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Monday, 3 November 2008

Disadvantages Of Reverse Mortgages-Some Drawbacks To Getting A Reverse Mortgage

   by William Perry

While reverse mortgages have its advantages to senior citizens, it is essential to know the disadvantages of reverse mortgages so you'd know whether it would be best for your particular needs.

Knowing both the advantages and disadvantages of reverse mortgages would make you more comfortable when taking a step towards getting this type of mortgage.

Reverse mortgages have been designed to help "property-rich-cash-poor" senior citizens to release the equity of their homes and turn it into a source of income to meet their financial needs. Reverse mortgages are tax-free and requires no minimum income or credit history.

The homeowner can stay in their home as long as they want or until they die, and they can use the proceeds of the loan for any purposes. They also have the choice of receiving the loaned amount as a lump sum or in installments.

However, because you are not required to make monthly repayments, the interest adds up and grows significantly over time. Reverse mortgages are rising-debt loans, which means they are costlier than traditional forward mortgages.

One of the conditions of reverse mortgages is that you must payoff any outstanding balance on your home with the proceeds of the reverse mortgage. This is would be a disadvantage on your part especially if you still owe your past mortgage company a substantial lot.

One of the bigger disadvantages of reverse mortgages is that you can use up all or most of the equity of your home. If you plan to bequeath your home to your descendants, they have to take the responsibility of repaying your loan.

Though reverse mortgaged homes are often sold to repay the loan, this is a major aspect you have to consider especially if you are looking towards leaving some assets to your heirs. So while this type of loan can help you meet your financial obligations, understanding also the disadvantages of reverse mortgages is vital so you decide what is best for you.

 

 

About the Author

Want to learn more on the disadvantages of reverse mortgages? Check out internetmortgagetips.com. Also, if you are asking yourself about a mortgage and how much can I borrow, you can learn the answer to this out as well.


Posted by refinance-tips at 10:42 PM EST
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How to select mortgage loan options?

   by John Elton

How to select mortgage loan options?

It is a dream comes to for anyone who purchases a loan. They expect a hassle free life in the own dream home. Own home is really a motivating factor in life. You can make your home as you want, in accordance with the desire, taste and creativity, but…

All of us know it is not a fun to own a nice property. It involves lot of hard work, preparations and huge amount of investment. Most of us will not able to make the amount required to purchase the home may within next decade. What is the option in front of us? There is only one option for a home buyer to gather the sufficient amount. It is nothing but Mortgage loans. Then the question comes what are the mortgage loan options and how to select them? There are many factors which can drive for a proper selection of mortgage loan.

• First factor is the amount of loan you require. If you require more amounts as usual it will take little more time for evaluation etc. Typically lender will do an evaluation and based on that he will offer you the mortgage loan amount. The factors that can affect the evaluation include the worth of the property in terms of bricks and mortar, the location of the property, the completeness of the house etc. • The down payment you are ready to invest can affect the mortgage loan amount. Make sure that you can make a down payment from your wallet to have a great deal. It will beneficial to you in long run. • The term of repayment. It is very important. You have to necessarily make a compromise between the term of repayment and mortgage loan amount. Typically repayment period ranges between 5 years to 25 years. If you plan to take less repayment period to avoid more interest payment, you can get only less mortgage loan amount. As the period is less the monthly repayment amount will be high and hence with your repayment capacity you can get only less mortgage amount. So if you are looking for more mortgage amount, you have to necessarily go for long repayment periods. One disadvantage with the long repayment period is that you will be paying more as interest. • An important factor deciding the deal is the interest rate. Mostly the interest rates will be same all across the lenders. But the deciding factor will be the type of interest rate you select. There are two types of interest rates offered by the lender. These options are varying interest rate and the fixed interest rate. Both will have advantages and disadvantages. You have to see which is beneficial for you among these two interest rates. • A factor that can affect your decision is the other charges the lenders put on the deals. Some of them ask for some processing charges, evaluation charges and some such charges. You should get all the details of such expenses before deciding the deal.

Presently getting a home loan is not at all a difficult task. Many mortgage lenders are out there to help you in achieving the life ambition of an own property.

 

 

About the Author

Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance site to help taking decision about auto Insurance.


Posted by refinance-tips at 10:31 PM EST
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How to decide mortgage loan amount?

   by John Elton

As all of us know the great ambition of anyone in the world is to own a home. Most of the people are fed with the insufficient facilities of rented homes and also unable to bear the increased rental rates. Why to pay some amount every month as rental? You can very well own a home and save your hard earned money. But the problem associated with this ambition is the huge amount involved to purchase the dream home. Most of the people will not be having the large sum in their wallet to spare for the property purchase. The best opportunity comes to them as the mortgage loans. Many mortgage financing companies are out there ready to disburse loans amounts to the potential home buyers.

Many people wonder how to get best deals in mortgage loans and also how much amount of loan they can avail as mortgage loan. Also they wonder whether any amount needs to be out from the personal savings as down payment. To find out the answers for these doubts one has to do a thorough search in the online lender's website. This information is highly important to plan well before venturing out to purchase a dream property. There are many factors which decide on the mortgage loan amount. In this article we plan to discuss about these factors.

