Some people gladly go through the process of mortgages, but few people realize the potential danger of reverse mortgages. But first, what is a reverse mortgage? It is defined as a loan available to seniors of a country (the legal definition of “senior” differs according to where you live), that is mainly used to release home equity in a certain property as multiple payments or one lump sum. Until the owner dies, leaves, or sells the house, the homeowner’s obligation to repay the loan is postponed. In its essence, a reverse mortgage is to convert the equity in your home into a cash amount. You may ask, “Why should such thing be dangerous?” The objective of this article is to enlighten you about the true risks involved in a reverse mortgage.
First and primarily, there are the laws of nature and man that render this risky: upkeep, taxes and insurance. If you do not maintain your taxes and insurance, the loan can be called or you may have an escrow account forced on you. This is because with reverse mortgages, escrow payments are subtracted from your monthly check.
Also, since these types of mortgages are being given to senior citizens, they may not be able to maintain the upkeep of the home. A loan officer has a lender’s policy regarding the maintenance of the home, and enough money should be kept to keep up the repairs, for fear of possible calling of the loan.
Second is the problem of repayment and possible forfeiture. If the home has an equity amount exceeding the amount that is owed to the bank, your heirs will receive the proceeds once you pass on. However, the home may be forfeited if your home is “upside down”, even though they have no obligation to repay your debt. With reverse mortgages, you will not be required to make payments for as long as you live.
There is also a cloying loop in the FHA rules, which state that “When you sell your home or not longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender.” The problem with this is that if you move away, even for medical or social reasons, the bank will call the debt due. This limits the freedom of movement of a homeowner.
Third is the issue of cost and interest rates. Almost all reverse mortgages, at the beginning, were almost exclusively given with adjustable interest rates. It remains a normal practice to have this offered, however unwise it may be. These should not be accepted, due mainly because today’s adjustable rates are going further and further up with the passage of time. These adjustable interest rates are a gamble—and certainly not advisable since fixed rate programs are now available.
High up to front costs remain a problem with reverse mortgages. An unperceptive victim may pay higher closing costs for reverse mortgages than traditional forward mortgages. It is recommended that people buy the insured typed of mortgages from the FHA.
© SOURCE: www.mightymortgages.com
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понедельник, 12 апреля 2010 г.
Tips to get the Best Mortgage Quote
Tips to get the Best Mortgage Quote Posted By : ratetake Most of the borrowers prefer to get the best mortgage quote before they actually settle in for a particular type of mortgage plan. There are many people who are on the look out for a professionally analyzed and well-researched mortgage quote that would suit a particular client and his situation. Here are a few essential tips to get the best mortgage quote which will help in getting the best mortgage quote and deal.
Tips for Saving Thousands on Your Home Loan Posted By : Mary Wise Taking a mortgage loan is probably the most significant financial decision in a family life as it will affect the family finance for many years to come.
Kinds of Money lenders There are different types of money lenders and this article deals with the different types of money lenders present in the market scenario. Some of the different types of money lenders.
Refinance Now To Save Thousands on Your Mortgage Posted By : ratetake Death and taxes - two things you know are for certain in life. However, there is a third that is almost nearly as certain as those two - fluctuating interest rates. With a home mortgage being one of the largest purchases you will ever make, even the slightest decrease in the rate that you pay on the loan can save you thousands. For many of you, now may be the perfect time to refinance your mortgage and put thousands of dollars back into your pocket.
Discount Rate Mortgage Pros And Cons Posted By : Chris Clare There are a lot of mortgages on the market and it can be an extremely difficult choice deciding which one is exactly right for you and your financial circumstances. Every single lender has many many different types of mortgage deals designed to suit every type of client so regardless of what type of mortgage client you are most lenders have a product to suit.
© Source: www.my-mortgage.org
Tips for Saving Thousands on Your Home Loan Posted By : Mary Wise Taking a mortgage loan is probably the most significant financial decision in a family life as it will affect the family finance for many years to come.
