Jan
31
Filed Under Finance | Leave a Comment
Angela J. Brinker asked:
In an ideal world, children are raised by their parents and are provided with everything that they would need in order to provide them a stable and promising future. When that time comes, and the parents are now old and have retired, it is now the children who take care of their parents and providing them the comfort and support as they live out their remaining days. However, in the real world, this is not often the case. Oftentimes, senior citizens are left on their own after their children have moved out from the house. While there are some lucky ones whose children would, once in a while, drop by and care for them, a vast majority of the senior citizens would have to rely on themselves and their savings in order to live as comfortably as they can.
To provide some form of support for the senior citizens living on their own in the United States, the US Government had passed the American Homeownership and Economic Opportunity Act of 2000. In it, the government lists the different financial benefits senior citizens may attain resulting to taking out a reverse mortgage plan to live out their remaining years healthy and in comfort. Here are just some of the benefits.
Reduction of Economic Hardship
As an individual gets older, he or she is more in need of certain needs such as medical care and adequate housing. Because majority of the senior citizens living in the United States have already retired, they are only able to rely on their pension and savings that they have kept aside to sustain them after retirement. By getting a reverse mortgage, a senior citizen would be able to liquidate his or her home equity to fund for all the basic necessities he or she would need in order live comfortably and at ease throughout his or there remaining days without having to lose his or her home or having to provide some proof of income.
Assurance from the Government
Unlike other types of mortgages and loan programs available in the market, reverse mortgages are insured and sponsored by the US government. As such, any amount that a senior citizen would be able to take out through a reverse mortgage would be exempted from tax conditions and other fees most mortgages and loan programs are subjected to.
No Repayment Schedules
Perhaps the best benefit and advantage of getting a reverse is the fact that for as long as the senior citizen who had taken out the reverse mortgage or his or her spouse resides in the home that has been placed in the reverse mortgage contract, he or she would not have to worry about making any form of repayments. When one takes out a mortgage or a loan from a creditor or financial institution, it is the responsibility of the borrower to repay the amount that was loaned or mortgaged through a schedule of repayments. In the event that this is not met, then the financial institution or creditor has the authority of seizing the property placed as a form of collateral. In the case of the reverse mortgage program, the senior citizen would have the benefit of being provided the financial aid he or she may need for medical checkups, healthcare, home improvements and other basic necessities.
Maintain Ownership of the Home
Although the amount of funds that is received from the reverse mortgage plan is taken from the equity of the home of the senior citizen, the ownership of the home is not transferred to the creditor or financial institution. As a result, they do not have to worry about foreclosures and other legal action commonly faced by borrowers that have taken out other types of mortgages or loans.
HERIBERTO
In an ideal world, children are raised by their parents and are provided with everything that they would need in order to provide them a stable and promising future. When that time comes, and the parents are now old and have retired, it is now the children who take care of their parents and providing them the comfort and support as they live out their remaining days. However, in the real world, this is not often the case. Oftentimes, senior citizens are left on their own after their children have moved out from the house. While there are some lucky ones whose children would, once in a while, drop by and care for them, a vast majority of the senior citizens would have to rely on themselves and their savings in order to live as comfortably as they can.
To provide some form of support for the senior citizens living on their own in the United States, the US Government had passed the American Homeownership and Economic Opportunity Act of 2000. In it, the government lists the different financial benefits senior citizens may attain resulting to taking out a reverse mortgage plan to live out their remaining years healthy and in comfort. Here are just some of the benefits.
Reduction of Economic Hardship
As an individual gets older, he or she is more in need of certain needs such as medical care and adequate housing. Because majority of the senior citizens living in the United States have already retired, they are only able to rely on their pension and savings that they have kept aside to sustain them after retirement. By getting a reverse mortgage, a senior citizen would be able to liquidate his or her home equity to fund for all the basic necessities he or she would need in order live comfortably and at ease throughout his or there remaining days without having to lose his or her home or having to provide some proof of income.
