Tag Archives: Mortgage

Reverse Mortgage Basics

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Transcription:
Hello, and welcome to Your Money 2.0. I’m Justin Lally, a reverse mortgage specialist at Cambridge Credit Counseling Corp. Over the next 20 years, over 70 million baby boomers will be entering a retirement, and if current statistics are correct, a large percentage of these individuals are woefully underprepared. According to reports from Reverse Mortgage Magazine, only 38% of baby boomers had saved enough to get them through retirement. Although that statistic in and of itself is unsettling, a review of the overall retirement landscape is even more startling. Approximately 78 million Americans have no retirement savings plans. The sad fact is social security will do little to accommodate the financial circumstances of retirees, and many may need to rely on the equity in their home for survival.

Some of you may be saying, “That’s what Social Security is for.” Well, Social Security was never intended to be the sole source of income for retirees. Social Security was created to provide retired persons and with the resources to cover basic expenses. When it was established, the average life expectancy was 65 years old; however, the average lifespan for Americans has increased by almost 30 years. Needless to say, this has compromised the effectiveness of Social Security. The average senior citizen receives ,000.00 a month for Social Security; however, their median annual expenses are ,000. The math alone tells us we must do far more to build appropriate retirement funds.

For those of you who are retired, or will soon be, there are financial tools available to help you if your retirement savings are lacking. A reverse mortgage enables homeowners who are 62 years or older to convert part of the equity in their homes to subsides retirement. The unique aspects of a reverse mortgage can provide much needed funding without having to sell the home, transfer title, or take on a new monthly mortgage payment. In essence, a reverse mortgage is a regular mortgage reversed – instead of the homeowner making payments to a lender; they receive money from the lender. Reverse mortgage loan advances are not taxable, and generally don’t affect your Social Security or Medicare benefits.

There are three types of reverse mortgages homeowners can choose from, each with its own purpose. A Single-purpose reverse mortgages is generally the least expensive, and restrictive option. These mortgages are offered by state and local government agencies and nonprofit organizations. As is indicated by their name, this type of reverse mortgage can be used for only one purpose, which is stipulated by the lender. Homeowners can also apply for a Home Equity Conversion Mortgages (HECMs) which are backed by the U. S. Department of Housing and Urban Development (HUD). And finally, proprietary reverse mortgages are private loans that are backed by the companies that develop them. The proceeds from a HECM or proprietary reverse mortgage can be used for multitude of options including supplemental retirement income, home repairs, meeting healthcare needs, preventing foreclose, and so on.

Before applying for a HECM, and some proprietary reverse mortgages, you must receive a counseling session as a condition of financing. The counselor must review additional options available to the homeowner, including home equity conversion options currently available. Furthermore, the counselor will discuss the financial implications of entering into a reverse mortgage, including tax consequences and the impact of a reverse mortgage on the homeowner’s estate. Most counseling agencies charge around 5 for their services, and the fee can be paid from the loan proceeds.
Just how much can a reverse mortgage add to your retirement portfolio? The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, and the lower the interest, the more you can borrow. To learn more about reverse mortgages, please visit www.aarp.org/revmort, a website established by AARP’s Reverse Mortgage Education Project or contact your local HUD Certified Housing Counseling agency. Well, that’s it for this edition. As always, we welcome your feedback and ask for your thoughts and suggestions by e-mailing us at yourmoney2@cambridgecredit.org. Thank you for watching. Until next time, I’m Justin Lally for Cambridge Credit Counseling.
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Want to know how much you would qualify for?
https://reversemortgage.wufoo.com/forms/free-personalized-reverse-mortgage-information-kit/
“How Does a Reverse Mortgage Work?” is clearly and simply explained in this short video. Completely understand HECM in 4 minutes.

Hi, I’m Deborah Nance and today we’re going answer the question – “How Does A Reverse Mortgage Work”

So here we go. First the lender must determine the loan amount. They will use a formula set out by FHA that takes into account the value of the home, the age of the borrowers and the current interest rates to determine the loan amount.

Once they know what you qualify for, then they will want to know how you would like recieve your loan funds. The closing costs of the loan will be rolled into the loan itself. This means you will have a starting balance equal to those costs plus any other funds you decide to take at closing.