Kinds of Money lenders There are different types of money lenders and this article deals with the different types of money lenders present in the market scenario. Some of the different types of money lenders.
Refinance Now To Save Thousands on Your Mortgage Posted By : ratetake Death and taxes - two things you know are for certain in life. However, there is a third that is almost nearly as certain as those two - fluctuating interest rates. With a home mortgage being one of the largest purchases you will ever make, even the slightest decrease in the rate that you pay on the loan can save you thousands. For many of you, now may be the perfect time to refinance your mortgage and put thousands of dollars back into your pocket.
Discount Rate Mortgage Pros And Cons Posted By : Chris Clare There are a lot of mortgages on the market and it can be an extremely difficult choice deciding which one is exactly right for you and your financial circumstances. Every single lender has many many different types of mortgage deals designed to suit every type of client so regardless of what type of mortgage client you are most lenders have a product to suit.
© Source: www.my-mortgage.org
What To Do Before You Compare Mortgage Rates
With the current fear of the house price crash, it is no wonder that people, couples, families and professionals are desperately seeking to sell their property in a bid to recoup some money. This may seem like a gloomy time for many struggling and hard working individuals, especially for those who have purchased their own house in hopes of making money from their investments. With the economy moving in the direction that it is, what could potential mortgage seekers do to qualify for a mortgage?
Before one even thinks about beginning to research and compare mortgage rates, they will need to watch the property market closely. See where it is going currently, what are the predictions and how likely are they going to receive the desired mortgage amount? Many people have made the mistake in applying mortgages six to ten times their current salary income. This has caused many homes to be repossessed, as they are just simply unable to keep up with the mortgage repayments.
Many families have claimed that they are just managing to ‘get by’ on their income, however, many have claimed that money is very tight - the number of families making the same claims have risen o an alarming rate further revealing how expensive mortgage rates can be. The only way to avoid such a dilemma is to initiate a plan over your budgets, decide how much you are able to afford from a mortgage and always do this after calculating your current monthly expenditure.
Always make a list of all of your outgoings, how much you receive on a monthly basis and what you are left after all of your outgoings. When you start to compare mortgage rates, you will notice that some banks have increased the interest rates in light of the current economic instability. This can be a discouraging outlook especially for people who are unable to save enough for a deposit. Many who have taken a full one hundred percent mortgage have faced paying more than what they had bargained for in terms of paying back the interest rate.
However, there is light at the end of the tunnel. First-time buyers will be rest assured that some lenders have dropped their mortgage interest rates enough to allow those unable to afford the high interests to apply. The mistake that some first-time buyers are making is waiting for the rates to go down further. This does not guarantee the rates to go down, as the way things are moving it will creep up again. Therefore the best time to apply for a low mortgage rate is now - when the mortgage rates have lowered and not later!
Always be doubly sure that you can afford the mortgage, the best possible way to do this is to go in with someone else, so you can share the mortgage payments evenly and afford the rest of the top-ups needed for maintaining and financing your home. If you going it alone, you could try to rent out the spare rooms for that extra bit of help. You should always make sure that you have enough left over for yourself; there is nothing worse than not being able to afford food let alone a social life. This will need to be completed as a checklist prior to signing on to a new mortgage. This way you know what are getting yourself into and making sure, you stay in control of your finances.
© SOURCE: Populate.net
Before one even thinks about beginning to research and compare mortgage rates, they will need to watch the property market closely. See where it is going currently, what are the predictions and how likely are they going to receive the desired mortgage amount? Many people have made the mistake in applying mortgages six to ten times their current salary income. This has caused many homes to be repossessed, as they are just simply unable to keep up with the mortgage repayments.
Many families have claimed that they are just managing to ‘get by’ on their income, however, many have claimed that money is very tight - the number of families making the same claims have risen o an alarming rate further revealing how expensive mortgage rates can be. The only way to avoid such a dilemma is to initiate a plan over your budgets, decide how much you are able to afford from a mortgage and always do this after calculating your current monthly expenditure.
