Understanding Mortgages

Whilst most people aspire to own a home of their own, there are many who, through no fault of their own, do not have a clear understanding of mortgages. In this respect there is an interesting article in the Real Estate columns of the New York Times, explaining how the Bank of America is endeavouring to enlighten and help their mortgage customers.

Of course there is already plenty of mortgage related advice available from various sources, but anything that is new, and born out of recent problems in the housing market is welcome. It is always good to know that the information you are seeking is up to date. This applies to the financial services sector in general and the mortgage industry in particular. After all a home of their own is the biggest single investment that many people will need to make. Therefore, any assistance to understand how the various mortgages fit in with personal circumstances will be particularly welcome.

An extract from the New York Times is reproduced below, and those who are interested in learning more about mortgages are invited to click the heading to read the full article:

An Emphasis on Simplicity

"SOME good may come from the home-foreclosure crisis. While the federal government imposes industry wide changes, at least one major lender has instituted improvements of its own.

Bank of America recently introduced three service improvements: a Web site to help consumers choose loans more intelligently, a disclosure document that explains loan terms more simply, and a loan with an all-inclusive closing fee. The company last month shuttered Countrywide Home Loans, which it acquired in 2008, and formally absorbed that business into a newly branded division, Bank of America Home Loans.

“We wanted to change the conversation to ‘How much house can I comfortably afford?’ rather than ‘What’s the maximum I can buy?’ ” said Aditya Bhasin, the product, pricing and strategy executive for Bank of America Home Loans.

Once would-be borrowers type in their financial information, the Web site offers “sliders” that show how the loan picture might change, say, if they reduced their monthly credit card debt."

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understanding mortgages
understanding mortgages