Mortgage Processing Temp Services  

Recent Published Articles  

FREE MLS ACCESS!

1. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
2. How is an index and margin used in an ARM? Answer
3. How are the Fed Rates and Mortgage Rates related? Answer
4. Does Mortgage Madness, Inc. have a contract mortgage processing service? Answer
5. Does Mortgage Madness, Inc. have a mobile notary division? Answer
6. What is the Equity Acceleration Program? Answer

Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
 
Q : How is an index and margin used in an ARM?
A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
 
Q : How are the Fed Rates and Mortgage Rates related?
A : When the Federal Reserve lowers the Fed rate, it is lowering the short-term rate only.  Mortgage rates are long-term rates so they are not directly affected.

The path to lower mortgage rates is tied to inflation.  Most mortgages are sold to Fannie Mae and Freddie Mac.  They get the money to buy mortgages by selling bonds to investors from around the world.  Interest rates on the mortgages have to be good enough to entice the investors to buy the bonds.

Investors want a better return for their money than the future inflation rate.  So the mortgage rates have to be higher than the rate of inflation to make investors want to buy bonds.

The Fed lowers its rate to stimulate buying.  Buying can raise inflation.  If the investors feel that inflation is on the rise, they will not invest in the Fannie and Freddie bonds unless the mortgage rate is higher than inflation.  Thus mortgage rates will rise.  If the economy slows and inflation is low, then the mortgage rates will fall.

 
Q : Does Mortgage Madness, Inc. have a contract mortgage processing service?
A : YES!  Mortgage Madness, Inc. will work with other Mortgage Brokers and Lenders nationwide to outsource mortgage processing.  The company has over 20 years combined processing and underwriting experience.  Avoid advertising, hiring, and training processing staff as well as benefit from NO employee taxes, NO sick/vacation/materinity leave by not hiring a staff! 

$450 flat processing fee for all loans processed and closed.

$50 flat fee for all loans that go through the processing cycle but do not close.

 
Q : Does Mortgage Madness, Inc. have a mobile notary division?
A : YES!  Mortgage Madness, Inc. has a staff to assist Attorney's and Title Companies with closing loans.  The notary will close the loan in the privacy of the borrower's own home or business.  Call today for pricing
 
Q : What is the Equity Acceleration Program?
A : Biweekly Mortgage