Affordable Home Loans

January 21, 2012

Important Points When Acquiring The Mortgage Refinance Rates That Are Right For You

Filed under: Home Loans — admin @ 5:47 am

Important Points When Acquiring The Mortgage Refinance Rates That Are Right For You

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Home Page > Finance > Mortgage > Important Points When Acquiring The Mortgage Refinance Rates That Are Right For You

Important Points When Acquiring The Mortgage Refinance Rates That Are Right For You

Posted: Jan 19, 2012 |Comments: 0

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In the present day, investing in a home is not difficult to perform as home loans and mortgages are available. The acquiring process has been created even easier and also stress-free through the internet. You’ll be able to acquire the very best mortgage refinance rates online as you hunt for more loan companies. The trends in the actual interest rates are continually altering within the mortgage sector which just a few people could understand. This has been the leading reason why current mortgages are accessible with high mortgage rates enabling borrowers to pay more than what they’ve to. The scenarios in the mortgage industry can just be assessed by finance experts who could also make a few forecasts to a certain extent. For that reason, after you talk with your financial counselor, you can choose modified refinance mortgage rates.

Certainly your existing mortgage rates must not be higher than the refinance mortgage rates. You’ll be able to use the saved funds to cover outstanding debts, home bills and credit card dues. In addition, the money could be utilized for private requirements like medical, home remodeling or perhaps wedding expenditures.

Refinancing mortgage rates which are lower than the existing ones also lower the risks associated with switching from variable interest rates to fix ones. These also prolong the terms of the loan and minimize the per month payments. Furthermore, mortgage refinance rates that are lower also aid in raising house collateral that can be converted into money which can be used for some other requirements. Therefore, mortgage re-finance is a means to combine your debts into one loan. When you make the repayments responsibly and also quickly, you’ll have a great paying background in your lender’s book and your own credit rating would be perked up.

In your choice of the best mortgage refinance rates, a full understanding of the process is important. You could deal with your existing lender and obtain latest mortgage rates together with new conditions and terms which are suitable for you. Nevertheless, you can also negotiate with some other lenders. You could also obtain quotes for refinance mortgage rates coming from different lenders and utilize a mortgage calculator to confirm the sum of your payments each month as well as interest rates. When you use the mortgage calculator smartly, you will be able to evaluate that ideal mortgage rates to suit your needs. Prepare a comparison of your conditions and terms which loan companies provide and choose the best one.

To make sure that you get the most of your investment, it is necessary that you look around smartly and choose the ideal deals on the internet. At some things, the contest between mortgage providers can benefit you particularly when you wish to get the most appropriate refinance mortgage rates for your own certain framework and requirements. If you believe you should get a mortgage refinance, you should be careful of the trends in mortgage rates for two weeks and figure out the main difference in how various loan companies fluctuate their own interest rates.

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About the Author:
Secure your financial stability right now and start looking the most suitable Mortgage Refinance Rates on the web.
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January 20, 2012

Mortgage For First Time Home Buyers

Filed under: Home Loans — admin @ 9:17 am

Mortgage For First Time Home Buyers

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Home Page > Finance > Mortgage > Mortgage For First Time Home Buyers

Mortgage For First Time Home Buyers

Posted: Jan 18, 2012 |Comments: 0

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At some point of the person’s life there is a moment when he wants to move to the place of his own! You can decide to buy a home or build your dream home. A lot of people discard an idea of purchasing the house because of the idea of paying for it throughout time. It is true there are many technicalities involved before you can finally have that house you have been eyeing that’s why this guide will let you, especially if you are a first time home buyer, know all about real estate, mortgage calculators, and mortgage rates.

Real estate is defined as property that includes land and the buildings on it. All the natural resources consisting of crops, minerals or other immovable properties are classified under real estate. In aspects of business, it entails buying and selling or renting buildings, houses and land.

In order to own a house without having to pay outright a mortgage was created. The real property secures the house that you are going to buy. The proof of the loan will be your mortgage note. It consists of two payments the interest or cost of borrowing and the principal, which is the money you have borrowed.

