As with so many things the Internet has caused a drastic change in the way business is done in the home loan market. The changes include all types of home loans; new home loans, refinancing of existing loans, and home equity loans.
Generally the changes have benefited the borrower in that it is now very easy to log onto the net and find the best available home loan rates for any location. There are a number of home loan services that offer fast and easy comparison shopping. You can quickly receive free quotes from a number of lenders and select the best deal for you.
This would have been a time consuming process back in the old pre-sophisticated Internet days.
With the use of the Internet the home loan market is much more transparent. This has lead to better loan quotes and better loan servicing for you as a borrower. With computers (servers) tied into the Internet that have the ability to store vast data bases of information it is also much faster to process loans and disburse funds than in the old pre-Internet days.
Is there a downside to all of this happy news about using the Internet to find home loan lenders and to process loans quickly?
Well, for many borrowers who lack self discipline, the answer is yes. The Internet has made it all too easy to use their homes as ATM machines and to use the appreciation in their homes as a means to extract equity almost without effort.
In a housing market with rapidity increasing housing values folks have become hooked on the easy access to credit and many have used their loan proceeds unwisely. Taking a fancy vacation with money taken from your home equity is not a great way to get ahead in this world. Nor is buying with home equity funds a ton of consumer goods that immediately decline in value a wonderful idea.
There are now troublesome signs that the boom in housing markets around the world was a bubble created by the US Federal Reserve’s overly easy money policies over the past few years. As the bubble deflates, as they always do at some over extended point, there will be a major impact on the world economy, lead by a great deal of distress in the United States housing market.
That doesn’t mean that the market for home loans and home equity loans found and processed using facilities on the Internet will stop functioning. When used for important purposes fast access to credit is a true blessing and will continue to serve prudent borrowers well. However, it’s a blessing not to be taken lightly.
Lenders expect loans to be repaid and that the terms of the loans to be respected. Those are conditions that the use of the Internet by borrowers and lenders have not changed.