Reverse Mortgages: Information You Need to Know
Reverse Mortgages are exploding in popularity and as the baby boomers reach age 62 and beyond they will become eligible to cash in on their home equity with a reverse mortgage.A reverse mortgage is a home loan that you do not have to pay back for as long as you live in your home. It can be paid to you in one lump sum, as a regular monthly income, or at the times and in the amounts you want. The loan and interest are repaid only when you sell your home, permanently move away, or die. Who is eligible for a Reverse Mortgage?All homeowners must be at least 62 years old. At least one owner must live in the house most of the year.
What kind of homes are eligible for a Reverse Mortgage? Single family, one-unit dwellings. Two-to-four unit, owner-occupied dwellings. Some condominiums, planned unit developments or manufactured homes.NOTE: Cooperatives and most mobile homes are not eligible. How does a Reverse Mortgage work?Most require no repayment for as long as you live in your home. They are repaid in full when the last living borrower dies, sells the home, or permanently moves away.
Because you make no monthly payments, the amount you owe grows larger over time. By law, you can never owe more than your home's value at the time the loan is repaid. You continue to own the home, so you must pay the property taxes, insurance, and repairs. If you fail to pay these, the lender can use the loan to make payments or require you to pay the loan in full. How do you receive money from a Reverse Mortgage and how much money can you get?Reverse mortgages can be paid to you: - All at once in cash; - As a monthly income; - As a credit line that lets you decide how much you want and when; - In any combination of the above.
The amount you get usually depends on your age, your home's value and location, and the cost of the loan. The greatest amounts typically go to the oldest owners living in the most expensive homes getting loans with the lowest costs. Most people get the most money from the Home Equity Conversion Mortgage (HELM), a federally insured program. What are the different type of Reverse Mortgages available?Loans offered by some states and local governments are generally for specific purposes, such as paying for home repairs or property taxes. These are the lowest cost reverse mortgages.
Loans offered by some banks and mortgage companies can be used for any purpose. How much does a Reverse Mortgage cost? The costs for loans from banks and mortgage companies usually include the following: - Application fee - Insurance - Origination fee - Monthly service fee - Closing costs - Interest These costs are usually added to the loan balance (what you owe). HECM loans are almost always the least expensive reverse mortgage you can get from a bank or mortgage company, and in many cases are significantly less costly than other reverse mortgages. Reverse mortgages are most expensive in the early years of the loan and generally become less costly over time. Before getting a reverse mortgage other than a government or HECM loan, carefully consider how much more it will cost you.
What else should I know about Reverse Mortgages?The federal government requires you to see a federally-approved reverse mortgage counselor as part of getting a HECM reverse mortgage..
Allen Daniels offers a Free Online Video about Reverse Mortgages that shows you How to Cash in With Reverse Mortgages. You can view the video at http://www.ReverseMortgageTips.com/Interest-only Mortgages Have Their Pitfalls
Rising home prices, particularly on the East and West coasts have put the costs of home ownership seemingly beyond the reach of many. And yet, home ownership is up nationwide, and the percentage of Americans who own their homes is the highest it has ever been. How is this possible?There are more different types of mortgages available to home buyers than ever before, and one that is growing in popularity is the interest-only mortgage. With an interest-only mortgage, the buyer pays no principal for the first few years of payments. The period of time varies, and is typically anywhere from one to five years.
At that time, the principal is added to the mortgage payments and the amount of the payment increases. By keeping the payments lower for the first few years of the mortgage, the interest-only mortgage allows buyers to obtain a more expensive home than they otherwise might. The buyer's income will probably increase over time, making it possible to afford the higher payments that...
Interest-only Mortgages Have Their Pitfalls
Mortgages > Interest-only Mortgages Have Their Pitfalls
Latest Inflation Numbers A Threat To Adjustable Rate Mortgages
Washington, DC (ContentDesk) April 21, 2006 -- The US Bureau of Labor Statistics announced that the Consumer Price Index for
All Urban Consumers (CPI-U) increased 0.6 percent in March, before seasonal adjustment, an annualized rate of 7.4%.Oil prices also closed at a record $72.17 on the New York Mercantile Exchange. With supply constraints in the Gulf of Mexico, Iraq, and Nigeria, analysts are expecting oil prices to continue trending higher throughout the summer.Oil futures contracts for the next 3 years are all trading above $70 per barrel. "In effect, the market is saying this is going to be with us for a while," said A.G. Edwards & Sons commodity analyst Bill O'Grady.With oil prices heading higher, most experts expect inflation rates to remain at current levels, or trend slightly higher, putting more upward pressure on home mortgage rates.
In the most recent decade, because of an environment of falling interest rates and inflation, many people who refinanced their...
Mortgages > Latest Inflation Numbers A Threat To Adjustable Rate Mortgages
Bad Credit Mortgages - Can You Get One?
Copyright 2006 Geoff Morris
In this day and age, people get bad credit histories for all sorts of unforeseen reasons, apart from the old standard of living above one's means.
I know several people who have got into difficulties through either redundancy, prolonged illness or a car accident, divorce, or in fact one luckless fellow had all three situations arise.
Is it possible to get a loan even with a bad credit mortgage? In today's mortgage and loan trends, a bad credit mortgage is absolutely possible.
In the past, applying for a loan involves a thorough check up on your credit history and income background. With the world wide web, it is virtually impossible to hide any defaults. If your history is less than perfect or if your income is not that high or both, then your application for a loan is instantly rejected. This practice limits the number of people who can apply for a loan.