The mortgage rate is the interest you pay on your mortgage. It can increase over time, for example, in situations such as the upside down mortgage which results due to a home having negative equity. This is bound to happen if the market for real estate declines. Checking internet or the stock exchange rates in your country will help you a lot in being up to date with the mortgage rate fluctuations.

Current and potential home owners normally use mortgage calculators to know exactly how much to pay back monthly or within other period of time. With them, comparison of costs, interest rates, and payment schedules is made possible. You can also utilize it as a tool to figure out the changes in mortgage if some of the factors change like the principle payments.

Since the increase of the real estate industry in recent years, first time home buyers are going to be confused because of the big number of agencies and offers. There are a lot of wolves in sheep’s clothing on the increase and it is of vital importance to be extra cautious.
With a knowledge of the mortgage calculator, mortgage rates and all that entails real estate, as a first time home buyer, you will be well armed and confident in making the right choices pertaining to your dream home!

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About the Author:
Use our cost-free – user friendly – mortgage calculator to calculate your monthly obligations. In addition read some of beneficial tips for a first time home buyers plan along with mortgagecalculatorcanada.net
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January 19, 2012

Release Home Equity- Makes Retirement Period Secure

Filed under: Home Loans — admin @ 6:18 pm

Release Home Equity- Makes Retirement Period Secure

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Home Page > Finance > Mortgage > Release Home Equity- Makes Retirement Period Secure

Release Home Equity- Makes Retirement Period Secure

Posted: Jan 17, 2012 |Comments: 0

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Equity release schemes are most excellent options to opt for in order to secure winter days

A variety of kinds of monetary schemes and plans keep coming up each day which may make sure that the winter days that is the old age of the individuals can move ahead smoothly, especially in the period of the post-retirement when the constant source of earning is stopped and all one have is the meager earning coming from the pension money.

After an individual gets retired from their work, several constraints arrive particularly in the monetary areas. With the insufficient retirement fund, it turns out to be truly hard to meet up each of the needs of their life. Individuals can opt for release home equity in order to obtain a tension free and secured post retirement life. For this reason, individuals may seek companies providing equity release schemes which will eagerly lend a hand to individuals to identify with the idea, the returns along with the reimbursements of releasing home equity against their residential property. While making comparisons with other post retirement schemes and plans for retirement, the plan of releasing home equity can be the most evident and excellent choice for any individual to secure their winter days.

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Releasing home equity implies giving whole or part of your home to the lender

When individuals release equity home, they in reality give out their residential property or a certain portion of their home to the providers of the equity against a definite amount of money. Choices are also provided to the individuals availing the equity in terms of obtaining the money as well.

The companies providing individuals the release home equity have to obtain the information regarding the method of payment people would like to go for. Individuals may either extract the entire price of the release equity in home at a time that will fetch them a lump sum amount of money. If they do not wish to obtain the entire value at a time then option is there for the individuals to get the money repaid in monthly installments, they may select that as well. Once selecting this option they are going to obtain payment on monthly installments basis. This will save their money and make improvement in their monthly budget too. And most prominently, individuals are not required to leave their dwelling place even after they release equity home.

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About the Author:
Hans Cruze is a professional author who writes articles on release home equity and release equity home . For more information he suggest to visit http://www.therightequityrelease.co.uk .
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January 18, 2012

Mortgage News – How the economy benefits from new home construction

Filed under: Home Loans — admin @ 7:57 pm

Mortgage News – How the economy benefits from new home construction

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Home Page > Finance > Mortgage > Mortgage News – How the economy benefits from new home construction

Mortgage News – How the economy benefits from new home construction

Posted: Jan 16, 2012 |Comments: 0

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New housing construction has always had a positive impact on our economy. The effects reach across many different sectors from home loans to creating new jobs and supporting our communities thru tax revenue.