Assurance from the Government
Unlike other types of mortgages and loan programs available in the market, reverse mortgages are insured and sponsored by the US government. As such, any amount that a senior citizen would be able to take out through a reverse mortgage would be exempted from tax conditions and other fees most mortgages and loan programs are subjected to.
No Repayment Schedules
Perhaps the best benefit and advantage of getting a reverse is the fact that for as long as the senior citizen who had taken out the reverse mortgage or his or her spouse resides in the home that has been placed in the reverse mortgage contract, he or she would not have to worry about making any form of repayments. When one takes out a mortgage or a loan from a creditor or financial institution, it is the responsibility of the borrower to repay the amount that was loaned or mortgaged through a schedule of repayments. In the event that this is not met, then the financial institution or creditor has the authority of seizing the property placed as a form of collateral. In the case of the reverse mortgage program, the senior citizen would have the benefit of being provided the financial aid he or she may need for medical checkups, healthcare, home improvements and other basic necessities.
Maintain Ownership of the Home
Although the amount of funds that is received from the reverse mortgage plan is taken from the equity of the home of the senior citizen, the ownership of the home is not transferred to the creditor or financial institution. As a result, they do not have to worry about foreclosures and other legal action commonly faced by borrowers that have taken out other types of mortgages or loans.
HERIBERTO
Jan
28
Filed Under Mortgage | Leave a Comment
vinny asked:
short version:
pending forclosure by the second mortage while I am looking into a loan modification by the first mrotgage. What is the best option since I don’t even want the house anymore as it is a money pit.
So after 7 years of never missing a mortgage payment I had some hardships of seperation and the lose of a second job. Although the wife and I are pack after a 6 month split, I am in jeopardy of losing the house and need advice. I have a second and first mortgage and owe 145% on my home. Or owe $72,000.00 more then the house is worth. I am behind on both first and second. The first is trying to help with a loan mod but the second says they are going to pursue forclosure. What is my best option.?Short sale? died in lieu? let them forclose? will I have to pay the difference to both morgages? Please help!!! Frankly the house is a money pit and regreat ever believing i the second mortgage lender in them telling me the house was worth more then it really was. I ended up checking after the fact and the day we took the second the comps in the area were $35,000 less and my home was worth $31,000 less then what they wrote on paper just to ok the loan.
Can they garnish my wages?
I dont want the house so what is my best option?
Will I have to pay second mortgage back if there isn’t enough money?
BENNETT
short version:
pending forclosure by the second mortage while I am looking into a loan modification by the first mrotgage. What is the best option since I don’t even want the house anymore as it is a money pit.
So after 7 years of never missing a mortgage payment I had some hardships of seperation and the lose of a second job. Although the wife and I are pack after a 6 month split, I am in jeopardy of losing the house and need advice. I have a second and first mortgage and owe 145% on my home. Or owe $72,000.00 more then the house is worth. I am behind on both first and second. The first is trying to help with a loan mod but the second says they are going to pursue forclosure. What is my best option.?Short sale? died in lieu? let them forclose? will I have to pay the difference to both morgages? Please help!!! Frankly the house is a money pit and regreat ever believing i the second mortgage lender in them telling me the house was worth more then it really was. I ended up checking after the fact and the day we took the second the comps in the area were $35,000 less and my home was worth $31,000 less then what they wrote on paper just to ok the loan.
Can they garnish my wages?
I dont want the house so what is my best option?
Will I have to pay second mortgage back if there isn’t enough money?
BENNETT
Jan
23
Does shopping for morgage companys hurt your credit rating?
Filed Under Renting & Real Estate | 2 Comments
Janine P asked:
Does asking morgage companies to reasearch quotes on rates cause any unkown stress to your credit rating. For example would asking for a rate and morgage put “dings” on your rating.
MARION
Does asking morgage companies to reasearch quotes on rates cause any unkown stress to your credit rating. For example would asking for a rate and morgage put “dings” on your rating.
