2008 Bad Credit Mortgage Boom
Filed under: Home Loans, Home Mortgages, Mortgage Refinance
In the past years, the private sector has dramatically expanded its role in the mortgage bond market, which had previously been dominated by government-sponsored agencies. Especially subprime mortgages that became increasingly popular in recent years are considered higher-risk loans because they typically draw borrowers in with an initial low “teaser” interest rate, which can spike upward after the first few years. Read more
Pay Off Your Mortgage
Filed under: Home Equity Loans, Home Loans, Home Mortgages, Mortgage Refinance
There is an idea floating around out there in the ether. Some folks are actually talking about paying off their mortgages and getting out of debt for good. Poppycock! That’s madness. What is so great about financial freedom anyway?
Face it. Your mortgage, for which you probably broke traffic laws to get to the closing, has become a ball and chain. The dollar amount of your home loan may have actually increased over the years, while the appraisal value may have gone down. This begins to look rather hopeless after a while. Read more
Reverse Mortgage Types
The reverse mortgage helps the seniors over sixty two years old to use the equity of the home to supplement an existing income. Reverse mortgage is loan advance to the home without repayment unless the owner moves, dies, or sells the home.
In the United Kingdom, reverse mortgage is more common as lifetime mortgage. Hence, the owner never needs to repay as long as the owner lives in the home. The reverse mortgage lenders distribute the cash as lump sum, regular payment, credit line, or combinations.
In the United States, the basic types of reverse mortgage are single purpose reverse mortgage, federally insured reverse mortgage, and proprietary reverse mortgage. There may be more types in different countries, but the main idea is very similar.
Single Purpose Reverse Mortgage
The government agencies and non profit organizations offer this type of reverse mortgage. It is generally low costs. Although the government agencies may be local or state, the mortgage is available in a few locations only. The purpose of reverse mortgage is specific such as home repair, home improvements, and property taxes. And, the owner earns low or moderate income.
Federally Insured Reverse Mortgage
The U.S. Department of Housing and Urban Development (HUD) backs this type of reverse mortgage. This type is more commonly known as Home Equity Conversion Mortgages (HECM). The upfront costs are high especially if the owner stays in short period of time. So, this reverse mortgage is costlier than Single Purpose Reverse Mortgage.
It is the opposite of Single Purpose Reverse Mortgage in which the reverse mortgage loan can be used in any purpose. And, the mortgage are widely available anywhere. There are also no income or medical requirements.
Proprietary Reverse Mortgage
The private companies backed or owned this type of reverse mortgage. It is generally the most expensive type of reverse mortgage. However, the owner may get more than other types of reverse mortgage. Generally, it works the same way as the Federally Insured Reverse Mortgage.
Choosing Mortgage Lenders
Filed under: Home Loans, Home Mortgages, Mortgage Refinance
There are many types of mortgage lenders and each one focuses on a special slice of the market.
Seller-financed
The seller of the property provides financing to a buyer. This type of arrangement is highly risky. Most sellers profit from borrowers twice: first, from the outright sale of the property, and second, from the interest of the borrowed money.
Savings and Loans
These mortgage lenders use the savings of private investors to provide mortgages. They are one of the largest mortgage providers in the country. Read more
Get The Best Mortgage Advice
When you want a mortgage, you take advice, arm yourself with a lot of information and are in a position to choose a lender and the mortgage product which best suits you.
Or are you? Where do you start? Read more