Lenox Financial Mortgage, founded by Mr. Jon Shibley in the year 1994, offers mortgage loans to its customers with no closing costs. It is situated in Piedmont Center Complex in Atlanta, GA. Lenox Financial Mortgage (LFM) provides online informations on various types of mortgages, interest rate specifications, credit, etc. that may affect the bottomline payment of the mortgagor. It helps its customers on the following issues:-

First time home buyers :- The highly skilled and experienced loan officers of Lenox Financial Mortgage are the ones to discuss about the loan particulars. They could guide the first time home buyers on :-

1. Amount of loan a home buyer qualifies for.
2. Specifications of loan products available to him.
3. Find out the best loan option available.

Understanding the Interest rates, Points and APR :-

1. Interest Rates :- It determines the initial rate for the calculation of the payment of the mortgagor. This payment is liable to change in accordance to the terms of the loan (namely, 15 years or 30 years for fixed rate mortgage or adjustable rate mortgage).
2. Points :- Points are fees (generally ranging from 1% to 4% of the loan amount) to the broker paid for processing the loan and getting an approval from the lender.

Lenox Financial Mortgage arranges broker for its customers where the brokerage is borne by the company only.

Credit details :- Lenox Financial Mortgage tries to educate its customers with the various details of credit for avoiding the various types of problems associated with credit reporting :-

1. Charge-offs,
2. Repossessions,
3. Late or nonpayment of credit cards,
4. Non-payment of taxes,
5. Filing for bankruptcy in the past seven years.

Proper understanding of Credit Scores Credit scores of an individual are structured according to the informations in his credit file ( history of repayment of the borrower, pattern of borrowing, etc.) which reflects his loan repayment potential. This acts as a major factor for loan approval and interest rate determination. High credit score of a borrower means less risk for a lender. Credit scoring is done based on the Processing of Loans :- Lenox Financial Mortgage (LFM) offers 3-step easy loan processing coupled with no cost programs :-

1. Process of loan approval starts just after a 20 minute interactive session between the loan officer and the borrower.
2. Loan is then forwarded to the lender for underwriting and stamp of approval. In most cases, a appraisal is done during this session and soon after that a title is ordered.
3. Processing department of LFM would contact the borrower for scheduling a closing date.

Locking of Interest Rates :- Locking of interest rate means that both the borrower and the lender are committed to a specific rate and the future fluctuation of interest rates would not affect their agreement. Generally, the locking period ranges from 15 to 60 days.

Products offered by Lenox Financial Mortgage are :-

1. Fixed Rate Loans

(a) 30 years Fixed rate mortgage :-
(i)360 monthly payments are to be made.
(ii)Rate remains fixed for the entire lifetime of the loan.

(b) 20 years Fixed Rate Mortgage :-
(i) Perfect for those who want to refinance and pay more money after a lag of certain period.
(ii)Ready to cough up 15% to 25% more than the 30 year one.

(c) 15 years Fixed Rate Mortgage :-
(i)180 monthly payments are to be made.
(ii)Ready to cough up 20% to 35% more than the 30 year one.

2. Adjustable Rate Mortgages (ARMS):-

These have variable rate of interests and consequently fluctuating payment amounts. One-year US Treasury Bill is mostly used index for ARM adjustments.

3. Interest only Loans :-

These provide increase in purchasing power, cash flow, etc. to the consumer. Various interest only loan types are :-

(a) 1 month ARM - INTEREST ONLY OPTION Interest rate on this loan is an aggregate of LIBOR index and a margin (equivalent to 0.125%). The margin will remain unchanged throughout the life span of the loan. Every month the index value will be adjusted and hence will cause the rate of interest to adjust.

(b) 6 month ARM - INTEREST ONLY OPTION Interest rate on this loan is an aggregate of LIBOR index and a margin (equivalent to 0.125%). The margin will remain unchanged throughout the life span of the loan. Every 6-month the index value is adjusted and hence causes the rate of interest to adjust.

(c) 3 YEAR ARM - INTEREST ONLY OPTION For the first 3 years the rate of interest remains unchanged. From 4th to 30th year interest rate on this loan is calculated as an aggregate of LIBOR index and a margin (equivalent to 0.125%). The borrower is given an interest payment option during the first five year and then requires to pay only the principal and interest fro the 6th to 30th year.

(d) 5 YEAR ARM - INTEREST ONLY OPTION For the first 5 years the rate of interest remains unchanged. From 4th to 30th year interest rate on this loan is calculated as an aggregate of LIBOR index and a margin (equivalent to 0.125%). The borrower is given an interest payment option during the first five year and then requires to pay only the principal and interest fro the 6th to 30th year.

4. Monthly Treasury Average Index (MTA)

Interest on the loan is an aggregate of MTA index and a margin. The margin will remain unchanged throughout the life span of the loan. Every month the index value will be adjusted and hence will cause the rate of interest to adjust. Adjustable Rate Mortgage based on Monthly Treasury Average Index provides the borrower with various payment options :-

Minimum payment option.
Principal and interest payment option which is adjusted on a monthly basis.
Only interest payment option.

5. Home Equity Loan :-

Home mortgage refinance loan is such a loan where the owner of the home borrows money from lenders by guarantying their house. Its takers are generally those people who want to borrow huge sums of money by keeping their house as guarantee. Home equity loans are advantageous because of the following reasons:-

1. Low interest rate
2. Qualifying for home equity loans are relatively easy
3. Payments made towards home equity loans may be considered for tax deductions
4. Large sum of loans can be taken by the borrower's
5. Lenders prefer equity home loans and consider this to be safer than others because when the collateral is in form of the house then the debtor cannot disappear with the same. Thus, it gives the creditors ample chance for collection of debts.