In the US the benchmark rate is set by the Federal Reserve which is the interest rate the banks pay when they borrow money. As you might know,banks have a certain amount of money on reserve, but when they need more,they have to borrow money over a very short term (that can be very short,like one night!).
That explains why the term is so valuable.
Banks and mortgage companies seek out people who might need a loan. Banking makes it's money on loans, it's just a valuable business to be a part of when there are lots of customers.
Benchmark Lending Group
BLG is a direct mortgage lender, enabling you to quickly secure a new home mortgage or refinance your existing one. They offer a broad range of mortgages that ensures they can provide you with a solution that is specifically tailored to your needs.
They offer:
- 10, 15, 20 and 30 Year Fixed Rate Loans:
The monthly payments and rates for these traditional loans stay the same during the entire loan term. And If principal reduction payments are made, your term will be reduced.
- Fixed for 7 Years (30/7)
The 30/7 loan is great for people who want the security that a fixed-rate loan offers but who are also attracted to the lower interest rates of an adjustable rate loan. The 30/7 loan has a 30-year term and a low fixed rate for seven years. At the end of the fixed-rate term, you have the option to convert to a fixed rate for the remaining 23 years, based on interest rates at the time of conversion.
Choose this type of loan:
o If you intend to keep your home for longer than 10 years
o If long-term stability is more important than payment amount
o If you do not anticipate using your home equity during the term of the loan.
You can read more about it on the BenchmarkLendingsBlog
BenchmarkLendingsBlog
Article Source: http://www.EzineArticles.com/?expert=Jamie_De_D
More Resources on Benchmark Lending
HOMESIDE LENDING, INC.: Labor Productivity Benchmarks and International Gap Analysis (Labor Productivity Series)
HOMESIDE LENDING, INC.: International Competitive Benchmarks and Financial Gap Analysis (Financial Performance Series)
Fair Lending Examination Procedures Guide
Mortgage Lending Compliance Manual: Federal & State Guidelin
Residential Mortgage Lending: Principles and Practices
Subprime Consumer Lending
Commercial Lending Basics
Worldwide Directory Securities Lending & Repo
Real Estate Lending Compliance
Subprime Consumer Lending (Frank J. Fabozzi Series)
Credit Risk Assessment: The New Lending System for Borrowers, Lenders, and Investors
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