Perhaps you have your home paid off and do not need to have all of the loan money right now. You could choose to take the loan proceeds in the form of TENURE, (a monthly payment for as long as you live in the home.) In this scenario, on the first of every month you would recieve tax free funds from the lender. Each month you would also recieve a mortgage statement showing you the prior month’s loan balance, the amount of the payment to you, the amount of interest and insurance charged and the new loan balance.

Or perhaps you would like to have all the loan funds ready and available as you need them, in a line of credit. In this scenario, you would receive a statement each month from the lender showing the existing loan balance, and the amount of funds previously available in a line of credit. The statement would also show any withdrawals you made from the line of credit the prior month and the new available line of credit.

One of the coolest features of this particular scenario is that the line of credit on a reverse mortgage grows over time. The amount available to you in a line of credit grows at a rate equal to the rate charged on the loan itself, plus 1.25%. So, a reverse mortgage line of credit in the amount of 0,000 today could be 4,000 plus next year. That is a great incentive to limit your withdrawals for emergencies building up the line of credit over time so that when you are 70,80, or 90 and really need the funds for home health care or other emegencies, you have more to draw from.

Another scenario would be to take all the money right now. Maybe to make a major purchase, like a second residence or investment property.

The last (and most popular) scenario is to combine the different payout options. Perhaps taking some funds at closing to payoff other debts and leaving the rest of the proceeds in the growing line of credit. It’s your choice. I have had clients who choose some cash, some line of credit and a tenure payment as well. It’s up to you.

If you currently have a traditional or forward mortgage, you can use the reverse mortgage to pay it off. In fact it is required by the lenders that any existing mortgages on the property must be paid off with the reverse loan proceeds..

You know the bank is going to make money on the Reverse Mortgage, right? They’re a bank, that’s what they do. I mean really!… they’re in those big tall buildings downtown and they are happy to make money off the millions of us living in our little home sweet homes.

Basically, the banks and investors are just very patient. They wait. They wait until you die, sell, or permanently leave the home due to medical reasons. Then all the funds that have been borrowed, plus all the accrued interest and insurance is due and payable. Usually the heirs will sell the home, payoff of the reverse and keep the change. But, if the home does not have enough value to payoff the balance, then what? This part is pretty cool….The reverse mortgage is a non-recourse loan. This means if the proceeds from the sale of the home are not sufficient to payoff the mortgage the bank has “NO RECOURSE” to the borrower (or their heirs) for the shortfall. So, the worst that can happen is that your kids get nothing from the home when you pass away.

Well that took a little longer than I thought, so thanks for sticking with me.I hope you found it to be helpful. I’d appreciate you leaving a comment and any other questions you might have in the comments section below. I’ll be answering more questions in the following weeks so don’t forget to Subscribe to my YouTube Channel and be notified when a new video is released.

If you want to know specifically what you or your parents might qualify for on a reverse mortgage, please click on the link below to provide me with the basic information needed for an analysis. You’ll have your numbers in no time at all!

The postings and opinions on this site are my own and do not necessarily represent the position of my employer.
Deborah Nance, NMLS#202003 Equal Housing Lender

Complimentary Mortgage Complimentary Forever Tips

To Retirees Just who Dream to-be Mortgage complimentary forever But incapable of Get Started

Are you about to retire but nonetheless have a large mortgage repayment in retirement?

what are Next Step?

Do you really know how to purchase the stock exchange while increasing your investment? No, people usually do not. Outside a monthly or weekly payment to their 401K, the average man or woman’s understanding of the monetary areas will be based upon the information and knowledge delivered to all of them by their companies.

Are you a specialist in buying the stock market?

If not, dont be discouraged. It is not your fault you aren’t an expert. It will take years of research and training and thats everything you pay a professional for, to deal with your assets even in the event it’s your 401 k.

Without a clear objective and objectives you might be bound to lose finances even if you are handling your own money or having an expert control your nest egg.

If you wish to grow your web well worth rapidly with an investment you’ll understand relatively well and get a grip on, then real-estate remains among the best opportunities you could make. And even if for example the residence value falls there’s no reduction to you and in case you hold this for a long time the worth will increase once again and you also return your entire gains.

