Mortgages - Shopping for Loans Online

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Peter Carroll, the acting assistant director for mortgage markets at the newly formed Consumer Financial Protection Bureau, suggests that borrowers begin the process by reading the fine print of each site they choose to work with. “Understand the terms of use and privacy policies,” Mr. Carroll said.

If you are shopping for loan rates on sites like Bankrate.com or LendingTree, also be sure to read their “frequently asked questions” section, industry experts say — and recognize, too, that these sites are businesses that make money by working with lenders, via a pay-per-click formula or by generating leads.

If you provide personal information, including your credit score, find out how widely that material will be circulated. As Mr. Carroll put it, “Understand that many lenders may be contacting you.”

At Zillow Mortgage Marketplace, the average number of rate quotes customers receive is 20, while at LendingTree it is 3 to 5, according to both companies.

Most sites provide rates and other information only from lenders that are signed on as their customers. One exception is Bankrate.com, which offers one table that includes its lending clients as well as the five largest banks and other lenders in some 600 local or metropolitan areas.

The online mortgage marketplace has become increasingly popular for borrowers researching loan rates and options. Some 1,200 mortgage-related Web sites are tracked by Experian Hitwise, and the top seven sites drew more than 22 million total domestic visits in April, up 24 percent from a year earlier and 74 percent from April 2010. The numbers are expected to grow with the wider use of smartphones and other devices.

Doug Lebda, the chief executive and founder of LendingTree.com, noted that for the last three years, the difference between the highest and lowest rates available was “wider than it has been in recent history,” making comparison-shopping even more important. But he also pointed out that the advertised rates are “indicative rates but they’re certainly not offers.”

Mr. Lebda suggested that borrowers also consider the mortgage initiation fee and closing costs.

As they navigate through online mortgage sites, borrowers will need to find out the sites’ criteria for matching them up with lenders, and whether lenders can pay for higher placement. That’s where reading the fine print may come in.

“Make sure you feel you’re in control,” said Erin Lantz, the director of Zillow Mortgage Marketplace. That way you can give your personal information out to lenders of your choice.

And if a credit report is pulled by lenders, Mr. Carroll added, find out “what rights do they have to that information besides evaluating that loan request?”

Borrowers will also want to learn about quality control at the sites they visit. Bankrate.com, for example, has a 40-person quality-control department that investigates consumer complaints and does what is known as “mystery shop” on various sites. LendingTree says it relies partly on consumer ratings and reviews, as does Zillow Mortgage Marketplace. It has more than 10,000 reviews to date, Ms. Lantz said, adding that the reviews are also vetted to ensure they are not from any lenders.

Mortgage shopping sites will often advertise that they are making comparisons easier and faster for borrowers, but that could be counterproductive, said Sue Berkowitz, the director of the South Carolina Appleseed Legal Justice Center, which advocates for greater disclosures by these companies. “It should be time-consuming, and done with analysis.”

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Extended mortgages - online features

Jack M. Guttentag, who has a PhD. in economics, since the mortgage industry for decades as a professor and researcher in international banking at the Wharton School of the University of Pennsylvania since 1969 and as a consultant for Freddie Mac and the World Bank, to name a few. He has a weekly column under the name "mortgage Professor" written for 12 years, and a group named the prior Mortgage Brokers Association, which promotes the transparency of fees not even started.

In February mortgage started a service that helps to match buyers and lenders on its website Professor Dr. Guttentag and two partners. "You can talk to all the people you like, and it has often minimal effect," he said "but if you have them a better way to do it better show, wears it makes much better."

Mortgage market and Bankrate.com are Dr. Guttentag compete with the likes of better-established organizations such as LendingTree, Zillow. Marketplaces are these so-called mortgage always become more popular as a way for borrowers loan prices and options research. For example, LendingTree, says that it has facilitated over 30 million loan requests and $214 billion in closed loan transactions since its inception 15 years ago. And all the available 1,200 mortgage-related sites tracked by Experian Hitwise moved 126 million visitors in February to 26 percent over the previous year.

The larger sites offer a mix of consumer mortgage calculators and other tools, along with fare quotes or match-ups with one or more of the hundreds of participants lenders. Add many other features and functionality, to stay more competitive.