Always make a list of all of your outgoings, how much you receive on a monthly basis and what you are left after all of your outgoings. When you start to compare mortgage rates, you will notice that some banks have increased the interest rates in light of the current economic instability. This can be a discouraging outlook especially for people who are unable to save enough for a deposit. Many who have taken a full one hundred percent mortgage have faced paying more than what they had bargained for in terms of paying back the interest rate.
However, there is light at the end of the tunnel. First-time buyers will be rest assured that some lenders have dropped their mortgage interest rates enough to allow those unable to afford the high interests to apply. The mistake that some first-time buyers are making is waiting for the rates to go down further. This does not guarantee the rates to go down, as the way things are moving it will creep up again. Therefore the best time to apply for a low mortgage rate is now - when the mortgage rates have lowered and not later!
Always be doubly sure that you can afford the mortgage, the best possible way to do this is to go in with someone else, so you can share the mortgage payments evenly and afford the rest of the top-ups needed for maintaining and financing your home. If you going it alone, you could try to rent out the spare rooms for that extra bit of help. You should always make sure that you have enough left over for yourself; there is nothing worse than not being able to afford food let alone a social life. This will need to be completed as a checklist prior to signing on to a new mortgage. This way you know what are getting yourself into and making sure, you stay in control of your finances.
© SOURCE: Populate.net
Why Mortgage Interest Rates Are Rising Despite Government Actions!
Mike Larson writes: The government is throwing everything … and I do mean EVERYTHING … at the credit and mortgage markets.
It has taken over Fannie Mae and Freddie Mac.
It has agreed to buy Mortgage Backed Securities (MBS) in the open market.
It has pledged to take hundreds of billions of dollars in crummy assets from the nation's major financial firms.
And it has promised to infuse the banking system with as much as $250 billion in capital.
The primary goal of all these bailout efforts: To lower the financing costs associated with home purchases.
But the result of all these efforts is that mortgage rates are going up.
Yes, I said UP. Let me explain …
Bond Investors Are Asking:“What Price, Bailouts?”
The 30-year fixed mortgage is America's bread and butter loan. Long before the industry thought up new and creative ways for borrowers to bury themselves in horrid loans, it's what home buyers typically used to purchase a home. And it's what I believe both borrowers and lenders are returning to because of the safety and stability that a long-term, fixed rate mortgage provides.
But rates on 30-year fixed loans aren't going down. They're going up.
The average 30-year rate jumped to 6.47% in the week of October 10, according to the Mortgage Bankers Association. That was up from 5.98% a week earlier and just shy of the August high (6.58%), itself the highest in more than a year.
How can rates be going up when the economy is tanking and the government is throwing everything it can at the banking sector and credit markets?
Washington's best efforts have not been enough to prop up the housing market or keep mortgage rates low. Because bond investors are dumping the heck out of bonds — and when bond PRICES fall, bond YIELDS (interest rates) rise.
Why are investors selling bonds? Well, we just learned that the budget deficit soared to $454.8 billion in fiscal 2008, which ended September 30. That was more than double the $161.5 billion deficit in 2007 and the highest in the history of the country .
Thanks to all the fresh bailout programs, the deficit will likely surge by a few hundred billion MORE dollars in fiscal 2009 — and it could easily top $1 TRILLION.
But no one in Washington has shown any willingness to raise taxes to pay for all of these bailout programs. And it's not like there's a pile of money just sitting around in the U.S. Treasury to fund them, either.
We're a net debtor nation, and we're going to have to borrow hundreds of billions of dollars to make good on all of our promises.
That means a flood of Treasury debt the likes of which we've never seen is going to wash over the market in the coming year or two.
Bond traders know that will overwhelm bond demand. So they're not sticking around. They're selling the heck out of bonds NOW , driving prices down and rates up.
Long bond futures plunged from an intraday high of 124 23/32 in mid-September to around 114 now — a decline of more than ten points in price.
Since bond yields move in the opposite direction of prices, they're going up. The benchmark 10-year Treasury Note now yields about 4%, up from the 3.4% area in September.
