Mortgage Brokers

Advantages of a Mortgage Broker and Mortgage Lenders: Mortgage brokers are companies or individuals that work closely with wholesale mortgage lenders to provide their customers with a wide selection of mortgages. A mortgage broker originates loans while the mortgage lender actually funds the loans. Banks normally offer only a small number of loan options to their customers. Mortgage brokers on the other hand, deal with a vast number of mortgage lenders. This increases the variety of loans that can be offered to a mortgage company's customers. This also enables the mortgage company to find the ideal loan for their customers' needs.

A Mortgage broker is knowledgeable about the entire loan process and are able to use their superior knowledge to help their customers secure the best loan to fit their needs. A mortgage company first tries to find out as much as possible about the needs of their customers and then looks at all of the available mortgage programs. Another big advantage to using a mortgage broker is that they deal with mortgage lenders from across the nation. This helps to guarantee that the customer will have complete access to the most competitive rates and options that are available.

Advantages of using a Mortgage Broker instead of a local bank

• Offer a larger variety of mortgage options
• Normally offer the most competitive rates nationwide
• Mortgage brokers only deal with mortgage loans, so the are highly specialized
• Highly motivated to get their customers' loans approved

There are many reasons why a large percentage of loans today are originated through mortgage brokers or a mortgage company. A Mortgage broker is highly motivated because they normally only get paid when their customer is approved for a loan. They also know which mortgage lenders have the lowest rates and which have the most relaxed underwriting standards. In general, mortgage companies can do a better job of searching around for a mortgage than their customers who do not have enough time to research the matter properly.

To find a reliable mortgage broker that will help you locate the best rates as well as find the best type of mortgage for you, fill out an advice form or call 800-930-9201. A specialist will help you find a mortgage broker as well answer any questions you may have.

You can also get advice about other financial options, such as a 1031 like-kind exchange. The 1031 Exchange (also called a like-kind exchange) gives you tax advantages when buying and selling property. Find a Mortgage broker or use a specialist. Visit the Mortgage Bankers Association if you are a lender.

Mortgage Research Center - 1031 Exchanges

This site is designed to help educate you about a variety of financial information including ways to save money on your mortgages but it also has a plethora of other financial advice. For example one huge tax benefit the IRS has created is a 1031 exchange. These exchanges are applicable to investment properties of "like-kind".

Essentially a 1031 Exchange allows you to buy and sell a piece of property and then use the proceeds of this transaction to purchase another property without paying taxes on the profit. You will be responsible for taxes when you sell the next property (assuming you do not do a 1031 Exchange on it). However, most of the time the taxes are incurred at a Capital Gains tax rate as long as the property was held for a certain period of time.

IRS 1031 Page - Get official information from the IRS page. It includes additional information on how to take advantage of the 1031 Exchange. It refers to the Internal Revenue Code Section 1031 (which is where a 1031 gets is name). It says that if one is executed on like kind properties, the IRS recognizes no loss or gain

If you own investment property and would like to learn how you can take advantage of these tax benefits (whether you own land, rental, or business property), you can contact one of the representatives at our office or you can visit the official IRS page as listed above. You can get more information on what you need to do if you are an "Exchanger" to ensure you abide by the tax code (including whether you need to use a "Qualified Intermediary").

Like-Kind Exchanges - Real Estate Tax Tips

Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.

Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

Like-Kind Property

Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.

Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.

Additional Resources

• Publication 544, Sales and Other Dispositions of Assets
• Form 8824, Like-Kind Exchanges (PDF)

Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.