Low mortgage rates are spurring the recent boom in home ownershipWritten by Syd Johnson
Anyone serious about buying a home has seen recent ads offering low mortgage rates for first time buyers and current homeowners. One reason for this mass of offers is that most financial institutions now understand economic importance of having home owners as a part of their clientele.The advertising for low mortgage rates is specifically designed to bring in customers who never thought that they could qualify for a home loan. Who are these customers in demand? Lenders are going after non traditional borrowers First time buyers, single buyers, minorities, women and other groups that might have been shut out of home ownership market in past. If you’re a member of one of these groups you might have received mailings, phone calls, or seminar invitations to give you more information on how to get your own home, and how to do so with low mortgage rates.
| | A Blanket Mortgage covers multiple properties on the same loanWritten by Syd Johnson
Blanket mortgages are mostly used by commercial developers for one of two purposes: first, they might have a plot of land that they plan to develop into multiple lots and sell them off. Instead of getting a mortgage on each individual lot, they get a blanket mortgage for entire development. The second is if someone, not necessarily a commercial developer, has multiple plots already developed and wants to use all of properties as collateral for a new loan. One lots are developed, owner will get a release to clear title on each individual lot that is sold. A good application of this would be a commercial development or a subdivision. The blanket mortgage covers entire thing during construction, and then a release is obtained for each parcel as it is sold off. A release clause must be built into blanket mortgage that allows developer to sell off each unit of property as long as certain percentage of entire debt is paid off.
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