Look, politicians and policymakers would like you to think they can just wave a magic wand, drive mortgage rates down, save the banking sector, and return us to the happy-go-lucky, reckless lending days of 2003-2007.
But they can't. The bond market is pushing back and saying loud and clear: “There is no such thing as a free lunch.”
My bottom line message hasn't changed, either. I continue to expect any recovery in the housing and credit markets to take a long time. And I continue to believe that while all of these government bailout programs can treat some of the downturn's symptoms, they can't cure the underlying disease. The only real cures are time and price changes.
Until next time,
Mike
This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.
It has taken over Fannie Mae and Freddie Mac.
It has agreed to buy Mortgage Backed Securities (MBS) in the open market.
It has pledged to take hundreds of billions of dollars in crummy assets from the nation's major financial firms.
And it has promised to infuse the banking system with as much as $250 billion in capital.
The primary goal of all these bailout efforts: To lower the financing costs associated with home purchases.
But the result of all these efforts is that mortgage rates are going up.
Yes, I said UP. Let me explain …
Bond Investors Are Asking:“What Price, Bailouts?”
The 30-year fixed mortgage is America's bread and butter loan. Long before the industry thought up new and creative ways for borrowers to bury themselves in horrid loans, it's what home buyers typically used to purchase a home. And it's what I believe both borrowers and lenders are returning to because of the safety and stability that a long-term, fixed rate mortgage provides.
But rates on 30-year fixed loans aren't going down. They're going up.
The average 30-year rate jumped to 6.47% in the week of October 10, according to the Mortgage Bankers Association. That was up from 5.98% a week earlier and just shy of the August high (6.58%), itself the highest in more than a year.
How can rates be going up when the economy is tanking and the government is throwing everything it can at the banking sector and credit markets?
Washington's best efforts have not been enough to prop up the housing market or keep mortgage rates low. Because bond investors are dumping the heck out of bonds — and when bond PRICES fall, bond YIELDS (interest rates) rise.
Why are investors selling bonds? Well, we just learned that the budget deficit soared to $454.8 billion in fiscal 2008, which ended September 30. That was more than double the $161.5 billion deficit in 2007 and the highest in the history of the country .
Thanks to all the fresh bailout programs, the deficit will likely surge by a few hundred billion MORE dollars in fiscal 2009 — and it could easily top $1 TRILLION.
But no one in Washington has shown any willingness to raise taxes to pay for all of these bailout programs. And it's not like there's a pile of money just sitting around in the U.S. Treasury to fund them, either.
We're a net debtor nation, and we're going to have to borrow hundreds of billions of dollars to make good on all of our promises.
That means a flood of Treasury debt the likes of which we've never seen is going to wash over the market in the coming year or two.
Bond traders know that will overwhelm bond demand. So they're not sticking around. They're selling the heck out of bonds NOW , driving prices down and rates up.
Long bond futures plunged from an intraday high of 124 23/32 in mid-September to around 114 now — a decline of more than ten points in price.
Since bond yields move in the opposite direction of prices, they're going up. The benchmark 10-year Treasury Note now yields about 4%, up from the 3.4% area in September.
Look, politicians and policymakers would like you to think they can just wave a magic wand, drive mortgage rates down, save the banking sector, and return us to the happy-go-lucky, reckless lending days of 2003-2007.
But they can't. The bond market is pushing back and saying loud and clear: “There is no such thing as a free lunch.”
My bottom line message hasn't changed, either. I continue to expect any recovery in the housing and credit markets to take a long time. And I continue to believe that while all of these government bailout programs can treat some of the downturn's symptoms, they can't cure the underlying disease. The only real cures are time and price changes.
Until next time,
Mike
This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.
Three Big Tips on Marketing for Mortgage Brokers
Mortgage marketing as a first job is easier than you think especially when you consider the tips below.
Make Liberal Use of Headlines Don’t make a presentation, brochure, or even a simple calling card without making use of headlines. Unless your name is Donald Trump, having your full name spelled out in calligraphy won’t warrant a second glance. An effective headline, however, can do that and more.
