Wednesday, December 24, 2008

Reverse Mortgage

The reverse mortgage turns the equity of the home into tax free cash. Reverse mortgage is more of a loan advance. While the borrower lives in the home, the borrower does not repay the loan.
Any senior who is sixty two years or older is eligible for the reverse mortgage. The home must have some kind of equity. And, the home is the primary residence of the borrower. Depending on the mortgage lenders, the mortgage lenders may require single unit, condo, or townhouse.
Reverse mortgage differs from home equity loan. The mortgage lenders pay the borrower the lump sum, regular periodic payment, line of credit, or combination. The line of credit allows the borrower to choose how and when to get payment. The repayment of loan only happens in reverse mortgage when borrower permanently moves, dies, or sells.
Let us compare with traditional mortgage to better understand reverse mortgage. Any type of mortgage creates debt. A debt is the difference between amount own and amount owe. Traditionally, the home equity increases and debt decreases. In reverse mortgage, the home equity decreases and debt increases.
At the time of repayment, the mortgage lenders use the home to repay the loan. The home pays off the principal, interest, and closing costs of reverse mortgage. Anything extra goes to the remaining relatives. In case of deficit, the mortgage lenders make up for the deficit.
Since the borrower retains the title of home on reverse mortgage, the borrower remains the owner of the home. The borrower is responsible for the maintenance, property tax, insurance, and utilities.
The mortgage interests in reverse mortgage are not mortgage interest tax deduction. However, the borrower can claim the mortgage interest on current first and second mortgage. Even though the borrower is still paying off the first and second mortgages, the mortgage lenders can allow the borrower to go on reverse mortgage.
The borrower can owe only on how much is the home. The mortgage lenders can only go after the house to pay off the mortgage. The assets and estate of the borrower are safe from the mortgage lenders. This is more commonly known as non-recourse loan.

By Dennis Estrada

Check Out the Related Article : Mortgage Insurance Rates

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Sunday, December 21, 2008

Mortgage Refinancing Questions

Mortgage Refinancing is way to replace the existing mortgage with another mortgage. The replacement can happen with the current mortgage lender or a different mortgage lender. Mortgage Lenders created numerous mortgage options which add to the complexities of mortgage. Here are a collection of common questions and answers about mortgage refinancing.
What are the steps to mortgage refinancing?
First, you analyze your current financial situation. This tells how well your financial situation. After, you shop for the best mortgage. Most mortgage lenders have a website. Borrowers can research on the internet. Once the borrower found an advantageous mortgage, the borrower applies for the mortgage refinancing.
How to choose the right mortgage lender, or mortgage broker for mortgage refinancing?
The mortgage lenders differ in mortgage options such as interest rates, mortgage terms, down payment, closing costs, and more. To choose the right mortgage lender requires many mortgage refinance calculations and considerations.

What do I need to complete mortgage refinancing application?
Borrowers need to supply the full names, current addresses, previous addresses, social security numbers, employers information, gross monthly income, property information, asset information, and liabilities information.
When should you do mortgage refinancing?
The life of the mortgage is divided into several mortgage terms. When the mortgage matures at the end mortgage term, the borrower refinances the mortgage. This process is repeated until the mortgage is completely paid out.
The borrower does not necessarily have to wait for the maturity date of the mortgage. Sometimes, the mortgage lender offers a mortgage that is too good to pass. When mortgage lender offers a very good mortgage, the borrower can refinance the mortgage.
If the new mortgage can reduce the life of the mortgage, and reduce the mortgage payment on pay period, it is advantageous for the borrower to refinance the mortgage.

What are the costs involve in mortgage refinancing?

The borrower may have to pay the penalty to refinance a mortgage before the mortgage reaches the end of the mortgage term. Since the mortgage lender loses the interest to be paid to them, the mortgage lender charges penalty. However, a low interest rate on the new mortgage may offset the penalty.
The borrower can pay for the discount points as well. It is the amount to bring down the monthly mortgage payment, or any mortgage payment. Each discount points means one percent.
The borrower also pays the application fee, title search fee, and appraisal fee every mortgage refinancing. Mortgage lender charges a fee to process the mortgage application called application fee. Mortgage lender also needs who the real owner of the property. Hence, the borrower pays the title search fee. Lastly, the appraisal fee tells the fair market value. The mortgage lender needs to find out if the value of the property can pay off the mortgage in case of default on mortgage payment.

By Dennis Estrada

Want to know about The Benefits Of Reverse Mortgage, so click the link below
The Benefits Of Reverse Mortgage

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Wednesday, December 17, 2008

Mortgage Life Insurance Protection

Mortgage life insurance is an insurance policy taken out on the life of the homeowner who has obtained the mortgage. This mortgage life insurance policy is aimed at paying any outstanding mortgage debt upon the death of the insured. To protect their investments, many companies provide mortgage life insurance in association with an insurance company. This mortgage life insurance ensures that the balance mortgage is comes from the insurance company in the event of death of the borrower.

