Seniors Reverse Mortgage - Benefits and Drawbacks

Senior reverse mortgages are different from traditional home loans in several ways. Before you decide to get a reverse mortgage, it's a good idea to learn as much as you can about them; learn such things as how they work, their benefits and even their drawbacks.

With a reverse mortgage, you never have to make monthly repayments for as long as you live in your home. As a matter of fact, the opposite occurs: the lender pays you money. You can get money from a bank when you have a reverse mortgage in one of three different ways: a lump sum, a line of credit or monthly payments.

Because you are getting money from the bank, you increase your home's debt as time goes on. At the same time, the equity in the home decreases.

Whenever the time comes to pay back your reverse mortgage - you move out of the home or you die -, the debt may be large and you may have little equity left in the house. However, no matter how much money you owe, it can never be more than the value of the home.

Since you don't need to make any monthly repayments, you don't need any type of income to qualify. You could have no income and still qualify for a reverse mortgage. Also, your credit history is of no concern.

The only requirements are that you are at least 62 years old, and that there is enough equity in the home.

The amount of money you can borrow depends on three factors:

- Your age

- The current market interest rate

- Your home estimated value or the FHA's mortgage limit for the area where you live

As a general rule, the older you are, the more expensive your home is and the lower the interest rates are, the more money you can borrow with a seniors reverse mortgage.

Also, remember that since you will still be the owner of the home, you are still required to pay real estate taxes, insurance, and maintenance costs.

Senior Reverse Mortgage Benefits

A reverse mortgage has many benefits associated with it. These are some of its most important ones:

- You don't need to leave your home. You can stay in your home for as long as you want.

- You won't need any income to qualify. The lender is the making the payments.

- You won't need to make any payments on a reverse home loan.

- You can't loose your house because you can't make mortgage payments

- You can never be evicted your home for as long as you live in it. However, you still need to make real estate, insurance and maintenance payments.

- You can use the money from the reverse mortgage for any thing you want.

- The funds from a reverse mortgage are usually tax deductible

- Most senior reverse mortgages have no income limitations

- Your Social Security and Medicare payments are for most people not affected

Reverse Mortgage Cons

As with any type of mortgage, a senior reverse mortgage has some drawbacks. Many of them are only potential and depend on your individual situation. Nevertheless, it's a good for you to know about these drawbacks before choosing to apply for a reverse mortgage.

These are some of the facts you need to consider before choosing a reverse mortgage:

- Most all reverse mortgages have variable interest rates. Your rates will vary as the market changes.

- Since reverse mortgages work by decreasing your home equity, you can use up most of your home equity, leaving little money left from the sale of the house for you and your heirs. However, a "non-recourse" clause found in most reverse home loans prevents either you or your heirs from owing more money than your home is worth.

- Since you keep ownership of the home, you are still responsible for real estate taxes, insurance and maintenance costs.

- Most lenders charge origination fees and other closing costs for a reverse mortgage. Lenders also may charge servicing fees during the duration of the home mortgage. These fees are already included in the mortgage.

- The interest paid on a reverse mortgage is not deductible in your income tax returns until the home mortgage is paid off (in part or whole.)

- There is usually a cheaper solution to your problems (credit line, refinancing your existing mortgage, etc.)

To make sure you get a good deal, get a reverse mortgage using a trusted lender and a mortgage broker specializing in reverse mortgages. A good reverse mortgage broker will educate you throughout the process.

Before you get a Reverse Mortgage [http://www.seniorsreversemortgage.us], make sure you learn all about them. You can read many different educational articles at Senior Reverse Mortgage [http://www.seniorsreversemortgage.us].

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Mortgage Advice For Borrowers Unsure About Recent Market Changes

Mortgage Takeover of Fannie/Freddie: Good For Borrowers?

Government officials dropped a bombshell last week when they announced the seizure of mortgage giants Fannie Mae and Freddie Mac. Wall Street rallied, interest rates dropped and the politicians and pundits are claiming this will mark the end of the suffering brought on by the mortgage mess.

