Online Mortgages Can Be Easier, Cheaper

July 9 -- If you are still waiting for rates to drop even further before you purchase a home or refinance your current mortgage, it is time to stop waiting and take action.

Rates ticked up to 5.4 percent on a 30-year fixed loan last week (up from 5.24 percent the prior week), but don't be discouraged by the increase. Rates are still extraordinarily low, and right now is still an excellent time to purchase or refinance a home.

The Mortgage Bankers Association of America estimates that mortgage originations will total $3.3 trillion in 2003, 68 percent of which will represent refinanced mortgages. In fact, the MBAA estimates there will be 11.5 million refinancing applications this year worth almost $2 trillion in loans, up from 8.5 million applications worth $1.4 trillion in 2002.

With the boom in refinancing and home buying, more and more institutions, especially those online, are getting into the mortgage business, so you may want to look beyond your local bank or lender for the most competitive financing package.

With a multitude of options, which are the best offers, and more importantly, which are the most legitimate? There are several reputable providers offering access to a variety of lenders and/or financing packages. Here are some online mortgage sites with good offers.

E*TRADE

E*TRADE Financial (etrade.com) is now offering, for a limited time, a portable mortgage product known as "Mortgage on the Move" for loan amounts between $60,000 and $1,000,000. It enables home buyers seeking 30-year fixed mortgages to take advantage of today's historically low rates by locking in a rate now and carrying it with them to their next home purchase.

Traditional mortgages require homeowners to take out a new mortgage with every new purchase, meaning they have to re-qualify and re-negotiate for a new rate. With "Mortgage on the Move," E*TRADE will offer you a second mortgage at the same rate as your first mortgage if your next home purchase is more expensive than your first mortgage.