What Happens if your home loan Is Paid Off Early

We are normally required into believing that people have to pay down our mortgages over 30 years or longer and thats just the way it really is supposed to be. But do you know making use of a system like home loan free for a lifetime can accelerate the method, without altering your chosen lifestyle?

Paying extra to your mortgage key on a monthly basis or biweekly is certainly one solution to eradicate your home loan quicker and reduce home loan interest.

But this involves some sacrifice from you. Your extra money happens to be being applied to your home loan in the place of you using these resources to spend or save your self disaster funds for the rainy time.

Are you in a fortunate circumstance where you can regularly spend much more towards your mortgage key monthly?

Dont forget that however wish to pay-off your home loan faster it creates monetary feeling to possess a well-balanced profile and invest during the same time

Do you know as you are able to expel your home loan faster without investing a lot more of your personal money and make use of the excess money you have got for investment purposes and at once be home loan free for life?

Accelerate Your Mortgage Payoff

Paying off your home loan in less than half the full time is very easily accomplished by utilising the mortgage no-cost for life system.

The home loan speed procedure addresses the truth that banks and financing establishments front load your loans with rates of interest, very high passions rates sometimes.

Using a mortgage acceleration system like Mortgage Freedom for life, you could effortlessly save thousands in interest in place of spending this into lender. And you can cut your home loan, and spend this in record time.

Making use of a financial calculator, a professional can show you tips accelerate your home loan.

Of program there clearly was a hidden system behind the home loan free for life program.

A HELOC (Home Equity credit line) is the secret to repay your mortgage and residing home loan no-cost for a lifetime.

Since the HELOC is very reasonable since the prime interest is reduced, within market the rate on your own HELOC is below your mortgage price. By utilizing your HELOC as a checking account you can make the most of this low-rate and instantly repay your home loan 15 years faster without a modification of your finances

You may be tempted to re-finance your mortgage to drop your monthly obligations. It seems sensible to do this as soon as your mortgage rates have dropped. By refinancing it generally does not make any difference toward term associated with mortgage. The home loan needs to be repaid.

Life Without A Mortgage

One explanation to repay your home loan is always to make use of the equity in your home to fund your children university training.

An simple way to make a stream on month-to-month passive earnings is by using the equity at home to finance the down-payment of a good investment property. The rental you can earn through the home might be regularly pay the home loan about this investment residence in addition to extra could be passive earnings within pocket.

Take action using Mortgage complimentary for a lifetime Program. It will be the best financial investment there is to cut many years off your property without spending more or altering your chosen lifestyle.

With regards to mortgage free for life calculator , getting the right information may be a daunting task. That’s why we built this private report for your needs at Mortgage Free For Life

The 5 Reverse Mortgage Interest Rate Picking Arguments

If you are a senior, who thinks that it is not that important, which reverse mortgage interest rate you select, because nothing will be paid back during the running time, please change your attitude right away! The interest rate is one of the costliest element in the final costs.

1. The Longer The Running Time, The More Difficult Is The Predict The Rates.

The interest rate is the cost of the money, which the lender uses to pay his interest rate, the operating costs and the profit. The central banks regulate the economy with the interest rate. When the rate is low, the borrowers take more loans and when it is high, the demand of the loans decreases. The loan amount influences on the operating costs of the borrowers and thus to the whole economy.

We can quite sure say, what is the reverse mortgage interest rate for the next year, but it is quite difficult to predict the average rate for 20 years, for example. Here also the history is not a good source of prediction, which we have seen during the finance crises, for instance.

The longer is the running time of the reverse loan, the more difficult is to predict the development of the economy and thus the interest rate. But if the borrower uses his or her own, strong idea of the rate development, then he may trust on that.

2. The Variable Rates And The Risks.

the variable rate means, that the rate follows some index during the running time of the loan. This means, that the rate can exceed the fixed rate alternative, but also be below that. This rate is for a risk taker, who trusts that the market rates work better, than the fixed rates.

3. The Fixed Rates And The Risks.

The good feature of the fixed rate is, that the borrower knows in advance, how much the rate will be for every single year of the running time. This helps the financial planning and gives quiter nights. If the borrower is interested, he can calculate afterwards, what would the difference have been between the variable and fixed rates.

