Seniors over 62 can take advantage of the equity they have build in their home by applying for a reverse mortgage. A reverse home loan can help seniors because it works as a loan advance. With this type of loan, the owner doesn't need to make monthly payments back to the bank and doesn't need to pay back any of the money for as long as the owner lives in the property.
The homeowner doesn't need to pay any money back and can not be kicked out of the home for lack of payments because there aren't any payments to make. The homeowner can elect to receive the money from the reverse mortgage in one of three ways: a one time payment, a credit line or as regular monthly payments.
Owners can apply for three different types of reverse home mortgages: single purpose reverse mortgage, federally insured reverse mortgage and private reverse mortgage.
Single Purpose Reverse Mortgage
This type of mortgage is offered by non-for-profit organizations and by state and federal Government agencies. It's the cheapest reverse mortgage to obtain. The biggest problem is that it's harder to qualify for this loan since you must be in the lower income bracket and complete a longer application. In addition, the funds from the loan can only be used for a specific reason( repairs, improvements or property taxes.)
Federally Backed Reverse Mortgage
The U.S. Department of Housing and Urban Development (HUD) backs this reverse mortgage. It is also know as a HECM (Home Equity Conversion Mortgage.) It is a more expensive loan than the previous one.
This type of reverse mortgage is by far the most common of the three. It accounts for over 90% of all reverse mortgages. It's very popular because it's very easy to apply to and qualify for. In addition, you can use the money from the loan far whatever reason you want.
Proprietary Reverse Home Mortgage
This kind of reverse home loan is available through private companies that haven't been HUD certified. They usually have the same requirements than a federally insured one.
The biggest problem with this type of loan is that it can be very expensive. Since private companies offering this type of loan do not need to comply with federal regulations, some companies take advantage of it by charging excessive fees to unsuspected seniors.
Article Source: the-Articles.com
About the Author
Author: IgorBuces
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Showing posts with label home loan. Show all posts
Showing posts with label home loan. Show all posts
Monday, June 29, 2009
Wednesday, June 10, 2009
UT Mortgage Glossary - Are You Familiar with the Terms?
Do you wish to apply for a UT mortgage? Are you familiar with the mortgage glossary? Do you know what you will be dealing with? Even if you hire a professional to do the job for you, you need to be able to evaluate and assess a potential danger or prospective benefits. Unless you are familiar with the basic terminology, you will have a hard time to figuring out if a UT mortgage is beneficial or not.
: when referring to mortgages we refer to loans you can obtain so as to pay for your future house. Both the building and the land are used as collaterals, since the mortgage is a secure loan. This means that if you fail to make the payments on time, the lending institution can apply for foreclosure, taking the house away from you.
Collateral: the items or assets that you place as a security for the repayment of the original mortgage. In the case of a UT mortgage, the house or property are placed as collaterals.
Interest: Interest is the additional amount of money that lenders charge as a fee for using their money to buy or refinance a house. Interest rates can be different among lenders. Interest is generally stated in percentages and added to monthly installments.
Loan term: the amount of time you will need to pay off the debt; it is agreed between you and the lender when obtaining the UT mortgage.
Debt amortization: amortization is a process based on which lenders calculate mortgage payments. The amount applied to principal is usually lower early in the loan and higher towards the end.
Fixed rate: an interest rate that doesn't change throughout the loan's term.
Adjustable rate: a rate that adjusts to the changes of indicators or terms applied by the bank.
Equity: the difference between the value of a property and the unpaid amount of the mortgage. The amount of equity is usually important when the borrower wants to negotiate a refinancing or a loan modification.
Foreclosure: the legal process during which the lender can take the house or property away from the borrower; this happens as a result of failed payments after some time, or as a punishment for not abiding by the agreed terms between the lender and borrower.
Article Source: the-Articles.com
About the Author
Author: DirectMortgage
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
: when referring to mortgages we refer to loans you can obtain so as to pay for your future house. Both the building and the land are used as collaterals, since the mortgage is a secure loan. This means that if you fail to make the payments on time, the lending institution can apply for foreclosure, taking the house away from you.
