|Mortgage Refinance Information|
Reverse Mortgages Learn The Facts First!
Reverse Mortgages, Most Common Features:
Many offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.
Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.
Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.
However, be aware that:
Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.
The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.
Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.
Getting a Good Deal.
If you decide to consider a reverse mortgage, shop around and compare terms.
Look at the:
Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.
Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount, which will be added to your loan balance and you'll owe more interest at the end of the loan. Total Amount Loan Cost (TALC) rates.
The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.
It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.
They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
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Homeowner Loans ? Drawing Lessons of the Past
Loans are not of a recent origin. People used to take help from others even at times when money was unseen and barter was the mode of trade prevalent. However, the form of loans has changed over time. In those days the loans used to be offered in kind. Now, they are offered in money or in terms of money.
Home Equity Loan ? Home Theater Adds Fun and Value
In days gone by, the family typically spent their evenings watching television in the den or living room, crowded around a black and white television set that may have measured no more than nineteen inches in diagonal size. For decades, this scenario was pretty much the same in most American homes, with the only change being the replacement of black and white televisions with color models. This worked fine for many years, when most cities only had two or three stations, and most homes didn't have cable television. With the introduction of high definition television (HDTV), DVD movies, high performance surround sound systems, and affordable video projectors and flat-screen plasma displays, many homeowners would like to have a dedicated room, or home theater, for audio-video use. In today's housing climate, adding a home theater to your home is a smart move.
Home Equity Loan ? Not Just For Home Repairs, And Tax Deductible, Too!
Thanks to the combination of low interest rates and skyrocketing property values, home equity loans are more popular than ever. The value of home equity loans taken out by Americans has doubled in the last two years, and the market for them shows no signs of slowing down. Obtaining a home equity loan is usually a fairly simple process involving some paperwork, a credit check, and a home appraisal, and the entire process can often be done in just a few weeks. Lenders will often lend up to 80% of the value of the home's equity, and some lenders will even lend up to 125% of a home's equity.
Making Sense of Mortgage Speak
Applying for a home loan can be overwhelming. You will need to contend with mountains of papers, contracts, documents; and do lots of planning and coordination. Add to that a whole language unique to the mortgage loan process and you have the makings of an experience unlike any other.
Looking for home mortgage loans can get confusing with the alphabet soup of mortgage loans programs available today. Most of these programs are just variations of fixed rate and adjustable rate mortgage loans. These loans can be structured to meet your financial needs, and most are available in 15 or 30-year terms. Your long-term plans play an important part in selecting the right type of loan, use these general guidelines to help you as you shop for home mortgage loans.
Refinance Your Second Mortgage
A 2nd mortgage is a secured loan on your property, with your home serving as collateral. Depending on the particular terms of your second mortgage, you could be able to refinance if you wish to reduce your monthly payments or are in need of extra cash. Refinancing a 2nd mortgage can be an option for those who want to pay off their mortgage (excluding any home equity lines of credit), reduce the interest rate they currently pay on their second mortgage, or simply want reduce their monthly payments. Refinancing a 2nd mortgage can also be an option if the homeowner wants to pay off the mortgage, including home equity lines of credit, and receive cash.
Buying a Home when Rates go Up
Many people fret the rising tide of interest rates. You'll hear things like, "Did I miss the boat? Is it too expensive now to buy a home? How can I afford the house of my dreams? Maybe I should wait! Maybe I should just rent for a while! Maybe the rates will go down in a few weeks. "
Know Your Mortgage Options
While trying to find the lowest rates, many homeowners fail to examine the type of mortgage, and which type of mortgage is best suited to their needs. Whether you are buying a new home or refinancing, it is important to understand the different mortgage types, and evaluate which one best meets your needs.
Alternative Options For Rising Interest Rates
As interest rates have risen in the last six weeks from record lows, homeowners are once again face with finding viable options to reduce the amount of interest paid on their home loans. The rush to refinance provided borrowers with good to excellent credit the opportunity to take advantage of low interest rates, that helped to reduce their monthly mortgage payments, which was the only benefit provided by the lowered rates.