Today's market has adopted more flexible...
Mortgages > Bad Credit Mortgages - Can You Get One?
What are "interest only" mortgages?
Mortgages are considered to be "interest only" if your monthly payment does not cover the entire loan payment due, that is the mortgage interest and a payment to decrease the loan principal. Every month you are paying the interest only and this means that the loan is literally not going away. The purpose of setting up an interest only loan is to give the customer the lowest possible monthly payment while still maintaining the loan.Cannot afford the full monthly payment?If you are in a position where you cannot afford the full monthly payment, a lender might allow you to pay the mortgage interest for the first couple of years and then the loan will be fully amortized at a future date. If you do get an interest only mortgage try to make the interest only period as short as possible. Make a projection: can you pay two years into the loan?If you cannot get out of the interest only cycle within a year or two then perhaps you are not in a financial situation where you can handle a mortgage....
What are "interest only" mortgages?
Mortgages > What are "interest only" mortgages?
Essence Of Self Certified Mortgages
Your search for a mortgage isn't leading results.Check for any impediments. May be the lenders dread offering credit on the grounds that you are self employed.But are you alone in the pursuit? No. The statistics put the figure of self employed people at around three million. Add to this the people who are working freelance and those working as temporary hires. They too are denied mortgages on the same grounds as a self employed.If the mortgage companies continue with this step motherly attitude towards such a vast group of population, it is not late when they lose plenty of their business.And what are the grounds for such denial.
The most basic reason is that these persons do not have a stable income. The self employed persons, for instance, earn a lot one month, and nothing in another. This increases the chances of a default or arrears. Second reason for not allowing them an access to mortgages is that they get their income from varied sources, thus making the computation of...
Essence Of Self Certified Mortgages
Mortgages > Essence Of Self Certified Mortgages
Poor Credit Mortgage Reigns High Among Mortgages Available to Bad Credit Borrowers
Like a big brother keeping notes of the erring behaviour of his younger sibling, credit reference agencies like Experian and Equifax maintain a record of each person entering into credit transaction. While a few instances of arrears are considered admissible, as the incidence of bad credit behaviour increases, creditors start considering these as a lack of reliability. These people are termed as having a bad credit history. Of all things, the ability to get a reasonable term mortgage is particularly affected by a bad credit history. Opinions differ on the extent up to which credit report must be allowed say in deciding the candidature of borrowers for mortgage.
The first group says that a borrower with a bad credit history cannot be relied to repay the mortgage lent on the basis of their past records. Thus, it will be wise to refuse mortgages to such borrowers.The other group of lenders believe that taking a moderate degree of risk while dealing with bad credit borrowers will...
Poor Credit Mortgage Reigns High Among Mortgages Available to Bad Credit Borrowers
Mortgages > Poor Credit Mortgage Reigns High Among Mortgages Available to Bad Credit Borrowers
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Seattle Author and His 'Time-Traveling' Son Ask Young Americans to Make a Choice: "To Live a Life of Purpose”
(ContentDesk) January 6, 2006 -- Author and photographer Michael S. Class has used advanced digital photography to place his twelve year-old son, Anthony, in the cockpit of the Spirit of St. Louis with Charles Lindbergh, on the moon with Neil Armstrong, and on Normandy beach on D-Day.Father and son labored for nearly four years in their garage filled with props from an army surplus store; the garage walls were covered with blue bed sheets. The result: It looks like Anthony really did meet Thomas...
Mortgages Reverse Mortgages: Information You Need to Know life insurance
Mortgages > Seattle Author and His 'Time-Traveling' Son Ask Young Americans to Make a Choice: "To Live a Life of Purpose”
Stress Relief at the Click of a Button
Erica Brooks, owner of the successful online bridal shop, Stress Away Bridal Shop, has launched Stress Away Bath Shop, an upscale online bath and body retailer offering high-quality, natural skin care, bath and body products and information. The site www.stressawaybathshop.com which was originally launched in 2002 has been recently updated to include the latest news and information on holistic health and beauty. Stress...
Mortgages Reverse Mortgages: Information You Need to Know Stress Relief at the Click of a Button
Mortgages > Stress Relief at the Click of a Button
How to Establish Business Credit Despite Your Personal Credit
Business credit is more of a science than an art. The first rule for this science is that it is not the same as personal credit.Many would-be and aspiring business owners are not aware that establishing credit for a business is just as important as establishing personal credit. They also do not realize that a business can have a credit score separate from their personal credit score.There is a world out there designed specifically for the business entity with a whole set of different rules. Many...
Mortgages credit report
Mortgages > How to Establish Business Credit Despite Your Personal Credit
What is Road Hazard Warranty? Do You Really Need It?
You are prepared to spend an average of $300 - $500 for new sneakers for you vehicle. It's a maintenance item that is not optional and then the salesperson asks you if you want to purchase the Road Hazard warranty."It's ONLY an additional $10 - $20 for each tire," he or she says. So, you're thinking, "Don't my tires come with a warranty already?"Great question! Most tires come with a warranty which covers workmanship and materials. In other words, the tire maufacterer covers things which are in...
tires Mortgages Reverse Mortgages: Information You Need to Know What is Road Hazard Warranty? Do You Really Need It?
Mortgages > What is Road Hazard Warranty? Do You Really Need It?
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