MARION
Jan
19
Can you obtain a morgage for a home and use it to pay off bills at the same time?
Filed Under Renting & Real Estate | 7 Comments
dragonkeeperchick asked:
My husband and I are trying to purchase our first home. We have approx. 5 credit cards. We have been pre-qualified for a morgage but, we are wondering if our credit card bills can be paid off with the morgage
HANS
My husband and I are trying to purchase our first home. We have approx. 5 credit cards. We have been pre-qualified for a morgage but, we are wondering if our credit card bills can be paid off with the morgage
HANS
Jan
15
what can i do not enough income to pay all our bills and morgage loans?
Filed Under Financial Aid | 2 Comments
dab asked:
we are behind 1 month on our 1st morgage payment. we don’t make enough money due to less income what can we do, our loan is more then our home is worth.
EMMANUEL
we are behind 1 month on our 1st morgage payment. we don’t make enough money due to less income what can we do, our loan is more then our home is worth.
EMMANUEL
Jan
9
Filed Under Internet Marketing | Leave a Comment
Matthew Haskins asked:
I was shown this same oppourtunity and I took it, now I’m earning really good money online, i intend to leave my full time job, i’m that confident in this, hopefully you will be 2. I can’t beleive I didn’t find this sooner. Watch the video and if you like what you see leave your name and e-mail to receive further information.
This company has been around for quite some time, there goal is to make 100 internet millionaires this year, think how much your life could change, you have the oppourtinity to earn $300-2000 per sale, thats would make a huge difference to your bank balance wouldn’t it, imagine how satisfied you would be when you check your account and see your balance going up and up, you could pay off debts, clear your morgage, go on holiday as often as u like, you would be your own boss, so you only have to answer to yourself. Sounds good doesn’t it, sounds too good to be true you might say, sound like a dream, well if you are little skeptical thats fine, I was too, I didn’t beleive it at first, however I thought about it alot, I reviewed my current financial situation, and reconsidered, I haven’t been doing this long but I can already see i’m going 2 make a huge income from this, it’s given me alot more potential to do the things I want because I’ll have the money to do it, and you can too, anyone can, So what are you waiting for check out this fantastic oppourtunity.
Look in my author bio for the website links to this great oppurtunity.
ROSCOE
I was shown this same oppourtunity and I took it, now I’m earning really good money online, i intend to leave my full time job, i’m that confident in this, hopefully you will be 2. I can’t beleive I didn’t find this sooner. Watch the video and if you like what you see leave your name and e-mail to receive further information.
This company has been around for quite some time, there goal is to make 100 internet millionaires this year, think how much your life could change, you have the oppourtinity to earn $300-2000 per sale, thats would make a huge difference to your bank balance wouldn’t it, imagine how satisfied you would be when you check your account and see your balance going up and up, you could pay off debts, clear your morgage, go on holiday as often as u like, you would be your own boss, so you only have to answer to yourself. Sounds good doesn’t it, sounds too good to be true you might say, sound like a dream, well if you are little skeptical thats fine, I was too, I didn’t beleive it at first, however I thought about it alot, I reviewed my current financial situation, and reconsidered, I haven’t been doing this long but I can already see i’m going 2 make a huge income from this, it’s given me alot more potential to do the things I want because I’ll have the money to do it, and you can too, anyone can, So what are you waiting for check out this fantastic oppourtunity.
Look in my author bio for the website links to this great oppurtunity.
ROSCOE
Jan
9
Sky asked:
I check town hall and nooks but i can figure out where to pay my morgage!!
TERENCE
I check town hall and nooks but i can figure out where to pay my morgage!!
TERENCE
Jan
7
Filed Under Mortgage | Leave a Comment
Nick Riviera asked:
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank. It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand. Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
CARL
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank. It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand. Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
CARL
Jan
4
Filed Under Finance | Leave a Comment
Richard Weber asked:
In order to talk about and understand what you should NOT do when refinancing your home mortgage, we should begin by covering some basics about mortgages, refinancing, and a few of the reasons why anybody would want to refinance in the first place.
