a large sum is taken for a mortgage for many years, so this is serious and for a long time. Therefore, before taking it, you need to answer yourself the following questions:

1. How much money do I have for the down payment and how much do I need to take on credit?

As a rule, in mortgage agreements there is a condition under which you must pay part of the cost yourself – the so-called down payment. For example, you must pay 30% of the cost of the apartment at your own expense, and 70% of the bank gives you a loan.

2. What part of my income am I ready to give to the bank on a monthly basis to repay the loan and during what period can I do it?

Estimate your income and upcoming expenses.
If your loan payments will exceed ½ of your annual income, then there is a risk of not being able to repay the loan.

Take your time, be picky and compare offers from different banks, carefully study the terms of the contract. Make sure that you understand each point.

General conditions for all customers, for example, the rights and obligations of the borrower and the lender, are set out in plain text in the contract.

3. How will I repay the loan?

Mortgage loan payments consist of two parts: payment of a portion of the loan amount (principal) and interest on the loan.

Do not forget about the rest of the costs: you will have to pay the state fee for the state registration of the mortgage and pay the mortgaged property insurance.

The Bank cannot charge you for the performance of its duties when applying for and servicing a loan, as well as for services that the Bank provides to you in its own interests. For example, for considering a loan application.

Mortgage repay by differential or annuity payments. Do not rush to get scared – we will explain what these words mean.

Differentiated payments – you return a fixed part of the main debt monthly plus pay interest for the outstanding part of the debt. Each month the payment is reduced, and for the entire loan term you spend less on interest than with annuity payments. But first, loan payments will be significantly larger than payments at the end of the term.

Annuity payments – you pay equal amounts every month. You gradually pay off the main debt: its share in the annuity payment increases every month, and the interest for the next month of using the loan, respectively, decreases. With a constant loan payment amount it is more convenient to plan your own budget.

The bank offers the payment method and indicates it in the contract – therefore, carefully study the conditions of various banks and choose the most convenient for you. The bank is also obliged to give you a schedule with information on the amounts of repayment of the main debt and interest and on the dates of payments (or a scheme for determining them) and indicate the total amount of payments for the duration of the contract.

The bank offers the payment method and indicates it in the contract – therefore, carefully study the conditions of various banks and choose the most convenient for you. The bank is also obliged to give you a schedule with information on the amounts of repayment of the main debt and interest and on the dates of payments (or a scheme for determining them) and indicate the total amount of payments for the duration of the contract.

4. Are there any risks? and how to avoid them?

There are several main risks.

 

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Loss / decrease in income

Lost your job, you have lowered your salary, expenses have risen – this can happen to everyone. That is why, before applying to the bank for a mortgage, you should carefully evaluate your financial situation in the long term. For example, if you plan to have a baby, it is worth considering that at least at the time of the decree, family income will decrease.

Rising inflation, the volatility of mortgage interest rates and market indicators to which these interest rates can be tied can also affect your ability to repay your loan.
It is impossible to foresee everything. But you can create a financial airbag in the amount of 3–6 monthly family income. This will help to survive temporary financial difficulties or adapt to new conditions.

Currency risk

Does your salary and mortgage have a different currency? If the exchange rate drops sharply, you pay more. Therefore, it is worth taking a loan in the currency in which you receive income. Even if interest rates on foreign currency loans are lower than on ruble loans.

Depreciation or damage to mortgaged property

In a crisis, housing prices could plummet. If suddenly you cannot make payments on the loan and the mortgaged property will have to be sold, then the proceeds may not be enough to repay the loan. That is, there is a possibility of being left without real estate and still be in debt to the bank.

The saddest thing is if something happens to the housing itself, such as a fire. Not only will you lose your home or apartment, but the bank may also ask you to pay all the loan ahead of schedule. Indeed, in this case, he will not have guarantees that he will receive his money back.

Protection against these risks is insurance. Therefore, most often insurance is a prerequisite for mortgage lending.