The home loan sector supports growth in many areas. Investors are able to put funds together that benefit banks, lenders, private parties, buyers, sellers and more. The effect of people being able to borrow money puts real estate brokers to work, house inspectors, appraisal services, lawyers and title companies. Some of these areas are now experiencing growth that opens up opportunity for those who are familiar with these services but have been out of work because of the recession.

NAHB estimates that 3 new jobs are created for each new house that is built in our country. Of those 3 jobs, about half go to the construction industry and the rest to other sectors. Some of the industries impacted the most are lumber, electrical contractors, architects and HVAC. The really good news is most of what goes into a new home is made in the USA not in China or some other overseas country. Manufacturing here at home is a big part of keeping our economy moving forward in 2012 and the years to come.

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Tax revenue is a sometimes overlooked aspect of recovery. Houses that are built and sold to families provide revenue that is used in many ways both locally and on a federal level. These tax dollars go to our schools and have impact to our communities. Tax dollars provide jobs at the government and state level. The estimates from NAHB are staggering. They report each new home built will generate a total of $90,000 in government revenue. This breaks down to $67,000 in federal taxes and $23,000 for local and state taxing authorities. 

When it comes to getting our economy back on track, putting Americans back to work is the natural order for a solid recovery. Housing is an industry that can help get this done. When our economy is running at a normal pace, housing accounts for about 17% of our GDP. Right now our current rate of construction is approximately 628,000 total homes being built annually. Our typical trend is about 1.7 million new homes being built in a 12 month period. Looking at numbers like that, you can see we have the potential to put 3 million Americans back to work who also contribute to supporting our economy. More than ever, focus needs to be put on our housing industry because of the far reaching impact it has on so many Americans.

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About the Author:
For more details or if you have any questions, please feel free to contact us. A representative will be happy to answer your questions.Perry McHowton
House Mortgages
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Reverse Mortgage Information: Selling the Home After a Reverse Mortgage

Filed under: Home Loans — admin @ 4:46 am

Reverse Mortgage Information: Selling the Home After a Reverse Mortgage

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Home Page > Finance > Mortgage > Reverse Mortgage Information: Selling the Home After a Reverse Mortgage

Reverse Mortgage Information: Selling the Home After a Reverse Mortgage

Posted: Jan 12, 2012 |Comments: 0

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Before getting a reverse mortgage, seniors should take advantage of all the reverse mortgage information available to them. One subject commonly missed by seniors seeking reverse mortgage information is the topic of repayment. While it is true that seniors can defer repayment until they die or sell their home, a reverse mortgage will eventually become due. When this time comes, both borrowers and their heirs should know how to handle this important step in the loan process.

Can Seniors Sell Their Home After Getting a Reverse Mortgage?

When it comes to selling one’s home after taking a reverse mortgage, many seniors find much of the available reverse mortgage information confusing. The fact is seniors can choose to sell their homes at any time, but they should be aware that doing so will make their loan become due. To get the most from a reverse mortgage, borrowers should remain in their homes for at least a few years after getting their loan. Seniors who want to move in the near future might benefit more from the HECM for Purchase program, which allows seniors to purchase a home with a reverse mortgage.

Reverse Mortgage Information: How a Borrower’s Estate Is Handled After Their Passing

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While gathering reverse mortgage information, many seniors are also interested in how their loan will be paid off upon their death. Reverse mortgages become due once all borrowers named on the loan die. If there are two borrowers, both individuals must pass away before their lender can require repayment.

Since the borrowers would not be in a position to repay the loan themselves, the responsibility would be handed down to their heirs.  In this case, the borrowers’ heirs would have three main choices: sign the deed over to the bank, sell the home, or refinance the loan. If the balance of the loan exceeds the home value, heirs could avoid the responsibility of selling the home by signing the residence over to the lender.

If the home is worth more than the loan balance, heirs would benefit more from selling the home themselves. As long as the individuals make a good effort to sell the home, the lender should give them 12 months to find a buyer. Once the home is sold, the lender will be repaid, and the borrowers’ heirs will keep any remaining funds. It is, however, important to understand that the lender will expect the home to be sold for its appraised value. If the selling price is much lower than the appraised value, the lender might require additional payment. This keeps people from taking advantage of lenders by selling homes to family or friends at much discounted prices.

