Private Mortgage Insurance
If you get a new mortgage and finance more than 80 percent of the value, you will be required to pay private mortgage insurance (PMI). The same rule applies with zero equity home equity loans. The premiums for your PMI will vary depending on your lender and the amount that you borrow, but you can expect to add anywhere from $20 to $150 to your payment each month. You will be required to carry this insurance until you have built up 20 percent equity in your home.
Higher Interest Rates
Indiana home equity loan rates currently average 7.64 percent. If you will be getting a zero equity home equity loan, you will be paying a rate that is at least 2 to 6 percent higher. As with any loan, your rate will depend on your credit history, the amount you borrow, the lender you choose, and other various circumstances.
Zero equity home equity loans aren’t right for everyone. Before applying, you will want to assess the risk factor, as well as the amount of time you plan to keep the home. If you find yourself in financial trouble, you will be hard pressed to get any more money out of your property. You may also find it difficult to recoup the money on your loans if you decide to sell.
You probably read the title of this article wondering why you would want to become a mortgage broker in Indiana? Or you might already have a great reason to become a mortgage broker and you are searching for information on how to become a mortgage broker.
I am going to give you my top 5 reasons to become a mortgage broker no matter where you are, and I will explain why Indiana is such a great choice for mortgage brokers.
Reason #1 – The mortgage business is very lucrative
Think about it this way, a loan officer can make a six figure income each year, easily. If you have 4-6 of them working for you and they make six figures a year, think about what type of money you would be making. In order to make six figures as a loan officer you have to close 10-15 loans a month and create revenue for your company of about double what you make. That translates into an income for you, the broker, of over a half million dollars a year, not to shabby.
Reason #2 – The mortgage industry will never go away
The only way the mortgage industry will disappear is if, somehow, everybody can afford to pay cash for their homes. That will never happen. We will always need houses and we will always need financing to buy those houses. This is pretty good job security, don’t you think?
Reason #3 – The mortgage industry only requires 40 hours of work a week
If you set up your business correctly you can offer your loan officers a lot of freedom to come and go as they please. Plus you can do the same. There is no reason for you to be open more than 5 days a week for 40 hours total. This means no overtime and no weekends of work. You can spend that time with your family where you belong.
Reason #4 – Your advertising is simple and can be done by a third party or yourself
All you have to do to advertise is design a letter that is written to your potential customers. Then, you purchase a mailing list of homeowners in your area and send it out. Instruct your prospects to call your office if they are interested and then, sell the leads on one of your programs from one of your lenders.
I worked for a mortgage broker for 4 months and this is all they did. I sold more loans for them than I did for anybody else, and I never had to do any telemarketing at all. Loan officers will find their own referrals and lead if you don’t make them do any cold calling. You can also purchase leads online for a good price and sell those.
Reason #5 – You are able to help people with good or bad credit and you get a sense of pride from helping others
As humans we get a certain sense of joy from helping others. The thank you letters, hugs, and compliments you will get when you turn someone’s financial life around or help them buy their first house will amaze you. Sometimes this is enough and the money is just extra. This is by far the best reason to become a mortgage broker and the most rewarding
Now, why would I pick Indiana for my new mortgage broker business? Indiana is not flooded with mortgage brokers yet, which means the competition is not too crazy. Another great reason is because Indianapolis, Fort Wayne, Terre Haute, and Muncie are all growing and so are the smaller cities around those areas.
There are also a lot of rural areas in Indiana, which means that if you can specialize in rural loans you can really enter into a niche market. It is very hard to get a good loan in a rural area because so many loan officers and mortgage brokers don’t try hard enough to make these loans happen.
Now you have all my reasons for becoming a mortgage broker, and you have my choice for where I would open up at. Use this information along with some mortgage training and you will be well on your way to a new and very lucrative business.
Indiana home mortgage loans continue to remain competitive. The real estate market with its lower prices and increased inventory now favors buyers. After years of increasing home prices, some areas of Indiana, such as Columbus, saw a 3.55% drop in property values in 2006, the largest fall in the nation. However, parts of the state, like Northwestern Indiana, continues to see steady growth and sales.This means it is a good time for new homebuyers to jump into the housing market. Mortgage rates have also fallen almost a point to 6.3%, but there continues to be a wide variation in rates due to differing financing options. This is where a mortgage broker can help you find the best home loan for your situation.
Research Online For An Indiana Mortgage Broker
By searching online for an Indiana mortgage broker, you can easily compare financing options from a number of companies, both national and local. Just be sure that each broker is aware of your Indiana address, since property location affects mortgage rates in part.
