Firstcall Mortgages cites that there are now a few hundred mortgage lenders providing thousands of different products and options. Most of these lenders offer some forms of online mortgage. These online mortgage lenders can be divided into two main groups: ?brick and mortar? and ?online only.? The brick and mortar online mortgage lenders also have a physical office that a client can visit. The online only mortgage lenders offer no face-to-face interaction.
The online mortgage lenders can also be grouped according to from where their products come. Some online mortgage offers come only from one source, one bank, for example. Other online mortgage organisations offer products from a wide range of companies, similarly to how an independent mortgage broker works.
Most online mortgage companies have on their website a mortgage calculator to get you started. In general, you furnish the cost of the home, for how long a term you would like the online mortgage, and an interest rate. From this information, an estimated monthly repayment will be calculated. Sean Horton, in his article Take Advantage of an Online Mortgage Calculator, on Ezine.com, also says to be prepared to divulge ?your current employment status and credit status? towards the beginning of your inquiries. This online mortgage calculation, of course, is only a rough idea. You will have to supply much more information and agree to many terms in order to have a final answer.
An increasingly popular trend in the online mortgage world is the commission rebate. The Financial Times reported on 11 April 2008 that ?a handful of online mortgage brokers offer rebates of about 50 per cent of the commission they earn for arranging loans for borrowers ? while also charging no other broker fees.? This rebate can be helpful, considering ?the general rise in mortgage product fees in recent years;? however, advice does not generally accompany these offers. They tend to be ?execution-only services? (so) borrowers need to know the mortgage product they want or be comfortable choosing for themselves.?
As always, be sure to research any online mortgage deal before divulging your personal information.