Home Mortgage Refinancing ? What?s in Your Contract?
Are you one of the millions of Americans who will be refinancing their home mortgage loan this year? When you sign your contract and the other papers for your refinance, will you know what your signing?
Poor Credit Home Mortgage Loans - The Role of the FICO Score
If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.
The Right Home Loan - Floating or Fixed Rate Loan
Choosing a home loan has never been tougher. Yes, with all these cheap interest rates floating around, you as a customer are faced with a happy predicament. The banker finally seems to be your friend. He calls you in the morning, day and evening. He remembers your name and offers you the best deal. He meets you and tries to convince you to take a loan to buy your dream home. And in cash if you have only a vague idea of your dream home, the banker friend might also help you decide on the property.
Kings Bay Saint Marys & Kingsland Georgia Real Estate - Getting a Home Loan with Damaged Credit
So, you have made the decision that you would like to become a homeowner. As lenders, we have to perform a credit check. The credit we review are provided by all three reporting agencies. Equifax, Experian and Transunion are the three agencies lenders use. The middle of all three beacon scores is the one used to qualify a borrower for a mortgage.
How To Choose Your Mortgage Loan
Are you excited about purchasing your first home? Or maybe this isn't the first, but you should be excited anyway! It's a big step and a big decision. Finding the right mortgage loan is key. The key to saving yourself money and probably a few headaches down the line.
Credit Problems? With a Subprime Mortgage Lender, Poor Credit is Not a Problem
Have you been turned down for a home loan recently because you have a bad credit history? You may want to consider applying for home financing with a subprime mortgage lender. A subprime mortgage lender is one who specializes in providing financing for people who are difficult for most mortgage companies to finances, it could be because of a low credit score, hard-to-prove income or a combination of those factors with no money to put down.
First Time Home Owner Mortgage Loans
First time home owners are sometimes surprised at the complexity of the mortgage lending process. If you are searching for a mortgage and you have never owned a home, there a few things you can do to make the mortgage process less confusing. First time home owners should educate themselves on the home-buying experience before contacting mortgage lenders. There are many choices in obtaining a first time home owner mortgage loan. Friendly mortgage professionals are available to assist you in making the right decisions.
Mortgage Sales Hit Problems
The housing market has been buoyant over the past few years, but mortgage providers and first-time buyers are both now facing a tough time. Following announcements from the Bank of England that there has been an overall decline in the total number of UK home-buyers, and a declaration from the Financial Ombudsman Service (FOS) that the number of disputes concerning mis-sold mortgage endowments has now hit record levels, it seems that mortgage lenders are facing a bleak time. Add to this the results of a new survey, by the Edinburgh Solicitors Property Centre, which shows potential first-time buyers fear that they may never get onto the property market, and you start to see a worrying picture of the housing market emerge.
Bad Credit Mortgage Refinance - Should I, Shouldnt I?
It is a common financial scenario across households in the Western world. Multiple debts have started to build up: a car loan here, a department store loan there; a bank loan here and several credit cards there. While all may have seemed manageable on the optimistic day you took them out, or spent on them, suddenly you realise that you cannot keep up with the monthly payments. You miss out on a payment or two, and suddenly you have a bad credit record. A few more missed payments and you start to feel the pressure, so start thinking about refinance.
A Home Loan Can Help You Own Your Dream Home
Owning your dream home need not just be a dream. You can own it with a home loan offered by any number of financial institutions to help meet the shortfall between the purchase price of the home and the down payment that you provide.
FHA Mortgage: Whats the Best Way to Show an Underwriter that Youre Ready to Buy a House?
Mortgage underwriters can be a suspicious bunch. If you have bruised or even bad credit, you have your work cut out for you. Many loan programs have guidelines that set a minimum FICO score of 620. FHA does not allow lenders to reject a loan based solely on FICO scores, but if yours is less than 620, there are probably other reasons the underwriter will find in your file to say no.
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