This is good news, right?

In the short term yes but everyone should stop and consider what the long term implications are of the government running the mortgage industry.

What's Really Going On?

In a nutshell - Uncle Sam just co-signed for all of our loans.

Officials announced the move would involve placing these mortgage operations into a "government conservatorship" in hopes of stabilizing the housing / credit markets. In a conservatorship, like bankruptcy, common stockholders are expected to lose their investments.

Essentially this is the equivalent of a giant "bail out." Investors have been scared to death of a worsening "meltdown" and this move basically puts the governments money (your and my money) behind the mortgage industry to make sure it doesn't fall down.

With the housing and credit markets continuing to slump and with fears of the "meltdown" getting worse this move was the governments best bet to shore up markets.

Impact For Borrowers:

Good News:

1. Lower interest rates in the short haul. Who doesn't like lower rates?
2. Investors get a shot of confidence. Now that Uncle Sam is the co-signer investors feel more confident that the mortgage backed debts will remain solvent.
3. The government owns your loan. How bad can that be?

Bad News:

1. The government owns our loan - uh, oh. Ever tried negotiating with the IRS? While the government has had FHA, VA and other programs it does not have experience managing the type of operations that Fannie and Freddie run.
2. Future uncertainty about management / guidelines. Our inside sources are telling us that the future of guidelines......
3. Long term implications.....

What Should Borrowers Do?

Borrowers should be looking to capitalize on the temporary drop in rates and stabilization of credit markets. In the week since the announcements rates have steadily declines as investors are feeling the relief of the government bailout.

Our suggestions:

1. Make sure your mortgage in process can drop down to the new rates
2. Make sure your loan officer is fully educated about the changes and how it might impact your loan.
3. Check your Good Faith Estimate (GFE) and Truth in Lending (TIL) to make sure your mortgage company is not "up selling" your loan to take advantage of the lower rates to make a higher commission.

What Does the Future Hold?

We believe that the housing market recovery will probably determine when the credit markets regain their health. Why? Because decreasing home values resulted in the inability of homeowners to sell or refinance their house to get out of financial trouble - which is how this mortgage issue all got started.

Here are some recent facts:

Maybe the housing marketing isn't so bad in many areas. The Office of Federal Housing Enterprise Oversight's (OFHEO) House Price Index (HPI) reported in May that 35 states saw a positive home value price change in the first quarter of 2008. In addition, 164 MSAs showed positive first quarter appreciation when compared to the same quarter of 2007.

California, Florida, Nevada, and Arizona are still the largest statistical problem areas for home prices. Industry experts acknowledge that these markets were the most speculative during the 2000 - 2005 mortgage mayhem. And because the values in these areas are very high relative to the rest of the country it has a larger impact on the overall numbers.

Just because four states are still falling, and 11 other states continue to try and stabilize doesn't mean the entire market will continue to take the plunge. According to PMI Mortgage Insurance Company's "Economic & Real Estate Trends" recent report, almost 68% of the nation's 322 remaining MSAs experienced positive appreciation everywhere other than California, Florida, Nevada, and Arizona.

So while no one has a crystal ball it appears things are not quite as bad as the media would have us believe. If the credit markets can begin to stabilize and home prices hold steady we may yet see the end of this "mortgage crisis."

Andre Savoie. A Professional Internet Marketing Firm and Writer. A WSI SEO Expert Providing information with regards to Marketing loans. Trusted Mortgage Advice a perfect site that give Mortgage Advice for your Peace of Mind

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Mortgage Loan Modification Can Help You

A mortgage loan modification is simply an arrangement through which you get to 'change' you mortgage loan repayment terms. The terms in question here include the size of repayments, the regularity of the repayments and hence the total mortgage loan repayment period. It is usually done in the face of new emerging circumstances that make is impossible for you to keep up with the previous terms that you had initially entered into with the mortgage lender.

