How to Choose the Right Software to Check Your Mortgage | Backed Securities

How to Choose the Right Software to Check Your Mortgage

There are many web sites available to help a borrower calculate his mortgage payment. However when it comes to FHA or mortgage calculation that has Mortgage insurance built into monthly payments. My suggestion would be to talk to an expert and ask him for a schedule of payment that can be provided in a pdf format to the borrower. The pdf is helpful to the borrower to exactly understand how the money is being applied to the last cent in which way. As an expert, its not only about telling over the phone to the borrower what his new payments would like but also to show in pdf easy to understand format which is self-explanatory to the borrower.

What is Mortgage Backed Securities

Let's consider a simple example. We have a Bank A that has $ 100 as deposit from checking and savings account holder. Mr X requires a Loan for $ 50 and Mr Y requires a Loan for $ 50. If the Bank A lends money to these two borrowers which it can because they already have savings from the account holders in their bank. The bank wouldn’t be in a position to lend the third person who comes to the bank looking for a mortgage or any other kind of loan.

In order that banks do not face shortage of any liquidity. The mortgage to Mr X and Mr Y is clubbed on the basis of risk the two mortgage poses and just like stocks on the exchange the bank sells the mortgage to any willing investor who has an appetite for such investment as Mortgage Backed Securities. MBS are considered to be the safest securities. Once sold on the exchange the bank immediately realizes its funds and now has the liquidity to meet the requirement of other mortgage borrowers.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154