|
|
|
| |
Where Does the Money Come From for Mortgage Loans? In the "olden" days, when someone wanted a home loan they walked downtown to the neighborhood bank or savings & loan. If the bank had extra funds laying around and considered you a good credit risk, they would lend you the money from their own funds.
It doesn't generally work like that anymore. Most of the money for home loans comes from three major institutions:
- Fannie Mae (FNMA - Federal National Mortgage Association)
- Freddie Mac (FHLMC - Federal Home Loan Mortgage Corporation)
- Ginnie Mae (GNMA - Government National Mortgage Association)
This is how it works:
You talk to practically any lender and apply for a loan. They do all the processing and verifications and finally, you own the house and now you have a home loan and you make mortgage payments. You might be making payments to the company who originated your loan, or your loan might have been transferred to another institution. The institution where you mail your payments is called the "servicer," but most likely they do not own your loan. They are simply "servicing" your loan for the institution that does own it.
You see, what happens behind the scenes is that your loan got packaged into a "pool" with a lot of other loans and sold off to one of the three institutions listed above. The servicer of your loan gets a monthly fee from the investor for servicing your loan. This fee is usually only 3/8ths of a percent or so, but the amount adds up. There are companies that service over a billion dollars of home loans and it is a tidy income.
At the same time, whichever institution packaged your loan into the pool for Fannie Mae, Freddie Mac, or Ginnie Mae, has received additional funds with which to make more loans to other borrowers. This is the cycle that allows institutions to lend you money.
What Freddie Mac, Ginnie Mae, and Fannie may do after they purchase the pools, is break them down into smaller increments of $1000 or so, called "mortgage backed securities." They sell these mortgage backed securities to individuals or institutions on Wall Street. If you have a 401K or mutual fund, you may even own some. Perhaps you have heard of Ginnie Mae bonds? Those are securities backed by the mortgages on FHA and VA loans.
These bonds are not ownership in your loan specifically, but a piece of ownership in the entire pool of loans, of which your loan is only one among many. By selling the bonds, Ginnie Mae, Freddie Mac, and Fannie Mae obtain new funds to buy new pools so lenders can get more money to lend to new borrowers.
And that is how the cycle works.
So when you make your payment, the servicer gets to keep their tiny part, and the majority is passed on to the investor. Then the investor passes on the majority of it to the individual or institutional investor in the mortgage backed securities.
From time to time your loan may be transferred from the company where you have been making your payment to another company. They aren't selling your loan again, just the right to service your loan.
There are exceptions.
Loans above $227,150 do not conform to Fannie Mae and Freddie Mac guidelines, which is why they are called "non-conforming" loans, or "jumbo" loans. These loans are packaged into different pools and sold to different investors, not Freddie Mac or Fannie Mae. Then they are securitized and for the most part, sold as mortgage backed securities as well.
This buying and selling of mortgages and mortgage backed securities is called "mortgage banking," and it is the backbone of the mortgage business.
| |
[ Back To Mortgage Information ]
|
Real Estate, Houses , Homes, Cottages, Lake Huron Waterfront Property, Waterfront Property on Inland Lakes,Land, Tawas, East Tawas, Tawas City, AuGres, Oscoda Michigan
TO SEARCH LISTINGS
GO to www.all-northern-michigan.com
WELCOME TO NORTHEASTERN LOWER MICHIGAN!
Best Choice Realty, Inc. means this sincerely and knows that once you visit NORTHEASTERN LOWER MICHIGAN you, too, will feel the same way we do about the abundance of nature and beauty to be found in NORTHEASTERN LOWER MICHIGAN!
Iosco County, Arenac County and Ogemaw County are just an hours drive north of Saginaw, but offer a full range of recreational activities for those seeking an escape from city life. The Huron National Forest offers excellent hunting and the AuSable River has great fishing. Near Hale, Sand Lake Heights and the surrounding areas there are hiking, snowmobile and cross country ski trails and many all sports lakes for swimming, water skiing and fishing. And, of course, Au Gres is on the shore of Saginaw Bay and Tawas, East Tawas and Oscoda are on the shores of Lake Huron. So come up to Iosco County, Arenac County and Ogemaw County, check out the real estate available here and enjoy life!
Best Choice Realty, Inc. maintains an outstanding reputation in the real estate profession and we can assure you that YOU and YOUR needs are our #1 priority. Our real estate office and associates are members of real estate multi-list services (RMLS) covering Iosco County, Arenac County, Ogemaw County and Alcona County.
Our high quality staff of professional Real Estate Consultants have been trained to make your real estate move go as smoothly as possible. Each real estate associate is kept up to date with the real estate market and the changes in the real estate industry by ongoing real estate training and informational meetings. We're proud to have real estate agents that go the " extra mile " to provide you with the utmost in professional real estate service. We are locally owned and staffed by individual real estate agents who have spent years living and working in this area. We know the area and we know the real estate market.
We are a full service real estate company offering sellers agency, buyers agency, broker price opinions and real estate consulting. We have residential, commercial, resort, lakefront, acreage, hunting land and recreational properties available. If you are considering a move, or just have a question concerning real estate, don't hesitate to contact us. We personally guarantee the highest level of professional service...
Sincerely,
Michael D. Fournier
President/Associate Broker
BUYERS: "LOYALTY PAYS OFF"
Some buyers like to leave their name with three or four sales people. Although it may seem to be to the buyer's advantage to have a number of real estate agents to work with, it is usually a very ineffective approach. The assumption is that many real estate agents will produce more results than working exclusively with one. THIS IS NOT TRUE! YOU NEED THE TOTAL COMMITMENT OF ONE REAL ESTATE AGENT. My advice to you is to find a Realtor whom you feel will get the results you need. Tell this real estate agent that you will work exclusively with him or her ( SIGNING A BUYERS AGENCY CONTRACT IS RECOMMENDED ) as long as you see the effort required to get the job done. In this way, you will have a dedicated real estate agent who will take on the personal responsibility of handling all the details of your home purchase.
