GMAC Mort Products Made Flexible For You

2007-03-08 10:33:40

( Financial )



The GMAC Mortgage Company is part of the GMAC Mortgage Group that includes real estate services and relocation services. The group also owns a bank through which it is able to offer GMAC lending services. GMAC Mortgage Group has another subsidiary, Homecomings Financial, through which Homecomings mortgage products are marketed.

Through the GMAC Mortgage Company, GMAC mort-gage products serve the needs of home buyers and homeowners like you. You will find a diverse pick of GMAC mortgages designed to fill specific customer needs. Like any home financing program, you can expect GMAC mortgages to include fixed-rate mortgages, adjustable-rate mortgages and balloon mortgages.

Beyond these basic offerings, however, GMAC mort-gage products try to address other needs. The company has a GMAC mort-gage option for you if you are unable to raise the money for the down payment and closing costs. This GMAC mortgage package provides cash for down payment and closing costs by giving you a second mortgage equivalent to a maximum of four percent of your target loan amount.

If you prefer to have smaller monthly payments, a GMAC mortgage plan allowing interest-only payments can be devised for you. Your other options for low monthly payments are adjustable-rate mortgages and balloon mortgages. These schemes allow you to pay only interest and minimal amounts on the principal for a certain specified period early in the mortgage period.

Remember, though, that towards the second-half of your loan life, you will be asked to remit bigger amounts to pay down your principal or, in a balloon mortgage, to pay the whole amount at the end of the period. You must make sure, therefore, that you will have the funds ready for that moment. You cannot afford to miss payments on arrangements like these.

GMAC mortgage services also feature the low-cost housing privileges available to active-duty, reserve or retired military personnel under the Department of Veteran Affairs, and to the general public under the Federal Housing Administration.

GMAC Mortgage Company helps you in other unseen ways by serving as a secondary market for mortgage papers. Your lender will quickly run out of cash to lend unless the bank’s debt paper is converted into cash. Otherwise, the lenders will just have to wait until enough borrowers pay their installments.

To avoid that cash crunch, lenders assign their rights to collect mortgage payments, in exchange for cash, to third parties like GMAC Mortgage Company. You, as borrower, will then be notified that future payments should be made to GMAC Mortgage or Homecomings Mortgage. GMAC mortgage-buying services actually give flexibility to lenders to continue their operations.


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