Compare Loan Quotes
Ask for loan quotes from a number of brokers and compare their offers. Each broker will have unique connections with different mortgage companies, so there may be a difference of thousands of dollars in their home loan terms.
Pick The Mortgage That Works For You
A good mortgage broker will know that with Indiana’s relatively flat home price’s, there is no guarantee that you will see a significant increase in your property value in the near future. They will recommend financing that works with your budget and home goals. For instance, for an interest-only or capped adjustable rate mortgages to work, you need to plan to keep your home loan for a number of years. Otherwise, you could find yourself owing more on the home that what it is worth.
The best mortgage brokers understand local housing trends and your financial goals, while providing competitive financing options to buy a home.
Owning a home is almost everybody’s dream. Most people take mortgage loans to buy their homes. The concept of mortgage is such that it is usually given against some security and the loan amount needs to be paid out in installments over the years. A mortgage loan is taken not only to buy a new home but also to avoid foreclosure. However, many a times the mortgagee in unable to meet payment or afford the mortgage and hence they end up losing the house or they may never be able to own one at all. To reduce this problem in the state of Indiana, there are state sponsored programs. The Indiana Mortgage Help provides guidance to the people of Indiana regarding the statewide help available to the low or middle income people of Indiana to buy houses.
About The Program
The Indiana Housing and Community Development Authority provides various state sponsored programs like the First Home Program, the Market Stabilization Program, Mortgage Credit Certificates, and so on to help the people of Indiana own homes. The First Home Program provides mortgages at rates below the market rate. The First Home Plus provides first time home owners with a down payment amount that need not be paid back until the home is up for resale. The Market Stabilization Program provides home buyers with a loan amount of $15000/- which need not be repaid if the owner is living in the purchased home for a period of not less than ten years and so on. Some of the programs available with the Authority are time bound, meaning the program will be closed after a certain period of time.
The Indiana Mortgage Help details how the Indiana Housing and Community Development Authority ensures that a home of their own is a dream come true to the low and middle income groups of the community. This in turn helps to balance out the inequalities in social standing to a certain extent.
The Authority not only helps the new home owners but also those owners who are being threatened by foreclosure. The Indiana Foreclosure Prevention Network helps those homeowners who are not able to meet a mortgage payment. The service includes a toll free number that the distressed party can call and ask for help. The program also hosts a website that provides advice to the home owners as to the steps to be taken to avoid the foreclosure. It also includes restructuring of the housing loans.
Most people are unaware of the options available to them by way of government funding when it comes to housing. The United States is trying to ensure that its citizens are properly housed and clothed. As such most states offer several programs to its people that would help them own a home. In the state of Indiana mortgage help comes in the name of the Indiana Housing and Community Development Authority. They are dedicated to the cause of helping the people of Indiana own homes or avoid foreclosure.
Maybe you’re buying your first home in Indiana, or perhaps you’re relocating to Indiana from another state. Either way, it’s important that you educate yourself on Indiana home loans before shopping for a home and mortgage. This article explains what you’ll need to know before buying a home in Indiana:
The state of Indiana has a diverse population, ranging from highly-populated major cities to small farm towns. The number of jobs in Indiana has been steadily increasing each year, and Indiana has many schools and colleges that are top-ranked for the nation.
Compared to the national average, costs of homes in Indiana are low — the second lowest among its surrounding states. The average income in Indiana is higher than expected when looking at the cost of homes, with more homeowners paying less than the recommended 30% of their income toward housing expenses.
However, homes in Indiana do not appreciate in value comparatively with the national average — the rate of Indiana home appreciation has recently been only one-third of that of the national average. Additionally, Indiana foreclosure and bankruptcy rates are above the national level. However, the high level of foreclosures and bankruptcies represent potential for new home buyers to obtain a house for much less than its appraised value.
If you’re buying a home in the state of Indiana, you qualify for both federal and state FHA and VA loans. First-time home buyers qualify for Indiana FHA loans with below-market interest rates, and, depending on their income, may also qualify for up to $3,500 in down payment assistance. Additionally, all homeowners qualify for First Home 100 assistance, which can offer both below-market interest rates and down payment assistance for persons buying a home in an authorized rural area.
In addition to FHA loans, the state of Indiana also offers comparable programs to people of very low income, persons with disabilities, veterans, teachers, firefighters, law-enforcement officers, and state and municipal workers. These individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the office of the Indiana Housing and Community Development Authority.