REAL ESTATE AGENTS are paid on a straight commission basis. They don't receive a salary. They are not on an expense account. They don't get paid unless they SELL YOU SOMETHING. This is why working with more than one agent is not a good idea. None of the real estate agents know if their efforts will result in any income. If a agent knows that you will be loyal to them that is all the motivation needed to provide, a real estate agent, dedicated to getting the job done right.
PRICING YOUR HOME TO SELL
Get a comparative market analysis.
EXPIRED
Out of range. Up to 35% of all homes put on the market never sell. The prices at which these homes expired represent the overpriced range. IF YOU PRICE HERE, THEN YOUR LISTING WILL ALSO EXPIRE!
CURRENTLY FOR SALE
Represents the upper end of the market. These are asking prices only. They have not been attained in the real estate market. Examine the number of days on the market and if it has been a long time, the homes(s) is/are priced to high.
SOLDS: - TRUE MARKET VALUE.
NEVER SELECT A REAL ESTATE AGENT BASED ON THE PRICE THAT THEY TELL YOU!
A real estate agent has no control over the price the market will allow. SELECT YOUR REAL ESTATE AGENT FIRST based on competence of the real estate agent, company and services provided. Don't encourage or allow the real estate agents to " bid the price up", by telling you what they think you want to hear, to get the listing. True professional real estate agents will give you candid feed back and factual information, based on "SOLD PROPERTIES", so you can price within the "MARKET".
BENEFITS TO PROPER PRICING
1. FASTER SALE
2. LESS INCONVENIENCE
3. EXPOSURE TO MORE PROSPECTS
4. BETTER RESPONSE FROM ADVERTISING AND DRIVE BY CALLS
5. INCREASED SALESPERSON RESPONSE
6. ATTRACTS HIGHER OFFERS
7. MEANS MORE MONEY TO SELLERS
REASONS SELLERS USE WHEN OVERPRICING
1. WE'VE MADE IMPROVEMENTS: Improvements should be made for enjoyment, not for sale. You cannot add an item to a home, select it to your style, use it, then expect a buyer to pay the original cost.
2. WE NEED THE MONEY: An owners need for money does not increase the value of the home.
3. BUYING IN A HIGHER REAL ESTATE MARKET: Real estate values are location specific. High real estate values in the destination market/home do not increase the value of your existing home.
4. WE PAID THIS MUCH: Chances are you paid market value. It's not that the price was too high, but sometimes the market experiences subsequent changes. The real estate market is effected by interest rates, the economy and supply and demand.
PRINCIPLES OF VALUATION
1. COST - The amount actually paid for a property plus any capital improvements made since the purchase.... 2. PRICE - The stated amount an owner is willing to accept for a property.... 3. VALUE - The amount a single buyer is willing to pay given a certain set of circumstances.... 4. MARKET VALUE - The amount many buyers would pay a reasonable, willing, seller. It is based on the history of similar real estate recently sold in the area.
Office is Locally Owned and Operated.
1106 Bay Drive, Tawas City, Michigan 48763 - 1-866-585-5980
FULL SERVICE NORTHERN MICHIGAN REAL ESTATE COMPANY, RESIDENTIAL REAL ESTATE, RESORT REAL ESTATE,WATERFRONT PROPERTY, INLAND LAKEFRONT PROPERTY, LAKE HURON PROPERTY, COTTAGES, HOMES, HOUSES, ACERAGE, COMMERCIAL REAL ESTATE, NORTHERN MICHIGAN PROPERTY, INVESTMENT PROPERTY, BUYERS AGENCY, SELLERS AGENCY
Marketing Areas: TAWAS, SAND LAKE HEIGHTS, OSCODA, GREENBUSH, HARRISVILLE, HALE, AUGRES, EAST TAWAS, TAWAS CITY, ROSE CITY, WEST BRANCH, NATIONAL CITY, WHITTEMORE
Marketing Zip-codes: 48763, 48748, 48730, 48750, 48703, 48654, 48738, 48661, 48739, 48740, 48770
Tawas Michigan Real Estate, Tawas City Michigan Real Estate, East Tawas Michigan Real Estate, Oscoda Michigan Real Estate, Au Gres Michigan Real Estate, AuGres Michigan Real Estate, Hale Michigan Real Estate, Iosco County Michigan Real Estate, Arenac County Michigan Real Estate, Alcona County Michigan Real Estate, Ogemaw County Michigan Real Estate, National City Michigan Real Estate, Sand Lake Heights Michigan Real Estate, Hale Michigan Real Estate, Lake Huron Michigan Real Estate, Northern Michigan Real Estate, Northeastern Michigan Real Estate. Providing a superior level of informed, professional real estate services, CMA'S, BPO's, Consulting, to buyers and sellers in the greater Northern Michigan Real Estate Market, Tawas City, East Tawas, Sand Lake Heights, National City, Oscoda, Au Gres, Hale, Greenbush, Tawas, Iosco County, Arenac County, Alcona County and Ogemaw County, Michigan.
Current Tawas Bay Weather - Click for Detail www.tawasbayweather.com
Other Best Choice Realty, Inc. web sites: www.lakefront-waterfront-property-east-tawas-michigan.com , www.tawasmi.com , east-tawas-realestate.com , www.tawas-lakefront.com
Real Estate Websites by iHOUSEweb, Inc. ®
|
|