5. What can you insure against?

Banks usually insist on several types of insurance:

Collateral Insurance

By law, you must insure the property at its full value at your own expense and in favor of the creditor (bank), unless otherwise specified in the mortgage agreement. And if you have made a down payment, then the property is insured for a minimum loan amount.

Life and Health Insurance

The bank also wants to be sure that someone will pay the loan, even if something happens to you. Therefore, quite often, borrowers are offered insurance against an accident. Then, in case of a serious illness or death of the borrower, the insurer will partially or fully repay the loan for him. This is voluntary insurance, but if you refuse it, the bank may increase the interest on the mortgage or not give out a loan at all.

Financial risk insurance

The bank has the right to insure the financial risk of losses if the money from the sale of the mortgaged property is not enough to repay the loan. But banks do not always enjoy this right.

How to get a mortgage?

If the questions from the previous section did not cause any difficulties, you assessed all the risks and know exactly how to act in the event of problems with income, then you can proceed with the mortgage loan.

1. Choose a bank

Compare offers from different banks. Consider not only the interest rate on the mortgage, but also other expenses, such as payment of insurance and the services of an independent appraiser. Find out how convenient it will be for you to make payments: in what ways you can do it, whether the bank has many branches and ATMs, whether they are near your home or work.

Specify how much you can count on, what documents will be needed for this, and how quickly you will be able to issue a loan. Perhaps one mortgage of real estate to the bank will not be enough, and he will ask you to attract co-borrowers or guarantors.

2. Select a property

This step usually takes the most time. If the process drags on, banks may have time to change the conditions: interest on loans, the minimum down payment, the maximum loan amount, settlement rules.

Mortgage interest depends on many conditions, primarily inflation and the bank’s key rate.

3. Prepare documents

The standard list of documents is as follows:
– passport – yours and your guarantors or co-borrowers (if any);
– a copy of the work book or employment contract, as well as a statement of income;
– report on the valuation of the property you are buying, cadastral and technical passports;
– seller’s passport and documents confirming his right to real estate;
– an agreement on participation in shared construction.
The bank may require other documents, the full list it must inform you in advance.

4. Make a deal

When you and the seller collect all the papers, take them to the bank for verification. In most cases, you can send copies of documents by e-mail and not waste time visiting the office. When the bank’s experts verify all the information, you and the seller agree on the date of the transaction, you just have to come to the bank and sign the contract.

After that, you sign the sales contract with the seller and the contract with the bank. Sometimes banks offer to conclude at the same time two agreements: on the issuance of a loan and on the transfer of real estate as collateral to the bank.

5. Pay with the seller

Next is the calculation of the sale. In the case of a mortgage, this is also done through the bank – using a bank cell, letter of credit or an escrow account. With any method, the bank ensures that the transaction is conducted safely. The seller will definitely receive his money, but only after he registers the ownership of the property for you.

What is worth remembering when you have already taken a mortgage?

What can I do with the apartment?

You cannot sell, give or change a mortgage apartment without the consent of the bank, unless otherwise specified in the contract. In this case, you can rent such an apartment without the consent of the bank, unless otherwise specified in the contract.

You can bequeath your property, but upon receiving a donated apartment with a mortgage, the new owner assumes all the collateral obligations associated with it.

Can you lose your apartment?

If you can not cope with the payment of a mortgage, the bank can go to court in order to cover your losses through the sale of an apartment or other mortgaged property. But if you manage to pay off the loan debt before the sale of the mortgaged apartment, then the sale process can stop.

Please note that after the sale of a mortgaged apartment on the basis of a court decision, you lose the right to use this property. That is, you and everyone who lives there must free up the living space. If you do not, the new owner of the apartment may demand that the apartment be vacated in court.

What should I do if I cannot pay for a mortgage?

If you find yourself in a difficult life situation, due to which your financial situation worsened (for example, lost your job), then you have the right to take a mortgage vacation. You can reduce or even suspend mortgage payments for up to six months. This is your right under the law, and the bank cannot refuse you.

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