4. Remember, That You Pay Interest On The Top Of The Earlier Interests.

Because with the reverse loan nothing will be paid back during the running time, all costs will be accumulated. This means, that the total loan amount includes the original capital, all earlier interests and costs and fees. So the borrower pays interest, which is calculated every year, or month, based on the total loan amount, which he owes.

5. Trust On The Idea, Which Fits To You.

Because nobody can say, what reverse mortgage interest rate is better for the whole running time, the solution to select one is to trust on your own idea. If you want the risk free alternative, then your choice is a fixed rate, but if you think, that the variable market prices fit to you, then the variable alternative is for you. It is wise to talk with the reverse loan counselor or your bank manager to get the expert view also. However, the responsibility is always with the borrower.

Juhani Tontti, B.Sc., Marketing. Note, That The
Reverse Mortgage Interest Rate Is The Biggest Item In The Final Costs Of The
Reverse MortgagesMake A Selection. Which Fits To You And To The Length Of The Loan. Visit:
Reverse Mortgage

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the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
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Utilizing A House Equity Credit Line (HELOC) To Pay Off Your Mortgage In 5-7 Years

Get our COMPLIMENTARY book that shows how exactly to pay off your home in 5-7 years on your existing earnings: http://bit.ly/2g92pbQ

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If you’re attempting to repay your property faster in your present income, you should think of getting property equity personal credit line or a HELOC as they are called and you will repay your property in 5-7 many years. This video helps guide you.

Transcript

Hey gang, Michael Lush. I am a fourteen recovering home loan banker. The thing I need communicate with you about today may be the rules of that which we instruct, making use of property equity line of credit to repay your mortgage in five to seven many years virtually without altering your financial allowance. The thing I wish to show you dudes these days is some concept that i ran across about four years back. I experienced a mentor of mine, a very rich individual, explain this in my opinion. One this he explained to myself is that a checking and savings account is actually a liability. I always looked at it as asset which actually astonished myself.
I was thinking if you had a bunch of money into your checking and savings account, that’s a lot of an asset. In fact I was completely wrong because these days banking institutions are providing about a zero % price of return on your checking and family savings. However rising prices goes through to average about one-point six per cent. Officially your hard earned money is moving backwards. Exactly what he explained to myself is that money cannot stay stagnant, it is both reached north or south.
You’re actually losing profits day-after-day by placing your money in a checking and checking account, therefore your checking and savings becomes a responsibility. Everything weare going to do is you want to show you just how to sidestep that systemic issue as well as make use of a house equity line of credit as your bank checking account, because what exactly is cool about a property equity credit line is it’s open ended. Cash can move around in and out freely, twenty-four seven, 300 and sixty five times a-year. Instead of making use of your bank checking account and enabling the bank to then turn around and give a money-back for you in the shape of mortgages, credit card and car loans, we are really planning to use a house equity personal credit line. You are going to deposit your entire money into a house equity personal credit line just like it had been your bank account and then you’re going to pay your bills out of it like everyone else would since a checking account.
By doing that you’re actually likely to speed up the payoff of mortgage and cut your mortgage at least by 1 / 3. Hold-up. I don’t believe that’s right. You’re cutting by two thirds in fact. You’re getting it paid one third at a time. As opposed to having thirty many years to fund home financing you’re really planning to get a home equity line of credit utilizing your existing cash flow and nothing more, perhaps not having to pay even more, maybe not having to pay less, simply switching in which your cash goes whileare going to get a property equity credit line compensated of in five to seven many years.
Today here is the basic concept of that which we instruct. We really go further comprehensive therefore we get in some incredibly advanced strategies that may accelerate it even more. This will be an excellent device to construct wealth so we go into those also. Be sure to have a look at our other videos and sign up for our channel right here. Look ahead to hearing away from you. Be careful gang, God-bless. Thanks for seeing the video clip, if you want this one I really picked two more available that you can watch here. No.
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Michael: This way?
Speaker 2: Yeah.
Michael: really we picked out two even more available that I’d like for you to watch. When you are getting done I would also prefer to you donate to our station, be mindful.
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Noteban से होगा जबड़ा फायदा, Deposit Money को Inexpensive Mortgage के तौर पर बांटेगी Modi Govt.