A borrower’s heirs can also repay their lender by refinancing the loan or liquidating other assets. Lenders do not dictate how reverse mortgages are repaid; they only require that the funds are repaid in a reasonable amount of time. To allow one’s children to inherit the family home, some borrowers also purchase life insurance policies that cover the balance of their reverse mortgage. While researching reverse mortgage information, seniors should look into the many different options their heirs will have for repaying their loan in the future.

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About the Author:
Brittney is a financial services expert who prides herself on providing the most accurate reverse mortgage information. In her free time, she enjoys knitting, football, and spending time with friends and family. For more information, see http://www.reversemortgageinformation.com today!
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January 17, 2012

Know about cash out refinancing

Filed under: Home Loans — admin @ 7:50 am

Know about cash out refinancing

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Home Page > Finance > Mortgage > Know about cash out refinancing

Know about cash out refinancing

Posted: Jan 12, 2012 |Comments: 0

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These days, the idea of cash out refinancing has become very popular. Now, we discuss about, “What is a cashout refinance?’ This is a mortgage refinancing transaction in which the new mortgage amount exceeds the original mortgage. The difference between the new and the old mortgage is known as the cash out money that you can use for whatever purpose you want. The main purpose behind cash out refinance is to extract your equity from your home. This also serves as an alternative to a home equity loan.

A cash out refinancing is an excellent way available to you to access equity in your home to pay off your debts or to make additional purchases. Before opting for cash out refinancing, you need to make a risk-based assessment or whether or not extracting equity from a home is economical. But while opting for a cash out refinance, you need to keep it in mind that it entails some costs. In fact, the rate of interest associated with a cash out refinance is higher than the rate of interest in the original mortgage. In order to better understand cash out refinance, we take the following example. Let us consider that you own a house worth of $120000 – with equity of $10000 and unpaid balance of $20000. Now, say that you would like to take out a new mortgage loan for $60000, to make some improvements in your home. You can use $20000 of the new mortgage proceeds to pay down the original mortgage. Remaining $40000 is the cash out money which is used for home improvements. Now, the remaining equity in your house is $60000.

Since mortgage is a secured loan, even people with poor credit are sometimes eligible for a mortgage refinance. You can use the cash out amount for a variety of purposes such as financing home repairs or renovations, paying tuition fees of the children, opening up a new business, investing in a financial opportunity, pay off credit card or medical bills, buying a new car, paying for a vacation, purchasing a second home etc.

Before opting for a cash out refinancing, you need to take into consideration several factors. Various factors which influence decision to opt for a mortgage refinancing may include state of the economy, mortgage closing costs, rate of interest etc. Given all these, sometimes it makes sense to opt for a second mortgage loan instead of taking out a mortgage refinancing. If the rate of interest associated with a mortgage loan is less and if you can avoid paying off closing fees, ten it would be wise to opt for mortgage refinancing. However, if the rate of interest on the new mortgage loan is substantially higher than the original mortgage loan, then it would be wise not to opt for cashout mortgage refinancing. Moreover, another factor that is very important is the amount of the new mortgage loan. Anyways, it is expected from you that the cash out amount is used for some gainful purposes.

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About the Author:
Jessica Bennet is a contributing financial writer at MortgageFit Community. She has been writing on finance for quite some time. She is an active participant in the forums wherein she helps people with suggestions to their mortgage problems.
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January 16, 2012

Fallen Behind on the Latest News? Get the Scoop from the Top Reverse Mortgage Blog

Filed under: Home Loans — admin @ 5:32 pm

Fallen Behind on the Latest News? Get the Scoop from the Top Reverse Mortgage Blog

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Home Page > Finance > Mortgage > Fallen Behind on the Latest News? Get the Scoop from the Top Reverse Mortgage Blog

Fallen Behind on the Latest News? Get the Scoop from the Top Reverse Mortgage Blog

Posted: Jan 12, 2012 |Comments: 0

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While reverse mortgages sometimes make headlines, consumers can rarely find up-to-date information in their favorite newspapers and magazines. To make up for the lack of mainstream news, seniors can get the latest information by following a reverse mortgage blog. For those who have fallen behind on their favorite reverse mortgage blog, here is the latest news that has the mortgage industry buzzing.