There are two types of mortgage life insurances that borrowers can opt for, namely decreasing term insurance and level term insurance. Borrowers can choose among these on the basis of the kind of mortgage they have obtained that may be a repayment mortgage or an interest only mortgage. Decreasing term insurance is exclusively created for the borrowers who have taken a mortgage. This is preferred by mortgage borrowers because as the balance on the mortgage decreases, the coverage also decreases. This makes sure that at any given time, there are sufficient funds to pay off the balance in case the borrower dies. Level term insurance is for borrowers who have an interest only mortgage. The sum of the coverage remains the same, as the principal never reduces.

Terminal illness benefits are included in both the types of mortgage life insurance to protect the borrowers against having to repay the mortgage in case of any terminal illness. Critical illness coverage is an option that can be added as an additional coverage along with the policy or even as a stand-alone coverage. This allows the borrowers to receive payments in case they are diagnosed with a critical illness. Mortgage life insurance offers protection against the survivors of the borrowers losing their homes, if they are unable to make the monthly payments.

By Peter Emerson

Check Out the Related Article : 10 Tips To Finding The Right Mortgage Loan Broker

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Tuesday, December 16, 2008

Home Mortgage Rates - Get the Best Loan For You at the Best Rate

Finding the best home mortgage terms for you can save you a lot of money, as well as untold headaches. When you look for a home mortgage you'll want to look both online and with a mortgage broker to find the best mortgage terms The most common mortgage terms are how many years the mortgage will be paid off (typically 15 or 30 years) and the interest rate. Home mortgage products are not always straightforward. The basic plan is a 30 year fixed rate, where you pay the same amount of money each month for 30 years. Some mortgage terms offer a lower interest rate for the first few years, converting to a higher rate later on. This adjustable rate mortgage is typically cheaper in the beginning, but can cause a lot of financial problems for the home owner, who might not be able to afford the higher rates down the line.

Mortgage financing is important because of the difficulty in paying for home in cash. The mortgage financing comes from a lender, also known as a creditor. The creditor provides the money for the loan, and you are the debtor. The creditor has legal rights to the keep the home if you default on your mortgage and you have legal rights as well, spelled out in the mortgage agreement.

A mortgage broker can recommend the best mortgage terms for your finances and comfort level. If you don't know a mortgage broker, ask your friends who they used, or ask your real estate agent for a recommendation. While it's great to compare rates online, using a mortgage broker who really knows the loan products can save you a lot of money and get you the mortgage terms you need.

By Bryan Burbank

Check Out the Related Article : 10 Tips To Finding The Right Mortgage Loan Broker

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Monday, December 15, 2008

The Benefits Of Reverse Mortgage

What is a Reverse Mortgage?

A Reverse Mortgage is a very useful home loan option especially for senior homeowners. If you are qualified for a Reverse Mortgage, you need not to pay any monthly payment. Equity of your home repays the reverse mortgage when you sell your home, or die or move out permanently. You, or your children can keep the excess of what you owe the lender.

Tips, which can help you, qualifying for a reverse mortgage:

1) Your age should be at least 62 years.

2) You should have a home on your own name.

3) Older you are, higher the amount of reverse mortgage.

Benefits of reverse mortgage:

Reverse mortgage is beneficial for you if you regularly require money for your living without facing any financial scam. For instance, your age is 65 years, it is obvious that you cannot work on your own in this age; you have no additional source of income but your are a owner of luxurious home, in this critical situation reverse mortgage can help you.

Reverse mortgage is also helpful in situation when you don't want to leave your home for your children.

In this situation, your home will repay reverse mortgage after your death.

Reverse mortgage is available in all the major cities of United States. If you are residing in or around California, then you can take the benefit of California reverse mortgage.

If you are unable to go to a bank or any financial institute for a reverse mortgage loan, you can get information about all type of senior homeowner loans online and can apply online too. Your money will be directly transferred to your account.

Money received as reverse mortgage will be tax-free.

Reverse Mortgage thus permits you to live in your home happily in your golden years. However,we advice you to consult a financial adviser before applying for a reverse mortgage.

By Oliver Turner

Check Out the Related Article : Mortgage Lead Generation

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Sunday, December 14, 2008

Mortgage Interest Rates: Can You Predict Mortgage Interest Rate Trends?

If you are a homeowner, mortgage interest rates are an important aspect of your finances. The interest rate you qualify for is the price you pay to finance your home. Mortgage interest rates change frequently under the influence of many economic factors. If you are in the process of taking out a new mortgage or refinancing your old mortgage can you predict the optimal mortgage interest rate?