When creating a headline, there are two types of ideal reaction to aim for: shock and emotional connection. People make second glances and pay more attention to anything or, in this case, any statement that proposes something they can’t believe.
Example: “Free yourself from financial worries with my type of mortgage.” “Do you want to know how I can give you $5,000?” As for an emotional connection, try thinking of a statement that mirrors a person’s dreams and goals. “Learn how to have more time with your loved ones!” “Mortgages are your passport to genuine happiness!”
Either way, headlines must be brief but concise. It hooks the readers by letting them have a taste of what you have in store and more importantly, what reading the rest can do for them. Headlines make use of powerful words that can immediately create vivid images for the readers. And lastly, headlines are best when personalized. You want readers to feel that you are speaking directly to them and only to them.
Let Them Know How Much You Care Another important rule to remember in marketing for mortgage brokers is that you’re not just supposed to sell the idea of mortgages but you should work on selling your services as well. Don’t be satisfied when you’ve convinced your client about the merits of taking out a mortgage.
You could be setting yourself up for a trap and where you doing all the hard work and then letting a rival sweep in and take your customer away.
Let them know that you’re willing to go the extra mile. Tell prospective clients about how you’ve served your previous clients.
Give them a reason why they should stay loyal to you and avail of your services than anyone else’s. Sell your services effectively and later on, they’ll be the ones doing it for you through word of mouth marketing.
Be Courteous Chivalry and courtesy may be archaic values to many but not to you and that’s exactly how it should be. Mortgage brokers have long suffered from unfair portrayals and it’s time to let the public know that not all mortgage providers are greedy and rude.
Send thank-you cards whenever you can. It’s a good thing for people to remember you by and when the time comes that they need the services of a mortgage broker, your name is sure to be in the uppermost of their minds.
Distinguish yourself from other mortgage brokers by being courteous. Continue building and strengthening good relations with anyone you encounter. You never know who your next client might be. And of course, never cross the line separating assertiveness from aggressiveness. Know when customers say “no” and mean it. Respect a customer’s right to refuse.
Now that you know all the essential marketing tips for mortgage brokers, you’re more than ready to break out of your shell and get in touch with prospective clients. Good luck!
About the Author: Scott Tucker tells you more on his free audio CD, free e-book, free faxed report, & free telephone seminar, all available for the asking, at www.MortgageMarketingGenius.com
Make Liberal Use of Headlines Don’t make a presentation, brochure, or even a simple calling card without making use of headlines. Unless your name is Donald Trump, having your full name spelled out in calligraphy won’t warrant a second glance. An effective headline, however, can do that and more.
When creating a headline, there are two types of ideal reaction to aim for: shock and emotional connection. People make second glances and pay more attention to anything or, in this case, any statement that proposes something they can’t believe.
Example: “Free yourself from financial worries with my type of mortgage.” “Do you want to know how I can give you $5,000?” As for an emotional connection, try thinking of a statement that mirrors a person’s dreams and goals. “Learn how to have more time with your loved ones!” “Mortgages are your passport to genuine happiness!”
Either way, headlines must be brief but concise. It hooks the readers by letting them have a taste of what you have in store and more importantly, what reading the rest can do for them. Headlines make use of powerful words that can immediately create vivid images for the readers. And lastly, headlines are best when personalized. You want readers to feel that you are speaking directly to them and only to them.
Let Them Know How Much You Care Another important rule to remember in marketing for mortgage brokers is that you’re not just supposed to sell the idea of mortgages but you should work on selling your services as well. Don’t be satisfied when you’ve convinced your client about the merits of taking out a mortgage.
You could be setting yourself up for a trap and where you doing all the hard work and then letting a rival sweep in and take your customer away.
Let them know that you’re willing to go the extra mile. Tell prospective clients about how you’ve served your previous clients.
Give them a reason why they should stay loyal to you and avail of your services than anyone else’s. Sell your services effectively and later on, they’ll be the ones doing it for you through word of mouth marketing.