You should able to calculate, at least approximately, the amount you require as mortgage loan. This is the first step you should attend. If you have already located a property, you can check up with the agent or home owner, the amount you require to pay over it. Please remember you should add about 20 % more over the cost as the total expense in materialising the dream property. This extra is for all the expenses which will be coming in the way of searching the property to approval of registration. This include, commission fro the agent, registration charges, evaluator charges, taxes and so many such expenses.

You do not expect that you can get full expenses as the mortgage loan. You should able to make some down payment from your personal saving. You will be benefited if you can pay more from your own wallet. It is always advisable to pay maximum possible as your own down payment, as you will save much amount as interest. The amount of the mortgage loan depends purely on the worth of the home property. This includes bricks and mortar charges, construction costs, labour charges and many such items.

The amount of mortgage loan for the property also depends on the location of the property. If the home is placed at a prime location, the value of the home will be high and if the property is highly interior, the appreciation will be very low. The lenders will have their own evaluators. They will make a site visit and then decide on the appreciation of the property.

When you estimate the amount of mortgage loan you require, make sure that you have considered all the above factors.

 

 

About the Author

Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance site to help taking decision about auto Insurance.


Posted by refinance-tips at 10:23 PM EST
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How to Use the Law to Help You Stop Mortgage Foreclosure

   by Jill Borash

You can use the law to help you stop mortgage foreclosure on your home but you need to know what your options are and what you are looking for. Your best bet is to hire a real estate attorney to look at the foreclosure documents you received as well as your loan origination documents for any mistakes.

The Truth in Lending Act may be the perfect ally for you to stop mortgage foreclosure if you want to call into question the validity of your mortgage loan. If you want to go this route, you will need to prove that your originating loan documents were wrong. The area where this really comes into play is if your mortgage company made any mistakes in disclosing vital financial pieces of information. If this is the case, it is possible that your loan itself could be canceled. Here is where it is very important to have an attorney who is familiar with Regulation Z (has many of the detailed requirements of the Truth in Lending Act).

Some truth in lending areas that could help you stop mortgage foreclosure that you might want to have your attorney verify on your loan:
- Your mortgage company having more money in your escrow account than they are allowed.
- Not putting information in the documents that describes how you can get rid of your private mortgage insurance.
- Not adjusting your ARM (adjustable rate mortgage) correctly.
- Not including referral fees to the originator of the mortgage.

If you are going to try to use the Truth in Lending Act to stop mortgage foreclosure, you are going to need to make sure that your attorney goes through all of your loan origination documents with a fine-tooth comb. Any errors, mistakes or discrepancies could mean the difference between being able to stop mortgage foreclosure and losing your home.

Some other legal avenues that you may have available to you to stop mortgage foreclosure are:
- If you can prove that your mortgage company lost any of your payments. Having clear and detailed records on this will be your best defense.
- If you have an FHA-insured loan, you should have received information about preforeclosure counseling. This is required by law for FHA-insured loans.
- If your mortgage company accepted payment from you after foreclosure was filed on the home.

 

 

About the Author

If you are going to try to use the law to help you stop mortgage foreclosure, you will need a real estate attorney who is well versed in the Truth in Lending Act and foreclosure documentation. This is definitely a battle that you do not want to fight on your own. Get more free information about ways to stop mortgage foreclosure at http://www.Stopping-Home-Foreclosure.com


Posted by refinance-tips at 10:16 PM EST
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Best Mortgage Deal In Uk-How To Find The Best Deal Around

   by William Perry

Your choices of mortgages are wide and varied, and shopping for the best mortgage deal in UK can be mind-boggling. But when talking about the best mortgage deal in UK, all your personal circumstances are considered.

Mortgages are very intricate, and how cheaply you can get a mortgage loan is determined by a number of factors including the borrower's credit history, assets, income, and how much down payment you can raise. Your loan deal would also depend on whether you are mortgaging for the first time, re-mortgaging, or finding a let-to-buy mortgaging.

There's a long list of mortgage deals in the UK including flexible rate mortgages, fixed rate mortgages, discount mortgages, tracker mortgages, low set-up mortgages, and capped rate mortgages.

One of the most confusing questions facing borrowers is whether to get a flexible rate mortgage or fixed rate mortgage. Currently, mortgage interest rates in the UK are very low and competition in the real estate industry is very strong.

However, a small rise in the interest rate can greatly increase your monthly amortization. Fluctuating interest rates can increase or decrease your monthly payments, and a drop in interest rates can also significantly lower your monthly repayments.

However, if you do not want the instability and unpredictability of fluctuating interest rates, you can settle for a fixed rate mortgage, a discounted rate mortgage, or a capped rate mortgage.

When shopping for the best mortgage deal in UK, you should first understand how mortgages in general work, and how each type of home loan works. You can also talk to a mortgage broker who can help you in nail down the best mortgage deal since they know best the ins and outs of the real estate industry.

The bottom line, though, is that the best mortgage deal in UK is one that suits your personal needs and requirements, and your broker would put this into primary consideration when searching the mortgage market for you.

 

 

About the Author

For more info on finding the best mortgage deal in the UK, check out internetmortgagetips.com. This is a popular site that shows you how to calculate a mortgage, and ultimately find the best one on the market.


Posted by refinance-tips at 10:09 PM EST
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