Before applying for a mortgage it is important to know what interest rates have been doing. If interest rates are rising you will have to work harder to find a good deal for your mortgage. Can you predict when interest rates will rise and fall? The answer is simply “no” and anyone that tells you that they can is selling something.

Rather than spending your time trying to forecast mortgage interest rates you are much better off doing your homework and researching mortgage offers. This will allow you to choose the best mortgage for your financial situation. Interest rates are important; however, they are only one aspect of the loan that you need to consider.

Many homeowners make the mistake of focusing solely on mortgage interest rates. If you do this you will overlook other expenses such as discount and origination points as well as closing costs. You can learn more about finding the best mortgage while avoiding common mistakes by registering for a free mortgage guidebook: “Five Things You Need to Know About Your Mortgage.”

By Louie Latour

Check Out the Related Article : Mortgage Lead Generation

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Wednesday, December 10, 2008

Mortgage Refinancing: Lock-in Your Interest Rate

If you are in the process of shopping for a new mortgage loan it is important to understand how mortgage lenders guarantee interest rates. When you find the right mortgage loan you will want to have the interest rate and points locked-in and guaranteed by the mortgage lender. Here is what you need to know about mortgage interest rate guarantees.

When you find the perfect mortgage offer having your interest rate and points locked-in is a way to make sure what you pay does not change before you close on the mortgage. This guarantee is your mortgage lender’s commitment to hold your points and interest rate for a specific period of time. You need to make sure the lender grants you enough time to close on the mortgage before the guarantee expires.

Make sure the lender gives you this guarantee in writing. If there is a fee for the guarantee this fee may not be refundable if you decide not to follow through with the loan. Mortgage lock-in guarantees usually last for a period of time from 30 to 120 days; the longer you can get your mortgage lender to guarantee your interest rate the better. If you are unable to close before the guarantee expires your mortgage lender could give you a less favorable interest rate or require you to pay more points upfront. To learn more about refinancing your mortgage and how to avoid common refinancing mistakes, register for a free mortgage guidebook using the links below.

By Louie Latour

Check Out the Related Article : Mortgage Lead Generation

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Wednesday, December 3, 2008

Mortgage Loan Term Length: 15 or 30 Years?

The term length you choose for your mortgage depends on your current financial situation and your long term financial goals. Here is what you need to know when choosing a mortgage term length.

The term length of your mortgage, along with the interest rate, determines how much your monthly payment will be. Term length is the amount of time the mortgage lender gives you to repay the loan. Common choices for mortgage term lengths are 15 and 30 years; however, there are mortgages available with term lengths of 5, 10, and even 40 years.

Which term length is right for you? It depends on your financial objectives. Do you need a mortgage with the lowest possible monthly payment? Do you want to build equity and payoff the mortgage as soon as possible? If you are looking for the smallest monthly mortgage payment possible, choose a mortgage with the longest term length. If you want to build equity and pay off the mortgage as quickly as possible, choose a mortgage with a short term length. Mortgages with a 15 year term are a popular choice with homeowners refinancing their mortgages for this reason.

The interest rate you receive on your mortgage loan is influenced by the term length you choose. Mortgage loans with long term lengths represent more risk to the lender, for this reason your interest rate will be higher with a long term mortgage loan. The opposite is true of mortgages with short term lengths, there is less risk for the mortgage lender and these mortgages come with lower interest rates.

By Louie Latour

Check Out the Related Article : Mortgage Protection

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Monday, December 1, 2008

Mortgage Lead Generator Benefits

As markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. It is highly recommended by all financial experts that buyers seek the assistance of a mortgage broker, sometimes referred to as a Certified Mortgage Planner, before choosing a mortgage. A mortgage broker can guide them through the process of selecting a suitable mortgage and offer mortgage and property related financial advice.

The benefits of a mortgage broker are clear, but increasing a broker's clientele in such a competitive market can be difficult. This is where a mortgage lead generator can play a significant role.

A good mortgage lead generator collects information from those seeking a mortgage from a variety of sources. In this progressive world of instant information and internet access, the world wide web provides a mortgage lead generator with a plethora of lead generation methods. A potential borrower views an internet advertisement, fills out the appropriate information about the loan they are seeking, the lead is verified and made available to brokers.

Many companies offer mortgage lead generator services but not all mortgage lead generator services are created equal. The difference is in how they handle the verification and release of this information. A good mortgage lead generator service will have a stringent verification process, ensuring it's a quality lead with conversion potential. Once a lead is verified, a good mortgage lead generator service will only offer the lead to a very limited number of companies. If there are no strict rules with regards to how many brokers can receive the same lead, it's best to look elsewhere.

It's a very good time for mortgage brokers with 80% of mortgage buyers using one to secure their mortgage. With so many potential clients, a good mortgage lead generator is the ideal weapon.

By Mark Carey

Check Out the Related Article : Mortgage Protection

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