The mortgage loan medication is not very much unlike a mortgage refinancing arrangement. The difference between the two, however, lies in the fact that mortgage refinancing involves taking up a new loan, whereas in a mortgage loan modification, you keep the original loan, and only modify your repayments for it.

There are a number of ways through which a mortgage loan modification can help you. For one, through the mortgage loan modification, you have a way of protecting yourself from an embarrassing foreclosure: which would inevitably be the end result of your not keeping up with mortgage payments, if you decided to do nothing about it. Therefore if the financial problem you are facing is temporary, and you are already doing something about it, you can use the mortgage loan modification strategy (like where your month repayments are reduced a bit, with the total mortgage loan repayment period extended) as a way of shoring yourself through the transition period. Indeed, there are even some mortgage lenders who are willing to let you stop paying them for a while (typically a predefined period of time), and then start repaying them at the end of that period. The period in question could be the grace period between your starting a business and your starting to earn profits out of it. The period in question could also be the period between your losing your job and getting another. Upon the end of the period in question, and hopefully the improvement of your financial situation, you can start repaying your mortgage in larger installments or have the mortgage repayment period extended, so as to make up for the 'lost time' in either case.

Of course, the mortgage-loan modification also offers you a way of saving your credit score from ruin. In the event of your getting into situations where you cannot keep up with your mortgage obligations, and your deciding to do absolutely nothing about it, you could end up with a very huge blot on your credit record. This could translate to a very difficult financial future, where you can't find any credit facilities. Thankfully, this is something you can save yourself, through the use of mortgage loan modification.

It is worth noting, of course, that not every mortgage provider will find the idea of mortgage modification agreeable. Yet it doesn't help for you to jump into conclusions before even trying out something. There is no harm, in the event of your finding yourself unable to keep up with your mortgage obligations, to ask your mortgage provider whether a mortgage modification is something they would consider. Chances are that as long as it not totally against their policy, and you can show them how it is in their best interests to modify your mortgage, they will buy your request.

Having trouble with your mortgage? Get mortgage loan modification help from mortgage loan modification experts. Visit our site now!

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New Mortgage Loan Limits Mean New Sales Opportunities For Loan Officers And Mortgage Brokers

With every year, come new opportunities. And astute loan officers are quick to capitalize on what the new year brings, raising their commission levels and catapulting to top producer status in no time.

I ask you one simple question, "Are you doing everything you can to maximize your income?"

Anyone who has been in the mortgage industry for at least a year, knows that as home prices increase, so do the conforming loan limits from both Fannie Mae and Freddie Mac. January is a great time to go through your existing customer base, and drill for hidden opportunities. It's "found" money. And it's waiting for you.

Here's a quick and easy way you can start your new year off with a bang.

Go through your entire past customer base, and pull-out all the "JUMBO" loans you closed last year and before. As you know, the interest rates on these loans are typically half a percentage point or more above standard conforming loans.

With the yearly increase in loan limits, this is a great chance to refinance an existing customer from a JUMBO loan, into a regular conforming loan and cut their interest rate! Even a small percentage decrease can save a customer hundreds of dollar in their monthly cash flow as well as thousands of dollars in interest over the life of their loan. It's simple math and the savings are black and white.

Refinancing JUMBO loans into conforming loans is easy money and your customers will love you for it! How many loan officers do you know that are proactive and actually look for ways to save their customers money? Not many, I'm sure!

And the ones who do, do this, certainly aren't going to share their secrets with you. But, I will. This will be the easiest sales call you've ever made! Not to mention the referrals you'll get in return. It's a win-win situation. Don't miss the boat.

Your past customers are your greatest asset. They know you, they have a relationship with you, and they trust you. Waste no more time!!! I beg you! Go through your customer database now and mine for the gold that awaits you. What are you waiting for?

Using the same old thinking and doing the same old things the same old way will get you nowhere. Think different. Be proactive. Add value to your relationship with your customers whenever you can. Uncover the opportunities that lie hidden all around you. Do this and you'll quickly vault to top producer status in no time. Not to mention your income and lifestyle will increase as a result.

