Showing posts with label Reverse Mortgage. Show all posts
Showing posts with label Reverse Mortgage. Show all posts

April 05, 2013

How Beneficial it is to Depend on Home Equity for Retirement

It is known to all that your home is the most vital asset, which you will never wish to lose at any cost. Based on this belief, a doubt surely arises in your mind while planning for retirement – “Is it beneficial to use home equity for meeting your financial needs during the days of retirement?” The answer to this question becomes even more essential when you can arrange for other sources of funds from online giants. According to a few financial advisors, reverse mortgages, home equity loans, and home equity lines of credit are ideal for unlocking the funds locked in your home, thus, enabling you to breathe contentedly during the retired life.

February 04, 2013

4 Ways to Prepare Your Loved Ones for a Financially Stable Retirement

Planning for the future is important, especially because today's senior citizens are living longer, healthier, and more active lives than ever before. Americans are enjoying longer retirements, which often present many with a choice between pushing back the retirement age and living out the golden years in a far more frugal fashion. If you have parents or loved ones who are planning for retirement or have already reached retirement age, there are a few things you can do to help make the transition more pleasant and more financially wise.

June 24, 2010

Mortgage rates and its effects on refinancing

For many mortgage payers, refinancing is not only a big option but the one & only solution. The main advantage of refinancing your property is that it effectively reduces the interest rates as well as monthly payments on mortgage. Even it is same if you have a balloon mortgage to pay off. In case of this short-term loan, your monthly payments on mortgage are figured out on the basis of 30-year loan amortization schedules. But as the name suggests, after a short span like 5-7 years the rest of the loan should be paid as the balloon payment.

Mortgage finance faced a turn down during the recession period. But as the period is going to over gradually, lenders have started offering comparably cheaper home loans.

Mortgage rate variations :
  • It is evident from the latest figures that, mortgage rates have dropped to seven year low !
  • According to the researchers, before 2 years at the time of financial turnroll, the average rate on a 2-year fixed rate mortgage exceeded 7%.
  • At the starting of 2010, it dropped down to 4.93%.
  • But as per the latest news, it has lowered down to 4.52%, which is the lowest rate in the mortgage industry since 2003.
So, refinancing your home now will be a matter of thinking.

Should one refinance?
Homeowners should think many times before refinancing their mortgages. Mortgage rates are at their lowest edges does not mean refinancing will come out to be the best option for all of them. It is said conventionally that a homeowner should refinance their mortgage as per the 2-2-2 rule.
It says people can opt for refinance :
  • If the market interest rate has reduced at least 2% than the existing one,
  • Payments for 2 years is already cleared 
  • The property should be kept for 2 more years.
Sometimes it may be more advantageous to continue the existing mortgage payments than incurring the cost of a new one. It can be figured out by a home refinance calculator if refinancing is worthwhile for the homeowner. Once confident enough he or she can go for refinancing his or her property easily.

May 28, 2010

Facts about mortgage loan calculators

Mortgage loan calculators are the most important tools to determine how much house one can afford. When somebody wants to buy a house, the first and foremost fact which he or she needs to know is the loan amount which he or she have to pay the mortgage lender. To get an idea about the monthly payment, mortgage loan calculators are used. Different mortgage lenders have different schemes though in all the cases, mortgage loan calculators calculate the loan amount upon the basis of some information, provided by the borrower.

To calculate loan amount :
Mortgage loan calculators need some basic information in order to give us the proper idea about how much we will have to pay after applying for a loan. These basic requirements are :
1. The income of the applicant
2. The credit score of the applicant
3. The current price of the real estate
By providing these info, you will get an exact idea about your payment, with respect to a particular mortgage lender.

Types of mortgage loan calculators :
Mortgage loan calculators may be of various types upon the basis of need. You can choose depending upon what kind of mortgage calculation you want to execute -
1. Mortgage Refinance Calculator
2. Mortgage Rates Calculator
3. Mortgage Interest Rate Calculator
4. Mortgage Closing Cost Calculator
5. Mortgage Amortization Schedule Calculator
6. Loan Amortization Calculator
7. Amortization Schedule Calculator
8. Home Loan Refinance Calculator
There may be of other types though these are the mostly used.

In US, the worth of the housing finance industry has been determined as $18 billion. A house is the largest purchase so it must be known what will be your monthly mortgage payment. Mortgage loan calculators will show it you and make your home buying smooth and easy.

June 06, 2009

Fighting against foreclosure

Fighting against foreclosure for our home is a very tough job, it seems like a battle. Because most of the affected home owners do not pay for the legal proceedings for their mortgage. Actually the shortage of fund leads them to face foreclosure. There are some valuable approaches that you can try before the actual foreclosure. Let’s watch this video and get some ideas for fighting against foreclosure.

January 09, 2009

The Reverse Mortgage Advantage

Reverse Mortgage is a type of loan which is available for senior citizens. These are very good types of loan that help for eligible home owners can get Tax free cash flow. After the retirement most of the people already used reverse mortgage. This mortgage is a Govt. sponsored & insured loan. Its main advantage is that the eligible person no needs to pay any thing for the period of time till he lives in his home.

There are three types of reverse mortgage is available, these are:
1. Federally insured
2. Lender insured
3. Uninsured

These three reverse mortgage products are:
1. Home Equity Conversion Mortgage
2. Fannie Mae Home Keeper reverse mortgage
3. Cash Account

The mortgage products defer upon
1. Residential property
2. Payment types
3. Loan amount
4. Processing fees
5. Interest on the loan balance

Cost and interest rates of Reverse Mortgage:

Getting a reverse mortgage loan through a private organization’s lender is a high cost factor. For this type of mortgage’s exact cost depends on the particular the borrower acquires. In United States the most popular reverse mortgage is the FHA-insured Home ‘Equity Conversion Mortgage’. In every case the cost of reverse mortgage is being financed of the loan amount itself.

The overall demand of Reverse mortgage:

In December 2007 the Senate Committee is discussing that the mortgage institutions are applying aggressive marketing and sales techniques to attract senior homeowners to take reverse mortgages. As a result of this a huge populations of seniors are turning 63 every year in US and then they are demanding for reverse mortgage loans, and its rises every year. There was a growth of almost 56% in these types of loan in 2006 from 2005. The Federal Government in December 2007 removed the restrictions on the number of outstanding reverse mortgage loans. They would underwrite at any given time, prior to the new legislation. The reverse mortgage loans original limit was 275,000.