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Mortgages

Mortgages were created to give you, the home buyer, a realistic opportunity for home ownership.

Mortgages-A Breif Yet Helpful History

Mortgages For All

For some, mortgages are the investment of a lifetime, an opportunity to break the renting cycle and actually own your own piece of this beautiful planet. For others, a mortgage provides a means to consolidate debts and pay them off at a lower, tax-deductible interest rate. Mortgages are loans, a loan given to you, with your house, or rather the deed to your house, as collateral. This may seem severe, perhaps even dangerous, and apprehension is definitely of great importance when looking for the most favorable mortgages for your needs. But it is important to remember that throughout your process there are people and institutions specifically created to look out for your financial interests. My First Mortgage encourages you, the potential home buyer, to be vigilant and thorough in your research on mortgages, and here we will help you understand some of the reasons and background of home mortgages.

Once Upon A Time Mortgage Land...

It may sound corny, but the history of mortgages really is a sort of modern-day fairy tale, filled with danger and villains but also rewards and the potential for happiness ever after.

  • Mortgages are a fairly new invention, coming into modern use after the Great Depression of the 1930's.
  • Before then, homes were purchased outright, requiring endless years of intense saving on the part of the individual. These were primitive mortgages, balloon mortgages where the homeowner paid monthly payments for a short span of years then was required to pay off the debt all at once. These were very stressful mortgages to be sure, and not viable options for the general public.
  • As homes foreclosed across the country, the Federal Government set up V.A. Loans to help veterans affordably purchase their own homes. The template for 30-year fixed-rate mortgages, these V.A. mortgages allowed the veterans to pay back their government home loans over 30 years.
  • The program was wildly successful, prompting lending organizations such as banks and credit unions to enter into the mortgage industry.
  • After the introduction of private concerns and financial speculation the mortgage market grew exponentially. For the first time anywhere people could own their own homes without waiting for years to save up to buy outright, and the low monthly payments and depressed rates of interest allowed the public to save for other luxuries.
  • As the competition to loan increased over the decades, mortgage rates fell lower and lower.
  • Eventually, private mortgages were created as independent people possessed the means and methods to loan on their own accord.
  • There have always been some lenders who take their chances and create home mortgages with exorbitant interest rates, but with the advent of the Internet and mass communication consumer knowledge increases relentlessly.

An informed consumer base is good for business, increases competition and drives down the price associated with first and second mortgages. The more you understand about your first mortgage, the more comfortable you will feel and the more you can potentially save on our mortgage.

Options and options - your mortgage world

Understanding your home loans is a necessary ingredient to your mortgage success, but so are options. Limiting yourself to a single lender is a guaranteed way to be financially fooled. While you're speaking with a local mortgage broker, contact a national lending firm and see what sort of opportunities they can offer you. It never hurts to ask, and you will not be charged ( usually) for a home loan quote.


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