ditech

ditech

Introduction

Ditech was founded in 1995 as one of the first online lenders. The name, which the company does not capitalize, is derived from the phrase "direct technology."

In 1999, ditech was acquired from its original owner by GMAC, later known as Ally Financial. It became known for a high-profile advertising campaign in which rival lenders would moan that they "lost another one to ditech." Both ditech and parent GMAC/Ally suffered heavy losses when the housing market crashed and Ally eventually shuttered the brand before selling it to Walter Investments/Greentree Originations in late 2012. Ditech resumed residential mortgage lending operations in May 2014, both through online lending and affiliated correspondent lenders.

Mortgage Rates

Mortgage rates are available at both fixed and adjustable mortgage rates. Fixed rates can be set at 15- or 30-year mortgage rate loans. The 30-year mortgage rates are higher in the long run than 15-year mortgage rates. However, the monthly payment on a 30-year mortgage is lower than a 15-year mortgage. Fixed rate mortgage loans are amortized with a fixed interest rate for the life of the loan. A monthly payment schedule is based on the loan amount and interest to be paid. Monthly payments always remain the same.

Adjustable mortgage rates are loans that initially begin at a lower interest rate than a fixed rate. However, the interest rate may increase over time. If the interest rate increases the monthly payment will also increase. Adjustable mortgage rates are only advantageous as long as interest remains low.

Refinance

It is sometimes prudent to refinance if interest rates decrease. If the borrower has an adjustable rate loan and the interest rate increases then refinancing may be an advantageous way to lower the interest rates and lower the monthly mortgage payments. Refinancing may also be a good strategy for borrowing on a fixed mortgage if the interest rates decrease. A borrower may be able to consolidate first and second mortgages, as well as pay off additional debts if the borrower has enough equity built up in the home to borrow additional funds. By consolidating existing mortgages as well as other debts such as credit cards, the borrower will be able to lower rates across the board and make a single monthly payment rather than multiple payments.

Home Equity

Home Equity Loans, also known as home equity lines of credit (HELOC) have become a good way for homeowners to borrow additional money against the equity of their home. Borrowers may get a fixed or adjustable rate on HELOCs. The benefit of a HELOC over a second mortgage is that a borrower can determine how much to borrow at any given time. Borrowers may get a HELOC based on the equity of their home, but the borrower does not have to use the entire line of credit. This is another great way to lower interest rates, consolidate bills, and make fewer monthly payments to creditors.