Why Do Lenders Sell Loans?
When you first work with your loan officer very early on in the process, yoursquo;ll soon establish a trusting >
Soon thereafter, yoursquo;ll receive payment information indicating where you need to make your payments. And for most funded loans, yoursquo;ll also receive another letter informing you the lender you originally worked with has just sold your loan to someone else. Someone yoursquo;ve never worked with before and even to a company yoursquo;ve never heard of. What happened to that >
Among the many initial documents you signed when you first applied was a Mortgage Servicing Disclosure. This form tells you what percentage of the lenderrsquo;s loans are sold and more often than not the form indicates most if not all of the loans approved and funded by that particular mortgage company will be sold to someone else. But why? Why go through all the effort of originating, approving and funding a loan and forgo all the interest that new loan provides? Good question and an easy one to answer- if not for selling the loan, the lender would soon run out of money to lend.
Mortgage companies today work with a line of credit. Itrsquo;s not as if the mortgage company approves a loan and then opens up a vault full of money to fund your mortgage. Instead, when itrsquo;s time to fund your loan the lender taps into the line of credit for the needed amount to fund the new mortgage. In order to replenish this line of credit the lender then sells the loan to a third party. Once the loan is sold, the lender now has more funds to make still more loans. Who is the loan sold to? Many times, itrsquo;s to other mortgage companies but ultimately the loan is sold either to Fannie Mae or Freddie Mac.
The marketplace for all this buying and selling is called the secondary market for mortgages. This secondary market is robust and active and keeps the mortgage market liquid. Without a secondary market, there would be fewer loans issued and still fewer choice. When your loan is sold itrsquo;s not because your original lender isnrsquo;t loyal to you or doesnrsquo;t appreciate your businesshellip;itrsquo;s to stay in business so the lender can make even more loans.
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The Tell Tale Signs it is Time to Sell Your Residential Property
Insufficient Living Space - A growing family, for example, would require more living space as the children grow and if one of your kids doesnrsquo;t have a room they can study in, perhaps it is time to upgrade. This would typically arise for a newly married couple around 10-12 years in the future, and this time is enough to ensure that their financial status supports the upgrade.If you are looking to upgrade, be sure to find a suitable contractor who will offer a fair rate.
Canrsquo;t Afford The Mortgage Repayments - If you made the mistake of buying a property out of your budget limit, the best thing might be to put it on the market. If the house is in a prime location and is in good order, you might be lucky and make a profit on the deal, although your objective should be to downsize to a comfortable level.
The Long Daily Commute - If you are spending more than one hour travelling to or from your place of work, this could be the time to look at >
Looking To Start Your Own Business - If you have a great business idea, yet do not have access to startup capital, selling your home will >
A Career Promotion - If you suddenly are offered a promotion that would mean >
Whatever the reason for selling, it is essential that you engage the services of an experienced conveyancing lawyer, who will facilitate the legalities and can help you to calculate your total costs.
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17 Ways to Increase Your Storage Space
1. Between the studs
Put the space between studs to work by tucking open display shelves into walls. They donrsquo;t have to be outdated arched niches. Create clean rectangles or squares. To keep things looking tidy, add doors on the front. Or use piano hinges to mount artwork so it can swing open to reveal hidden storage space. You can even recess narrow drawers into the space.
2. Nothing wasted, something gained
Use space that otherwise would be wasted. Under the stairs is a perfect example. For smaller budgets, add a door to the side and use it like a crawl space, says interior designer Vanja Stepanek of Barbini Design Build in Toronto. Finish the space with shelves and hooks. For those who have more cash, each riser can house a drawer. It is a more expensive project because yoursquo;re working with the structure of the stairs, she says.
If you have a staircase thatrsquo;s open underneath, turn that unused space into a home office by tucking a desk and some cubbies, shelves or file cabinets underneath.
Put the space beside the fridge or between the washer and dryer to good use by building narrow shelves on wheels.
Build a headboard that includes storage space, add a long floating shelf above the headboard or use rows of floating shelves above bedside tables to create extra display space.
3. Look up
Install shelves above doorways to store stuff without using up floor space. Continue the shelving around the room, including above windows and doors to create a loft library.
4. Over or behind
Use over-the-door hooks for extra hanging space. Or add a shoe storage system behind the door. Build floor-to-ceiling shelves in unused spaces, such as behind the toilet or on a wall behind a door.
5. Functional into fab
Stepanek says her friend lives in a typical small downtown condo. It has a long narrow hallway with a bathroom and bedroom doors on one side and the living/dining room at the end of the hall, with large windows beyond. The loft has high ceilings, so Stepanek installed two rows of floating shelves along the full length of the hallway the side without doors. Stepanekrsquo;s friend loves shoes and purses, so the shelves give her the perfect display space for her wearable treasures. It looks cool but provides practical storage space, she says. Art depicting different periods of shoes hang under the shelves to create an art wall. Antique lighting completes the stylish look.
6. Focal point and fun storage
A long basement hall, which had numerous doors along its sides and one at the end, had no focal point. The door at the end of the hall was replaced with a bookshelf on hinges. The bookshelf creates visual interest and storage/display space. Plus the kids love having a hidden room behind, Stepanek says.
7. Lift it up
Where ceiling height allows, put a bed on top of a custom platform. Or build a stage for children. Drawers within the platforms can house camping gear, seasonal items and other seldom-used items.
8. Double duty
An office can do double duty as a guest room by adding a wall-to-wall unit that includes a Murphy bed. Add a desk on the opposite side of the room.
9. Down under
Like building niches between the studs, add storage space between the joists in the floor. Build a box or cabinet to stow stuff.
10. No monsters under the bed
Use baskets or zippered plastic storage bags to use under the bed. Or buy a bed with drawers built in. Another option is a mattress that lifts up on hinges to make under-bed storage more accessible.
11. New uses
In the hallway, switch out a table for a dresser that will provide drawers to store everything from hats and mitts to keys and mail.
12. Double up
A chest that doubles as a coffee table, vintage suitcases stacked beside the couch or bed and ottomans all offer storage space within.
13. Kick off
Toe-kick drawers in the kitchen are great for storing cookie sheets, cutting boards and wire cooling racks.
14. Air space
Floating shelves offer display space. Or hide away items in pretty boxes or baskets for a neater look. Think vertically to find more usable space.
15. Clutter be gone
Before you cram your new-found storage space, try decluttering. Keep only what you need and what you really enjoy. Pace yourself and tackle one job at a time. Donrsquo;t expect to do everything in one fell swoop. Mix smaller, easy decluttering projects, like cleaning out your medicine cabinet or makeup drawer, with bigger tasks such as tackling your clothes closet.
16. Map it out
Figure out what you want to store, which room to store it in and what kind of storage you need before you knock holes in the walls.
17. To the garage
Shelves that hang from the ceiling above the car are one solution. Garage systems, which include tool storage, a place for garbage and recycling and lots of space for plastic storage totes, can make the most of your garage space. Again, think vertical storage.
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