The Different Certified Mortgage Types

2008-05-06 15:48:09

( Financial )



A mortgage is a transfer of property rights used as collateral for a loan. When an individual obtain a mortgage, features of mortgages should be taken into consideration. The features are the amount of the loan, maturity, interest rate, and the method of payment. In general, mortgages are long-term loans.

A certified mortgage planner ensures the consumers that the finance products are in alignment with market trends. A certified mortgage planner is a designation to an individual that shows he is a professional mortgage planner. Before a mortgage planner becomes certified, he must undergo training and pass a series of tests. Certified mortgage planners pursue and document ongoing transactions. They advise consumers regarding mortgages. A certified mortgage planner delivers to his clients a mortgage plan designed to help the client manage his debt wisely.

Self certification mortgage or otherwise known as self cert mortgage was established for the purpose of helping prospective home buyers who cannot confirm their income due to the fact that their earnings are not fixed. Self certification mortgage is the option for those people who are self employed and those who work on commission basis. Self cert mortgages are generally higher than other mortgage types due to the fact that the risk involved for the lender is higher.

There are many things to consider when applying for a mortgage loan. First thing to consider is the interest rate. Interest rates could be varied or fixed for the life of the loan depending on the agreed upon rate. Second thing to consider is the term of the loan. The term of the loan should be clear about its maximum term, that is, up to what date it is that the payment is due. Payment amount and frequency of payment is the third characteristic that you should consider. The agreement of this transaction depends on the borrower and the lender.


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