Zillow mortgage marketplace focused on mobile applications, and have seen the early "enormous deployment," said Erin Lantz, the Director of the marketplace. To their mobile mortgage app for the iPhone that offers check borrowers loans and rates, has been downloaded more than two million times since June. In February, it started a version for Android phones.

LendingTree, now plans to redesign their website in the next three months, and has several functions, including one called "The best loan for life." It evaluates homeowners signed with LendingTree to see whether it would worth to refinance short-term loans against new offers from lenders. In June, are users of the site can add their own information - i.e., prices and conditions from other lenders, associated with not only the LendingTree. This will do a side-by-side analysis "and to see which is better", said Doug Lebda, founder. on Bankrate.com who would like a mortgage banker can now access "a call-center interface" and finally connect with someone, said Bruce Zanca, a spokesman. Not all mortgage banks have signed, he said.

The mortgage Professor service is tiny in comparison: only six mortgage lenders have so far signed. But Dr. Guttentag said that he hoped some of the larger shopping sites teachings. It consists of its mortgage-shopping site "certified network lenders" calls, of which each must comply with certain standards and post prices in real time. Borrowers can shop anonymously, until she bombed a lender, which you choose with information.

At various points in the mortgage shopping process are borrowers covered by "Decision Support," access to short informative articles and question-answer capabilities.

Dr. Guttentag is already considering updates. "We have a special section on niche products," he said.

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Mortgages - loans online shopping

Mortgage markets in the newly created consumer financial protection wizard suggests Office, Peter Carroll, Executive Director, that borrowers start read the fine print of any Web site who choose to work with. "Understand the terms of service and privacy policy", said Mr Carroll.

If you shopping are interest rates on sites like Bankrate.com or LendingTree loans, also make sure the section "frequently asked questions" read industry experts say - and also, recognize that these sites which are money by working with lenders, on a pay-per-click formula, or by generating leads.

If you will to provide personal information including your credit score to find out you made, how far, that material in circulation will be brought. As Mr Carroll put it, "understanding that many lenders will contact."

On Zillow mortgage marketplace is the average number of prizes offers customers get 20, while at LendingTree it is 3 to 5, according to both companies.

Most websites give prices and further information only from lenders who their clients are logged on. An exception is Bankrate.com, provides a table that the customers loans as also the five largest banks and other lenders in some 600 local or metropolitan areas contains.

Online mortgage market has become more and more popular loan prices and options for borrowers. Some of the 1,200 mortgage-related websites are tracked by Experian Hitwise and top seven sites drew more than 22 million domestic total visits in April to 24 percent compared to the previous year earlier and 74 percent from April 2010. The figures are expected to be with the wider use of smartphones and other devices.

Doug Lebda, CEO and founder of LendingTree.com, pointed out, that for the last three years, the difference between the highest and lowest rates comparison shopping make even more important "was wider than it was in recent history,". But he also pointed out that the advertised prices are as "indicative prices, but they are certainly not offers."

Mr. Lebda proposed that borrowers mortgage introduction also fee and closing costs into account.

As they navigate Web sites by online mortgage, must find out borrowers, the sites can pay them criteria for matching up with lenders, and whether the creditor for higher placement. This is where the fine print can come to read.

"Make sure that you feel that you are in the control", said Erin Lantz, the Director of Zillow mortgage marketplace. In this way can you give your personal information to lender of choice, out.

And when a credit report is pulled out from the lenders, Mr Carroll added to find out "What rights they have on this information in addition to assessing these applications from loan?"

Borrowers will experience also quality control at the sites that they want to visit. Bankrate.com, has, for example, a 40-person quality control Department, which investigated complaints and doing, what is known as "Mystery shop" on various websites. LendingTree says that it is based partly on consumer ratings and reviews, such as Zillow mortgage marketplace. It has over 10,000 reviews so far, Mrs Lantz said, adding that the reviews are also checked to ensure that they are not by any creditor.

Mortgage shopping sites is often to advertise, make easier and faster could be counterproductive comparisons for borrowers, but Sue Berkowitz, the Director of the South Carolina Appleseed legal said Justice Center, the advocates for more information of these companies. "It should be done time consuming and analysis."

View the original article here