Banking mortgage
By mortgage we means money lending i.e., loan in lieu of keeping papers of movable or immovable properties or both of the borrowers by the mortgage companies. There are several types of Banking Mortgage s such as 1st Party mortgage, 2nd Party mortgage & 3rd Party mortgage. The mortgage by the bank is called Banking mortgage. Most banks prefer first two types of mortgages due to enhanced securities for their money that they sanction to the people. Banking Mortgage s includes both commercial and non-commercial mortgage loans.
Categotries:
Depending upon the interests rate, Banking Mortgage can be delineated into two categories:
1. Fixed rate mortgage: A fixed rate banking mortgage means mortgage loans with a fixed rate of interests throughout the loan period.
2. Adjustable rate mortgage: Adjustable rate Banking Mortgage implies mortgage loans with a initial fixed rate of interests for some years and diminishing or increasing interests rates in the remaining years of the loan period.
Leading Banks such as HSBC, Bank of America, GE Finance, ABN Amro Bank etc. provides both fixed & adjustable rate mortgage loans.
Banks:
There are several banks that provide mortgage loans to the people of USA . Some of them are:
1. State farm bank:State Farm Bank is offering home mortgage loans in all the 50 provinces of USA since 1998. The contact address of the bank is:
State farm bank , Corporate South, N-4 3 State Farm Plaza, Bloomington, Illinios 61791Phone: 1-877-734-2265(Toll Free).
Some of the main mortgage loans offered by the bank are:
The fixed rate mortgage loan of the State Farm Bank has the following salient points:
1. The minimum & maximum limits of fixed rate mortgage loan are $25,000 and; $650,000 respectively,2. Fixed rate mortgage loans for the periods 10, 15, 20 &; 30 years,3. The APR (Fixed) for the 10, 15, 20 &; 30 years fixed mortgage loans are 5.312%, 5.448%, 5.525% and 5.919% respectively,4. Mortgage loans can be utilized only for purchasing new homes &5. No processing fee for the fixed rate mortgage loans
b. Adjustable rate mortgage (ARM) loans:
The adjustable rate mortgage loan of the State Farm bank has following features:
1. Minimum & maximum caps for adjustable rate mortgage loan are $25,000 and $650,000 respectively,
2. Adjustable rate mortgage loans are for short period such as 3 &; 5 years,
3. The APRs (variable) for 3/1 & 5/1 years adjustable mortgage loans are 7.096% and 6.813%,
4. The APRs (variable) are market based rate and can change at any time,
5. Adjustable mortgage Loans can be utilised only for purchasing new home for non-commercial use,
6. No processing fee for the adjustable rate mortgage loan &
7. Different APRs (Variable) applicable for the jumbo ARM loan.
2. HSBC INC, USA: HSBC bank is a leading Multinational bank with its operation in more than 50 countries worldwide. HSBC Inc, USA is located at Newyork province of USA and its branch offices located in more than 15 provinces of USA. HSBC is engaged in several banking operations such as banking, Internet Banking, commercial &; non-commercial loans,mortgage loans, Equity line of credits etc.
Some of the main mortgage home loans of HSBC bank are:
a. Fixed mortgage home loan: The fixed rate home mortgage loan of HSBC has following important points:
1. No minimum limit for the loan & the maximum limit for the loan is $2 million,2. Mortgage home loans are for the 15 & 30 years period,2. The APRs (fixed) for the fixed mortgage loan for the period 15 &; 30 years are 5.644% and 5.401% respectively,3. Different APRs (fixed) for the loan amount ranging between $417,000 and $2 million,4. Fixed mortgage home loans can be utilised for both purchase and refinance purposes &5. No processing fee for the loan.
b. Adjustable mortgage home loan:
The adjustable rate home mortgage (ARM) loan of HSBC has following features:
1. No minimum limit & maximum limit for ARM home loan is $2 million,2. ARM loans are for 3, 5, 7 & 10 years period,3. The APRs (variable) for the 3/1, 5/1 are 5.298% and 5.628% respectively,4. APRs (variable) are market related rates and may vary depending upon the market results &;5. Minimum locking period for the ARM loan is 2 months.
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