Amortization schedule easily obtained

MAILBAG

January 16, 2000

In the last few weeks I've gotten a few questions on mortgages. The first concerns how to get an amortization schedule for a loan, and the other is whether there is a standard form or document to be used when applying for a second mortgage.

A mortgage amortization schedule lists each monthly payment during the loan term and shows how much is principal and how much is interest.

A homeowner's bank or mortgage company may provide an amortization schedule for a loan free of charge or for a small fee. Software to create amortization schedules can be downloaded from several Internet Web sites. An amortization schedule also can be obtained online at www.mortgage-calc.com.

As for a second mortgage, many lenders use a Uniform Residential Loan Application form for all residential mortgage loans. This four-page application is used for residential loans financed through Freddie Mac and Fannie Mae.

Fannie Mae and Freddie Mac buy mortgages issued by banks, thrift institutions and other mortgage lenders, and then package the loans and sell them to investors as mortgage-backed securities.

When Fannie Mae and Freddie Mac buy the mortgages from lenders, they provide the lenders with the cash needed to issue new mortgages.

The application requires the borrower to supply information on:

1. The type of mortgage and term of the loan.

2. The property and purpose of the loan.

3. Borrower's address, Social Security number, age and education.

4. Borrower's employment information.

5. Borrower's income and housing expenses.

6. Borrower's assets and liabilities.

7. Amount of loan and use of proceeds.

Fannie Mae maintains a Web site that gives detailed and useful information about the mortgage-application process.

The information includes a mortgage-application checklist explaining the types of information and records you will have to supply to the lender as part of the application process.

You can visit this Web site at www.homepath.com.

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