Collateral: the items or assets that you place as a security for the repayment of the original mortgage. In the case of a UT mortgage, the house or property are placed as collaterals.
Interest: Interest is the additional amount of money that lenders charge as a fee for using their money to buy or refinance a house. Interest rates can be different among lenders. Interest is generally stated in percentages and added to monthly installments.
Loan term: the amount of time you will need to pay off the debt; it is agreed between you and the lender when obtaining the UT mortgage.
Debt amortization: amortization is a process based on which lenders calculate mortgage payments. The amount applied to principal is usually lower early in the loan and higher towards the end.
Fixed rate: an interest rate that doesn't change throughout the loan's term.
Adjustable rate: a rate that adjusts to the changes of indicators or terms applied by the bank.
Equity: the difference between the value of a property and the unpaid amount of the mortgage. The amount of equity is usually important when the borrower wants to negotiate a refinancing or a loan modification.
Foreclosure: the legal process during which the lender can take the house or property away from the borrower; this happens as a result of failed payments after some time, or as a punishment for not abiding by the agreed terms between the lender and borrower.
Article Source: the-Articles.com
About the Author
Author: DirectMortgage
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Convenient Advice For Big Savings On Your Mortgage Loan
These days, foreclosure is rife in the US. Last year over 2 million of these took place and this is why it is wise to save as much as possible on a mortgage loan. There is nothing wrong with owning a home and no one should be afraid to take this step, but getting a mortgage is probably the single biggest investment you will ever make. In this article, we'll look at ways to protect that investment..
It is very rare that anyone buying property is able to purchase it outright. Virtually every home owner has to make use of a mortgage loan to facilitate this purchase. Owning a mortgage it a long term commitment as they usually run from between fifteen to thirty years. It is for this reason that it is important to realize any savings you can.
Saving money on your mortgage is important to successful home ownership. Never buy a property if you don't intend to live in it for at least 3 years or longer. Because the costs associated with buying property and moving are very expensive. A piece of property needs to have appreciated at least 15% before any thought should be given to moving and this does not happen in a period as short as three years.
Before you start looking for a mortgage product, work on your finances. Make sure that your finances are in good shape and get a credit report to check and dispute anything you believe should not be appearing on it. Pay as much of your credit card debt as you can, this costs you an arm and a leg in interest. Ensure that all bills are paid on or before time as this influences your credit record. The better your credit rating, the lower the interest on your mortgage will be.
Never take a loan which covers interest payments only, this is a bad decision. Take the loan over the longest possible period. This will mean that the interest rates are lower and so too will be the monthly capital repayments. In this instance shorter is not better! The easier your mortgage is to afford, the less chance you will have of losing your home to foreclosure if you encounter a crisis.
Article Source: the-Articles.com
About the Author
Author: MattGolski
Matt writes about financial matters and loan
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
It is very rare that anyone buying property is able to purchase it outright. Virtually every home owner has to make use of a mortgage loan to facilitate this purchase. Owning a mortgage it a long term commitment as they usually run from between fifteen to thirty years. It is for this reason that it is important to realize any savings you can.
Saving money on your mortgage is important to successful home ownership. Never buy a property if you don't intend to live in it for at least 3 years or longer. Because the costs associated with buying property and moving are very expensive. A piece of property needs to have appreciated at least 15% before any thought should be given to moving and this does not happen in a period as short as three years.
Before you start looking for a mortgage product, work on your finances. Make sure that your finances are in good shape and get a credit report to check and dispute anything you believe should not be appearing on it. Pay as much of your credit card debt as you can, this costs you an arm and a leg in interest. Ensure that all bills are paid on or before time as this influences your credit record. The better your credit rating, the lower the interest on your mortgage will be.
Never take a loan which covers interest payments only, this is a bad decision. Take the loan over the longest possible period. This will mean that the interest rates are lower and so too will be the monthly capital repayments. In this instance shorter is not better! The easier your mortgage is to afford, the less chance you will have of losing your home to foreclosure if you encounter a crisis.
Article Source: the-Articles.com
About the Author
Author: MattGolski
Matt writes about financial matters and loan
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Subscribe to:
Posts (Atom)
