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Top Five Mortgage Lenders

loan fixed loans options

In the United States, there are literally hundreds of financial institutions that offer home mortgage loans. In the midst of these lenders, it can be difficult to find a home mortgage. Banks that offer home mortgages sometimes seem to be as numerous as the types of home loans available. However, in many cases the largest home lenders can sometimes offer the best services. While this is certainly not always the case and many people will find better options with smaller lenders, learning about the top mortgage lenders will provide a good starting point and general knowledge of the mortgage options for those who are looking for a home mortgage bank lender. In 2009, the top five mortgage lenders were, in order, Wells Fargo, Bank of America, JP Morgan Chase, Citigroup, and Residential Capital LLC. By examining what types of mortgages these companies feature, you will be able to get a good picture of the general options for home mortgage loans. While the options listed below with each company are only a portion of what that company offers, when put together a general picture emerges.

Wells Fargo offers a number of home loan options. Wells Fargo has several standard loan options. They have a 30 year fixed loan and a 30 year fixed with Federal Housing Administration (FHA) mortgage insurance for a slightly higher rate. They also have a 15 year fixed loan, as well as a 5 year adjustable rate mortgage (ARM) and a 5 year ARM with FHA mortgage insurance for a slightly higher rate.

Bank of America’s most frequent mortgages are 30 year fixed rate mortgages and 5 year ARMs. With both of these mortgage types, they offer both a standard loan and an interest only option. The interest only loan is a risky loan for many consumers, because the payments increase significantly after the first ten years of the loan. Unless you anticipate a significant increase in your property’s value (which is less and less likely in the current economy), then these options are usually not advisable.

JP Morgan Chase, the third leading mortgage provider in 2009, like the other lenders, features a 30 year fixed loan. They also have a 15 year fixed option. In addition to these fixed loans (and other options), they feature two ARM options. They have a 7/1 ARM and and 5/1 ARM. In short, these loans have either a 7 or 5 year fixed term after which the interest rate will be adjusted for current market condition. The 1 signifies that you have a 1% interest rate for 1 month (the first month).

The fourth leading home mortgage lender, Citigroup, emphasizes 15 and 30 year fixed loans. They are somewhat more conservative than the three companies listed above. The fifth leading lender in 2009, Residential Capital LLC, is on the opposite end of the spectrum. One of their featured loans is a 2/28 ARM. This loan has a fixed rate for 2 years followed by a 28 year period with an adjustable rate that could change every 6 months.

Although adjustable rates and risky loans are less common than they were in recent years, there are still many types of loans available from the major home mortgage banks. These general offering, along with many others, are available from many companies who should be able to help you find a home mortgage loan that fits your needs.

Home Mortgage Broker - Home Mortgage Broker - Features of Home Mortgage Broker Careers, Finding a Mortgage Broker - Careers, Options, and Services [next] [back] Home Equity Finance - Home Equity Loans and Home Equity Lines of Credit - What is a Home Equity Loan?, Home Equity Lines of Credit

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