In closing, always remember that each new year brings higher loan limits--and with it-a chance to pull in some quick, easy refinance loans. Whether or not you take full advantage and raise your commission level, is entirely up to.

The gold is there waiting for you, ready to be claimed. But, will you reach out and take it?

Rob Lawrence is ranked one of top national trainers in the mortgage industry. He is the currently the CEO of Battlecall.com, coaching, tools and resources to turn mortgage professionals into mortgage warriors. Visit http://www.battlecall.com for his free "Sink Or Swim" weekly newsletter, mortgage training, marketing advice and more! Jumpstart your career in the mortgage business, starting today.

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Chapter 13 Refinance Mortgage Loan

The Chapter 13 bankruptcy loan is a changing but still available product offering from many wholesale lenders. Since August 2007 the secondary mortgage markets have been extremely volitile pushing many lenders to cut cut off funding for debtors with spotty payment history. Two or more 30 day lates on a mortgage or trustee report since your Chapter 13 file date has procluded many debtors from seeking relief from many so called "subprime" lenders.These subprime lenders that are still in business as of this article are funding Chapter 13 loans with the same/similar guidelines as FHA, but charging much higher interest rates than the FHA product.

The only good reason at this point to use a "subprime" lender to buyout a chapter 13 is if your loan amount is non-conforming to FHA loan limits* Please note that the FHA loan limits are to be raised pending the implementation of the FHA secure program. Check the HUD.gov site for loan limits in your county/State*. Many mortgage brokers are trying to steer customers into harms way because of their own ignorance or lack of a license to do FHA loans. Always ask your broker if they are an FHA approved lender/broker. FHA was designed to help the subprime borrower. The only limitation on FHA is you cant lie about your income, and you cant borrow over the median sales price of house in your county. LTV restriction almost save the borrowers from themselves naver on a BK buyout will the LTV be over 85% which preserves equity.

The FHA loan has taken the place of the predatory practices that were common from many subprime lenders. Many brokers have misconception about bankruptcy refinancing and FHA loans I.E. The debtor must have been in an FHA mortgage prior to bankruptcy, to refinance with FHA out of the bankruptcy. This is completely untrue! The debtor can even leave a bankruptcy open with FHA with the appropriate motion from the court! Many people dont realize the power of FHA lending. Work with an FHA lender and an obvious expert.

Please visit http://www.bankruptcyhomeloan.org for more info! See why Mr. Peck is funding loans while other loan officers are funding career changes. Work with a chapter 13 mortgage specialist and get it done right the first time!

Shawn M Peck

Branch Manager

Nationwide Equities Corporation
811 Church Road Suite 160
Cherry Hill NJ 08002

856-773-0226 Ph
201-299-2556 F
856-796-0920 C
http://www.bankruptcyhomeloan.org

Equal Housing Lender. Nationwide Equities Corporation. Nationwide Equities Corporation is a Licensed Mortgage Banker in CT, CO, DE, FL, IO, MA, MD, NJ, NY, PA, & SC. Registered Mortgage Broker in CT, DE, FL, IA, MA, MD, MS, NJ, NY, & PA.Some products may not be available in all states.

Shawn M Peck is branch manager for Nationwide Equities Corporation in Cherry Hill. As a loan officer Mr. Peck writes business exclusive to bankruptcy and foreclosure.

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Southern California Mortgage Lenders

In the United States, most people are dependant on a mortgage to buy a house. This is a customer-friendly process, wherein a financial institution offers a home loan to finance a real estate purchase. However, a customer has to secure this loan against the proposed house. Southern California mortgage lenders are banking establishments that assist customers in buying and refinancing their homes.

Real estate is a profitable and competitive business. For this reason, Southern California mortgage lenders are eager to discuss mortgage rates with potential customers. This competitiveness amongst lenders has paved the way for affordable and economic interest rates. Most Southern California mortgage lenders are keen to negotiate on rates in order to attract new customers.