Are Financial Experts Finally Realizing the Full Benefits of Reverse Mortgages?

It is no secret that reverse mortgages have many critics. When Home Equity Conversion Mortgages (HECMs) first became available in the late 1980′s, several lenders did adopt some questionable practices. However, as these loans have matured, the Federal Housing Administration (FHA) has tightened their regulations. The days when lenders could take advantage of their borrowers are long since over. Unfortunately, it has taken a long time for the reverse mortgage industry to shake its negative reputation.

The good news is that the industry is finally starting to get the recognition it deserves. While reverse mortgages are not meant to take the place of traditional retirement planning, many esteemed organizations, including AARP and the National Council on Aging, now work to educate seniors on these loans.

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As many adults are acutely aware, the recent downturn in the economy has impacted retirees’ assets and made it harder to save for retirement. An article released by Investment News, an online news source for financial planners, reported that “reverse mortgages should be considered as a very valuable retirement tool by financial advisers of all types.” While there will always be critics, many reverse mortgage blog owners are noticing this well-deserved change in attitude.

Reverse Mortgage Blog Owners Discuss Possible New Loan Products

Many reverse mortgage blogs are also reporting that new loan products might be released in upcoming months. Currently, FHA has extended their $625,500 maximum claim limit on HECMs through 2012. Still, as home values continue to rise, the demand for jumbo propriety loans might also increase. This has reverse mortgage blog owners predicting that a new jumbo product will be released within the year.

However, people interested in a propriety loan should be aware of a few different things. First, these loans will not be insured by the federal government. Since these loans are not insured, it is likely that borrowers will be required to have a great deal of equity in their home to qualify. Still, if and when this product is released, it will be interesting to see how these loans differ from HECMs.

Another interesting piece of information predicted in several reverse mortgage blogs is that one major lender has proposed the idea of using the HECM Saver as a tool to be used by seniors who are not yet eligible for Social Security. While waiting for Social Security benefits, seniors would draw income from a line of credit made available through the HECM Saver. In theory, this would give seniors a low-cost way to turn their home equity into a source of income; thus allowing seniors to wait to claim benefits until they reach full retirement age, which would increase their benefits in the future. Regardless of whether this idea becomes a reality, the constant plans for new products prove that the reverse mortgage industry is one driven by innovation and continued development.

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About the Author:
Amber enjoys teaching people about financial products that can be used to further their quality of life without putting an extra strain on their pocketbooks. For more information on whether a reverse mortgage might benefit you, visit http://www.seniorreversemortgage.com.
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What should be done to lock in the best mortgage before the rates increase?

Filed under: Home Loans — admin @ 3:43 am

What should be done to lock in the best mortgage before the rates increase?

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Home Page > Finance > Mortgage > What should be done to lock in the best mortgage before the rates increase?

What should be done to lock in the best mortgage before the rates increase?

Posted: Jan 13, 2012 |Comments: 0

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The mortgage market in Turkey has been volatile recently due to the global economic uncertainties.  Since the last week of October 2011, banks have been changing the loan interest rates in an almost weekly basis. As a result, the monthly housing loan rates rose from less than 1.00% to 1.30% on average in a week. What should a prospective home owner do in such times?

According to Turkish Central Bank data, 1500 people on average take out a mortgage (“konut kredileri” in Turkish) every day. In other words, if the average closing time of 3 weeks is considered, there are thousands of people in the process of obtaining a loan or in search of it in any given day. Many of them have the following questions in their minds “Can I secure the low interest rates (“faiz oranları“) before missing them?” or “Can the bank increase my loan interest midway through the closing process? “

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In such turbulent times, rates and terms of different banks difficult to follow as they are in a constant flux and the spread between the best rate and the worst is wide open. Additionally, some banks can provide significantly better conditions than the published “list” rates to some customers, so that pays to have an insider’s view.

