ING direct re – initiate the private mortgage loan
Ever since the housing market crisis, and credit crisis, the availability of loan is less and less. Bankers don’t have confidence to lend out money again to borrowers, and borrowers are so afraid that might have to file a bankruptcy if they don’t default on their loans. Federal government writes about 9 percent of mortgage loans. Some people might think that they are dealing with private lenders, but those private lenders can sell their loans on hand to federal government entities such as Fannie Mac, and Freddie Mae.
ING direct is a unique online banks which re – open the market for private mortgage with 5/1 ARM, which the interest rate is around 3.99%. The is set of interest rate is lower than the market interest rate so far. One of the requirement for this ING direct Loan is that you must have a down payment or equity of 25 percent. Some people might not be able to pay that much, but it is a way the ING trying to avoid the risk of default in the future. Also, you are required to pay half of your payment every 14 days. It can be helpful to get you out of debt much quicker.