A large number of Southern California mortgage lenders offer easy-to-access and quick-response online assistance. These lenders’ sites provide affordability and mortgage calculators. Potential loan seekers can key in a number of variables and compare available loan rates. A number of independent mortgage sites are also available. Information submitted in these allows various Southern California mortgage lenders to compete for and attract clients.

Most Southern California mortgage lenders are important financial institutions that may not have enough time to concentrate on mortgage customers. To increase their exposure and profitability these lenders work through a mortgage broker. This is an effective practice for all who are involved. In these practices, lenders offer brokers wholesale and economic rates. This in turn increases the number of customers, since these mortgage rates are almost always more affordable.

Southern California mortgage lenders offer different types of loans. These include first-time home loans, refinancing on existing loans, and home equity loans. A number of these lenders also propose different payment options. These include bi-weekly payments instead of monthly payments; this helps a borrower save a considerable amount of interest during the mortgage tenure. Most of these lenders offer personalized customer care services. This helps lenders understand the individual needs of customers, and cater to them accordingly.

California Mortgage Lenders provides detailed information on California Mortgage Lenders, Northern California Mortgage Lenders, California Mobile Home Mortgage Lenders, Southern California Mortgage Lenders and more. California Mortgage Lenders is affiliated with California Mortgage Interest Rates.

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Pay Off Mortgage - Mortgage Amortization Secrets

We all know that putting extra payments down is going to pay off your mortgage faster and save you money. But what not everyone knows are the little insider tips that allow you to know to the penny, EXACTLY, when to use them to pay off your mortgage, how much to make them in, and exactly what you'll save as a result.

See, it's really NOT about how many you make, or how often, or even how much you make them in. When you're trying to pay off your mortgage faster their is only one thing that matters.

Timing.

You see mortgages are structured pretty creatively. Mortgage companies tell you that you're only paying the 5-7% rate, but they never explain what that really means. Our mortgage payments are almost completely wasted on interest at the beginning of our mortgage. This is what makes it so difficult to pay off your mortgage.

What it means is that a $4000 payment may only $250 of principle. The entire rest of that payment goes to PURE INTEREST. It's basically burning a hole in your pocket when it should go to pay your mortgage off.

Now, here's how to beat it. If you make a $250 principle payment on its own... right before you make the $4000 payment then guess what? You just completed that entire payment without wasting $3750 on interest. You moves you amortization down the line to pay off your mortgage. Sure, you'll still have to make a $4000 payment, but you pay your mortgage off $3750 earlier and it only cost you $250! That's how banks think.

If you could get $3750 for every $250 you put in, how many times would you do it? As many as you good and you wouldn't just pay your mortgage off, it'd evaporate.

If this doesn't quite make sense yet then grab a copy of your amortization schedule or The Mortgage Loophole Report and analyze how they'll pay off your mortgage. You'll see.

So...

Catch #1 - If you make a small prepayment at the beginning of the term, you'd pay off your mortgage MUCH earlier than you would by making a bigger principle payment at the end of your mortgage.

When you put the money in at the end you don't even pay your mortgage off as fast or save near the amount of interest because most of your payment is going to principle anyway. As you pay off your mortgage they weaken. Your mortgage pay off time literally depends on this.

So, the secret to pay off your mortgage is to understand the way a mortgage amortization has been structures to accommodate certain methods to pay off your mortgage.

Catch #2 - Although you probably realize that this information is important to pay off your mortgage you probably won't be able to apply it the the extent that you wish you could. Honestly, if you had all the extra cash to pay off your mortgage with, then you'd have made a bigger down payment on your home. It's not until most of us have already been trying to pay off our mortgage that we start to get the extra cash to put towards the pay off.

You can read more mortgage wisdom and secret techniques your bank doesn't want you to know about at the blog: http://payoffmortgageearlyandsaveinterest.blogspot.com

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