Looking to increase the housing industry, the Modi government is mulling a new scheme that could use-money from the demonetisation drive. Based on report, the government is keen to improve the housing sector via an innovative new plan and it is already in discussion aided by the RBI. The brand new housing plan may be established as soon as the Union Budget 2017, that will be expected to be presented on February 1. It’s stated that the final contours associated with housing system are going to be determined after the details of revenue earned from demonetisation emerge. The report proceeded to incorporate that the federal government is eyeing mortgage into the range of 6-7per cent for mortgages to Rs 50 lakh. This brand-new lower interest option of 6-7percent is open to first-time consumers and it is more likely to offer a much required impetus to the housing marketplace.

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अगर आप भी home loan लेना चाहते है, तो ये विडियो आपके लिए है, क्योंकि इस विडियो में हमने mortgage से जुरु सभी जरूरी बाते आपको बताया है. होम लोन लेने की लिए क्या-2 Eligibility होनी चाहिए, ये सब बाते इस विडियो में बताया गया है.

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What happens to a second mortgage in a loan modification?

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Audience Inquiry: What takes place to a second home mortgage in a financing alteration?
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Records For Mortgage or House Home loan.

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Mortgage for Poor Credit

poor credit credit card
by TijsB

It is a commonly held belief that a poor credit score makes it almost impossible for a person to qualify for a home loan. However there are lenders willing to make home loans to people with bad credit if they are in a financial position to meet their requirements.

The added price tag that comes with a low credit score when applying for a home loan is high interest rates, high down payments and high fees/points. Poor credit mortgages can carry interest rates in the 10 percent to 15 percent range with a down payment of anywhere from 20 percent to 50 percent of the purchase price and upfront originating fees of as much as 10 points (1 point =1% of the loan).

Bad credit mortgages also typically carry high fee structures. While a first time home buyer with excellent credit might find them self looking at a one point originating fee a person with poor to bad credit could be looking a five to ten points either paid upfront or added to the principle.

It is obvious that it is far more desirable to have a high credit score when looking for a mortgage however most people just decide that they want a home, call a Realtor and jump right into the deep end without any thought into the process of credit repair.

If you want to buy a home but your credit score is in the lower ranges the first thing you need to do before you consider getting in touch with a real estate professional to arrange viewings is to get your credit report and go through is thoroughly to try and find ways of raising your score.

Simply paying off or paying down credit card balances can have a large positive affect on your credit score. High credit card balances in ratio to the credit card limit are seen as risk to the lenders and result in lowering your credit worthiness which in turn lowers your credit score. Try to keep your carry over balance at no more than 30% of your limit. If you have more than one card try to spread the balances over all the cards.

Check through your credit file for outstanding payments or judgments are dragging your credit score down. Many people feel that they have moved on from the old cell phone bill or utility bill that the neglected to pay for what ever reason and have now totally forgotten. The trouble is that your credit file holds its memories for 7 years and bankruptcy memories for 10 years.

If you find on old unpaid bill like a utility bill for an apartment that you moved out of years ago and forgot to pay then call the creditor and arrange to pay it off in return for having it removed from your credit report.

A word of caution however, most delinquent bills are sold off by the original creditor at a discount to collection agencies. The business model of collection agencies is to get paid period. Remember that the collection agency did not report you as delinquent to the credit bureau, so if you are negotiating to have the negative entry removed in return for satisfying the debt, ensure that you have written confirmation that it will be removed or altered to positive wording from the party who mad the report in the first instance. Do not trust the collection agencies word, they will say anything you want to hear until your check has been cashed and then you will be on your own.

If the only reason you are paying off a debt is to have the negative information removed from your credit report it is of the utmost importance that you have a confirmation in writing from the original lender stating that the issue will be dealt with in a particular fashion that satisfies your needs.

So don’t just accept the fact that you have to pay high interest rates, large down payments and exorbitant fees to get into a home loan because your credit score is low. Be proactive and work on your credit report before you apply, you will be financially rewarded.

If you are interested in applying for a bad credit mortgage or in how to locate and apply formortgages for poor credit we have a wealth of free information at Mortgages for Poor Credit.

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