For a First Time Buyer - Commercial Mortgage Tips!

For a First Time Buyer - Commercial Mortgage Tips!

By Vijay K Shetty

A mortgage loan may have certain hidden charges, beware of these. If you are a first time buyer it is advisable to go through a guidance manual which will help you understand the intricacies of a mortgage. It takes some time of yours to go through the manual and it is a must as you are pledging your valuable collateral against it.

You are considering a long duration loan, see if you want to stretch your loan period for long? Say about 15 to 25 years would be ideal for those who can't afford huge equated monthly instalment every month and would want to pay less but over a stretched period of time. If you have sold your shares and property and have a lot of cash all of a sudden, you can decide to pay your mortgage earlier than that period.

But, cross check with your bank what is the penalty you need to pay in case you pay back early. Just cross check with the rate of interest you would save by paying off early. If it is really lucrative, then you must try taking this wise decision.

It is advised that you read the fine print carefully so that there is no confusion. You must be aware of the options open to you. If it is for pub finance, you must be aware that there are pub brokers, bankers and brewery owners to help you out.

Getting your liquor supply and your loan from the brewery owner would be a good idea for your bars, pubs or night clubs. They may offer you discounts on liquor supply as well as your loan interest rate.

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For a First Time Buyer - Commercial Mortgage Tips!

Mortgage Buyer Advice

Mortgage Buyer Advice

By Kristy Annely

The term mortgage buyer refers to people or a group of people that purchase mortgage notes from various lenders. The selling of a mortgage note is often a good solution for both the mortgage buyer and the lender.

Lenders choose to sell their mortgage for various reasons such as urgent cash requirement or simply relieving themselves of the stress of managing the mortgage related issues. Mortgage buyers are able to purchase the mortgage notes cheaply and intend to make a profit by selling the property at a higher rate.

Lenders can either sell the mortgage note in full or in part. This means if a lender requires money urgently, the mortgage can be sold for a specific period of time. For this period, a lender receives a lump sum amount in exchange of which the mortgage buyer is allowed to collect the payments from the debtor.

After the period is over, the lender can go back to collecting the usual periodic payments from the borrower. When the mortgage note is sold in full, the amount received is more than what the lender would have got on a partial sale.

A mortgage buyer generates the profit by paying a lower amount lower than the worth of the property and selling it at the same or higher price. In case of partial mortgage note purchase, the mortgage buyer pay the note holder an amount less than the total worth of the payments and collects the full payment from the debtor.

This again enables the mortgage buyer to earn a profit. If the debtor is paying regularly and honoring the contract, the mortgage buyer faces very little risk. However, if the debtor is a defaulter or is not able to abide by the contract due to any reason, the mortgage buyer is forced to accept the loss.

The rate at which the mortgage is being paid also determines the amount of profit the mortgage buyer will make. Fixed rate mortgage is less risky than variable rate, though in case of rise in interest rates, even variable rates will spell profits for the mortgage buyer.

Mortgage Buyers provides detailed information on Mortgage Buyers, First Time Mortgage Buyers, Home Mortgage Buyers, Mortgage Note Buyers and more. Mortgage Buyers is affiliated with Exclusive Internet Mortgage Leads [http://www.e-InternetMortgageLeads.com]. Article Source: http://EzineArticles.com/?expert=Kristy_Annely Mortgage Buyer Advice