In terms of the actual nature of a mortgage, there is very little difference between a mortgage and a loan except that a mortgage is always for a home, it is generally paid back over a longer period (5-40 years), and the home itself is used as collateral. Because the real estate that you are buying is used as collateral, this is what is referred to as a ’secure loan.’
When a borrower (you) and a lender (usually the bank) agree upon the terms and time frame of the mortgage, one of the most important things that is in question is the Interest Rate (usually cited as an APR percentage, meaning annual percentage rate). This determines how much the borrower will eventually pay back to the lender.
There is a very simple concept that has been practiced for centuries that is at the heart of an interest rate. If Party A lends money to Party B, and Party B agrees to pay back that money at a later date, Party B will always pay back MORE than the total amount borrowed simply because they had the use of that money over the specific arranged timeframe.
When it comes to refinancing a home loan or mortgage, many people have heard of it and know they can save money this way, but might not know exactly how to do it. When you decide to refinance your home loan, you will work with a different bank or lender that will purchasing the remaining amount of your existing mortgage and provide you with a new one, and you will instead make monthly payments to this new bank.
Although the majority of families looking to refinance their mortgage wish to do so to take advantage of lower interest rates, a few other reasons would be to raise a lump-sum of cash, or to secure against possible volatility in their interest rate values. This last reason, preventing the possible raising of interest rates, usually amounts to switching from an adjustable rate mortgage (ARM) to one with a fixed interest rate.
When a borrower wishes to refinance their mortgage to obtain immediate cash, this is called ‘Cash-Out Refinancing,’ and many people make costly mistakes in this process which you will learn to prevent below.
—–Mistakes To Avoid With Cash-Out Refinancing—-
Cash-out refinancing is borrowing more than the total cost of your home in order to have a chunk of cash left over after you have repaid your existing mortgage.
If you are looking to get some cash to work with using a mortgage, this simply means that you are getting a loan based on the value of your home, with the home itself as collateral. You have to options when it comes to getting cash this way, and the one that you should use depends on what interest rates you are able to secure with each. You can either obtain a second mortgage for the value of the amount of cash that you need, or you can let your new bank know that you need the value of your new mortgage to be HIGHER than the value of your existing one.
Now when most people hear about taking a second mortgage out, their brain tells them that they must avoid this at all costs as it may put them further in debt. But this is not always right, because usually with cash-out refinancing the bank or lender will charge you a higher interest rate than if the value of your new mortgage was THE SAME as your old one.
For the sake of ease and simplicity, let’s just use some basic round numbers in this example: The existing value to be repaid on your mortgage is $200K, and you need $20K cash for something like a hospital bill (or maybe a generous donation to your Tropical Vacation trust fund). You can either obtain a $20K second mortgage at 12% interest, or you can refinance your existing mortgage to $220K at 7%.
Which one is better? The reason most people would say that overall refinancing would be better in this situation is because they are scared off by the higher interest rate number, and they are conditioned to believe that a taking a second mortgage means you are in financial trouble. However, the total amount of interest that you would eventually repay on this smaller second morgage is far less than what you would repay for the larger refinanced mortgage.
—-A Common Mistake When Refinancing For Lower Interest Rates—-
Everybody should agree that it makes sense to refinance your mortgage if you are able to secure a lower interest rate, but at what point does this strategy become profitable?
When most people go about trying to find the answer to this question, the two things that they compare are only their current interest rate and the interest rate they will get if they refinance. The one thing that they will often forget, and the thing that you now know to take into account, is the COST that the new bank or lending institution will charge for the refinancing.
Depending on the bank, the current prevailing interest rate, and the amount of the mortgage, this cost can sometimes be large to the point that it will actually negate the money that you save from the lower interest rate!