For many people, buying a house with a mortgage loan (“konut kredileri“) is one of the biggest financial decisions in their life. Already a complicated process, taking out a mortgage during market turbulence can become very difficult and getting professional advice can be critical. Working with a mortgage broker can be helpful in the following ways:

- Your advisor will have access to the latest interest rates and conditions of many banks before everyone else. She will have insights as to which banks can raise or drop their rates or whether she can get a special offer for you.

- If market rates rise while you are in the closing process, your advisor can help you lock-in your conditions and accelerate the process. 

- Some banks can change their conditions up until the date of title deed transaction while others are more flexible in this regard and can lock-in the offer on the date you submit the required documents into consideration. If you don’t want to take risks in this regard, your advisor can direct you to the correct address.

Here is another piece of advice: banks are obligated by law to provide customers a “pre-contractual information form” 1 day before the signing of the loan agreement. The interest rate and other terms on this information form will be your actual terms. Just in case, you should carefully examine this form before signing it. If there is something strange on it, talk to you advisor and the loan officer at the bank.

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January 15, 2012

The Fascinating History of Reverse Mortgages

Filed under: Home Loans — admin @ 12:58 pm

The Fascinating History of Reverse Mortgages

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Home Page > Finance > Mortgage > The Fascinating History of Reverse Mortgages

The Fascinating History of Reverse Mortgages

Posted: Jan 12, 2012 |Comments: 0

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The history of reverse mortgages is substantially more interesting than many would think. While reverse mortgages have only become popular in the past 15 years, these loans have actually been around for decades. Contrary to what naysayers often say about these loans, reverse mortgage history is teeming with generosity, financial innovation, and positive advancement.

The Early Reverse Mortgage History

Reverse mortgages first got their start in 1961, when financial professional Nelson Haynes of Deering Savings and Loan developed a product to help a woman by the name of Nellie Young. Mrs. Young was the widow of Haynes’ high school football coach and had been struggling since her husband’s death. To help the widow stay in her home, Haynes created a loan that allowed Young to convert a portion of her home equity into cash. Thanks to the banker’s innovation, the reverse mortgage was born.

While Haynes’ development was groundbreaking, reverse mortgages did not go public until 1977. Sixteen years after the birth of the reverse mortgage, Arlo Smith of Broadview Savings and Loan developed the Equi-Pay Loan. This loan also allowed borrowers to receive a portion of their home equity and defer payment until their home was sold. In 1979, the Wisconsin Department of Development created the Neighborhood Conservation Program. Like the Equi-Pay Loan, this program allowed struggling homeowners to withdraw some of their home equity.

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Reverse Mortgage History from 1988 to Today

Fast forward to 1988 when the federal government created the Federal Housing Authority Insurance Program. With the help of AARP, the federal government chose 50 American lenders who would begin offering government-insured reverse mortgages. The next year marked a milestone in reverse mortgage history. In 1989, the first federally-insured Home Equity Conversion Mortgage (HECM) was issued.

HECMs were so successful that the Federal Housing Administration (FHA) opened the program to all American lenders in 1998. That year, 7,896 were issued to seniors. In the next few years, these loans grew exponentially. In 2007, less than ten years after the birth of the HECM, 107,558 of these loans were given to seniors.

The past few years have been tough for the American economy. To help keep consumers in their homes, the government issued the Economic Stimulus Act of 2008. This law did two important things for reverse mortgages. First, it increased the maximum claim limit from $417,000 to $625,500. Secondly, the Economic Stimulus Act made it illegal for lenders to sell other financial products with reverse mortgages. This significantly cut down on the number of scams and made the reverse mortgage industry a safer place for seniors.