Be Courteous Chivalry and courtesy may be archaic values to many but not to you and that’s exactly how it should be. Mortgage brokers have long suffered from unfair portrayals and it’s time to let the public know that not all mortgage providers are greedy and rude.
Send thank-you cards whenever you can. It’s a good thing for people to remember you by and when the time comes that they need the services of a mortgage broker, your name is sure to be in the uppermost of their minds.
Distinguish yourself from other mortgage brokers by being courteous. Continue building and strengthening good relations with anyone you encounter. You never know who your next client might be. And of course, never cross the line separating assertiveness from aggressiveness. Know when customers say “no” and mean it. Respect a customer’s right to refuse.
Now that you know all the essential marketing tips for mortgage brokers, you’re more than ready to break out of your shell and get in touch with prospective clients. Good luck!
About the Author: Scott Tucker tells you more on his free audio CD, free e-book, free faxed report, & free telephone seminar, all available for the asking, at www.MortgageMarketingGenius.com
Option One Mortgage Providing You with the Best
Taking out a mortgage is a weighty decision, it can have serious implications on your family when things go wrong. A high mortgage can put a strain on daily expenses or put you into debt. You need to choose a company that cares about you and understands your needs. At Option One Mortgage the focus is on the customer. The needs of the customer come first when we provide you with out services. This focus is reflected in every step of the process is providing you with a mortgage loan.
Building Community At Option One Mortgage there is an understanding that community is important. Our first objective is t have a highly trained staff who can better serve our customers. It is this attention to excellence that has led Option One Mortgage to be the head of the industry. Well trained staff means that you can be assured of the best decisions being made for you. Option One Mortgage also sees the importance of community building through investment in the community. Volunteering and donating to worthy causes is at the heart of the Option One Mortgage ethic. Diversity and change are both valued at Option One Mortgage. Treating others no matter how different they may be from us with respect is the only viable way to do business.
Keeping Your Home Foreclosure is everyone’s nightmare and something that you would never want to have happen to you. At Option One we understand this and work closely with you to make sure that this is the last possible thing to happen to you. Option One is aware that bad things happen when we least expect them. This is why there are several alternative routes that you can take if you find yourself falling behind payments to avoid foreclosure. Contact our staff to talk about what you can do to avoid foreclosure and delinquency.
Your Loan Option One Mortgage offers a number of services that go towards servicing your loan for free. Among these services are copies of loan documents, copies of payment histories, escrow accounts for taxes and insurance and verifications of mortgages. There are also a number of payment methods to ease your loan payment. You can choose to have a recurring electronic debit, online payment through our website, payment by phone and of course by mail. We have tried to provide as many options as possible to fit with your lifestyle and convenience.
© Source: money.savvy-cafe.com
Building Community At Option One Mortgage there is an understanding that community is important. Our first objective is t have a highly trained staff who can better serve our customers. It is this attention to excellence that has led Option One Mortgage to be the head of the industry. Well trained staff means that you can be assured of the best decisions being made for you. Option One Mortgage also sees the importance of community building through investment in the community. Volunteering and donating to worthy causes is at the heart of the Option One Mortgage ethic. Diversity and change are both valued at Option One Mortgage. Treating others no matter how different they may be from us with respect is the only viable way to do business.
Keeping Your Home Foreclosure is everyone’s nightmare and something that you would never want to have happen to you. At Option One we understand this and work closely with you to make sure that this is the last possible thing to happen to you. Option One is aware that bad things happen when we least expect them. This is why there are several alternative routes that you can take if you find yourself falling behind payments to avoid foreclosure. Contact our staff to talk about what you can do to avoid foreclosure and delinquency.
Your Loan Option One Mortgage offers a number of services that go towards servicing your loan for free. Among these services are copies of loan documents, copies of payment histories, escrow accounts for taxes and insurance and verifications of mortgages. There are also a number of payment methods to ease your loan payment. You can choose to have a recurring electronic debit, online payment through our website, payment by phone and of course by mail. We have tried to provide as many options as possible to fit with your lifestyle and convenience.
© Source: money.savvy-cafe.com
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