TREVOR
In order to talk about and understand what you should NOT do when refinancing your home mortgage, we should begin by covering some basics about mortgages, refinancing, and a few of the reasons why anybody would want to refinance in the first place.
In terms of the actual nature of a mortgage, there is very little difference between a mortgage and a loan except that a mortgage is always for a home, it is generally paid back over a longer period (5-40 years), and the home itself is used as collateral. Because the real estate that you are buying is used as collateral, this is what is referred to as a ’secure loan.’
When a borrower (you) and a lender (usually the bank) agree upon the terms and time frame of the mortgage, one of the most important things that is in question is the Interest Rate (usually cited as an APR percentage, meaning annual percentage rate). This determines how much the borrower will eventually pay back to the lender.
There is a very simple concept that has been practiced for centuries that is at the heart of an interest rate. If Party A lends money to Party B, and Party B agrees to pay back that money at a later date, Party B will always pay back MORE than the total amount borrowed simply because they had the use of that money over the specific arranged timeframe.
When it comes to refinancing a home loan or mortgage, many people have heard of it and know they can save money this way, but might not know exactly how to do it. When you decide to refinance your home loan, you will work with a different bank or lender that will purchasing the remaining amount of your existing mortgage and provide you with a new one, and you will instead make monthly payments to this new bank.
Although the majority of families looking to refinance their mortgage wish to do so to take advantage of lower interest rates, a few other reasons would be to raise a lump-sum of cash, or to secure against possible volatility in their interest rate values. This last reason, preventing the possible raising of interest rates, usually amounts to switching from an adjustable rate mortgage (ARM) to one with a fixed interest rate.
When a borrower wishes to refinance their mortgage to obtain immediate cash, this is called ‘Cash-Out Refinancing,’ and many people make costly mistakes in this process which you will learn to prevent below.
—–Mistakes To Avoid With Cash-Out Refinancing—-
Cash-out refinancing is borrowing more than the total cost of your home in order to have a chunk of cash left over after you have repaid your existing mortgage.
If you are looking to get some cash to work with using a mortgage, this simply means that you are getting a loan based on the value of your home, with the home itself as collateral. You have to options when it comes to getting cash this way, and the one that you should use depends on what interest rates you are able to secure with each. You can either obtain a second mortgage for the value of the amount of cash that you need, or you can let your new bank know that you need the value of your new mortgage to be HIGHER than the value of your existing one.
Now when most people hear about taking a second mortgage out, their brain tells them that they must avoid this at all costs as it may put them further in debt. But this is not always right, because usually with cash-out refinancing the bank or lender will charge you a higher interest rate than if the value of your new mortgage was THE SAME as your old one.
For the sake of ease and simplicity, let’s just use some basic round numbers in this example: The existing value to be repaid on your mortgage is $200K, and you need $20K cash for something like a hospital bill (or maybe a generous donation to your Tropical Vacation trust fund). You can either obtain a $20K second mortgage at 12% interest, or you can refinance your existing mortgage to $220K at 7%.
Which one is better? The reason most people would say that overall refinancing would be better in this situation is because they are scared off by the higher interest rate number, and they are conditioned to believe that a taking a second mortgage means you are in financial trouble. However, the total amount of interest that you would eventually repay on this smaller second morgage is far less than what you would repay for the larger refinanced mortgage.
—-A Common Mistake When Refinancing For Lower Interest Rates—-
Everybody should agree that it makes sense to refinance your mortgage if you are able to secure a lower interest rate, but at what point does this strategy become profitable?
When most people go about trying to find the answer to this question, the two things that they compare are only their current interest rate and the interest rate they will get if they refinance. The one thing that they will often forget, and the thing that you now know to take into account, is the COST that the new bank or lending institution will charge for the refinancing.
Depending on the bank, the current prevailing interest rate, and the amount of the mortgage, this cost can sometimes be large to the point that it will actually negate the money that you save from the lower interest rate!
TREVOR