Yet, the history of reverse mortgages does not end there. Early 2009 marked the inception of the HECM for Purchase program. This program took HECMs one step further by allowing seniors to purchase a new home with the proceeds of their reverse mortgage. In October of 2010, the federal government made reverse mortgages more affordable by releasing the HECM Saver. This loan works just like the HECM Standard; the main difference being that the Saver slashes costs for seniors who want to borrow smaller amounts.

Reverse mortgage history is defined by constant growth and development. As these loans continue to mature, the reverse mortgage industry is sure to experience more positive change and continued success in the future.

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About the Author:
Amber enjoys teaching people about financial products that can be used to further their quality of life without putting an extra strain on their pocketbooks. For more information on whether a reverse mortgage might benefit you, visit http://www.seniorreversemortgage.com.
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January 14, 2012

What Borrowers Need to Know Before Getting a Reverse Mortgage for Seniors

Filed under: Home Loans — admin @ 8:45 pm

What Borrowers Need to Know Before Getting a Reverse Mortgage for Seniors

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Home Page > Finance > Mortgage > What Borrowers Need to Know Before Getting a Reverse Mortgage for Seniors

What Borrowers Need to Know Before Getting a Reverse Mortgage for Seniors

Posted: Jan 12, 2012 |Comments: 0

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A reverse mortgage is a loan that allows senior homeowners to convert a portion of their home equity into cash.  Unlike conventional mortgage loans, which require borrowers to make monthly payments to their lender, these loans actually pay the borrower.  Borrowers are not expected to repay their loan until they decide to sell their home, pass away, or stop using the home as their primary residence.  These loans were essentially designed to help seniors pay off their existing mortgage balance and enjoy financial security during retirement.

Reverse Mortgage for Seniors: Exactly How These Loans Work

To qualify for a senior reverse mortgage, consumers must be at least 62 years of age, own an approved property, and have little or no remaining mortgage balance. Approved properties include single family homes and two to four until residences, as well as manufactured homes and condominiums built after 1976. To get a reverse mortgage for seniors, a borrower’s home must also meet the minimum property standard set by FHA. If a home needs certain repairs, the funds necessary to complete these repairs will be taken from the borrower’s loan proceeds. This means that cosmetic and structural damage to one’s home will not necessarily disqualify the individual from getting a senior reverse mortgage.

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Individuals interested in getting a reverse mortgage for seniors must also attend one HUD-approved counseling session. During this session, potential borrowers will discuss the benefits and disadvantages of getting a loan with an approved financial counselor. After completing counseling, seniors will submit their application and counseling certificate to their lender.

Upon approving the application, the lender will determine how much the borrower is eligible to receive. Reverse mortgage payouts are based on a borrower’s age, interest rate, property value, and equity. Before getting a reverse mortgage for seniors, borrowers must also decide how they wish to receive their loan proceeds. Borrowers can choose to receive their money in one lump sum, a line of credit, monthly payments, or a combination of these options.

Is a Senior Reverse Mortgage a Good Idea?

One of the greatest benefits of reverse mortgages is that they let borrowers defer payment until they are no longer occupying their home as their primary residence. At this time, the home will usually be sold to repay the loan balance.  Because federally-insured reverse mortgages, or HECMs, are non-recourse loans, borrowers cannot owe their lender more than their home is worth.  This means that seniors can live in their home throughout retirement without worrying about mortgage payments and possibly enjoying extra cash.

Still, many people wonder if these loans are a good idea. Before getting a reverse mortgage for seniors borrowers are urged to consider all of their different options. One’s home equity is a significant asset, and the decision to get a reverse mortgage is not one to be taken lightly.  To protect this asset, seniors should avoid borrowing against their equity until absolutely necessary. However, for seniors who are struggling to make their mortgage payments, need money for large medical bills, or do not have enough cash to afford their daily expenses, a reverse mortgage can be a hugely beneficial financial tool.

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About the Author:
Amber enjoys teaching people about financial products that can be used to further their quality of life without putting an extra strain on their pocketbooks. For more information on whether a reverse mortgage might benefit you, visit http://www.seniorreversemortgage.com.
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