HUD-Approved Counselors, A Requirement for Reverse Mortgages

The information available online today is vast. A great deal of this information can help us and a large portion of it can actually harm us. The Internet is packed full of web sites that allow you to learn a great deal about obtaining a home loan. Yet, when it comes to a reverse mortgage, picking your lender is not your first step in the process. 

The people who are trained for handling reverse mortgages are referred to as HUD-approved, Fannie Mae or Financial Freedom counselors. Reverse mortgages are very personal loans. They are not the same as a loan you would get when purchasing a home for the first time or even refinancing it at some point in time.

The good news is that the people you’re going to talk to specialize in these types of loans. They are trained to understand exactly how to help you get the best type of loan for your personal circumstances.

Most times your needs will fall into the category of the HUD-approved counselor. If you are looking for a Home Keeper or Cash Account type of loan, then you will want to get the Fannie Mae or Financial Freedom counselor. For all other types you’ll want to seek out a HUD-approved councelor. The wonderful thing about a HUD-approved counselor is that these people are trained to have your interests at the top of the list. Not the banks. It is you who they are going to be working hard to please, leaving out any personal opinions or ulterior motives that give them some type of backend referral fee.

For those of you who feel an independent spirit rising in your blood, the fact is every homeowner is required to acquire the aid of the approved counselor. The most common objection is that of money. No worries, these services are most often free of charge. The most you may expect to pay is $50.00 to $75.00. Make sure you check around as a little research may uncover the freebie.

Earlier I mentioned how this loan was more personal in nature. Due to the more personal nature of this loan, you will find your counselor will be asking questions that can be somewhat alarming to some. Especially in times where our financial information is something to be highly guarded due to indentity theft. Questions like, “How old are you, what’s your health like, what’s in your bank account?” Financial probing is never any fun, but in this case, be honest. Although there will be personal questions about your finances, you don’t have to worry about them asking you about any personal habits or preferences like, “Do you like Coke or Pepsi?” or how many times a week you sneak out to eat a Jack burger. The thing to remember is that every question they are asking you is for your benefit. All of this information is kept between you and your counselor. Sort of like the doctor patient relationship. They aren’t going to pass this information on to anyone else. It is simply to help them personalize your loan to suit your needs.

Lastly, you may want to bring along a close family member to help you sort out the details in case you find yourself a little short on memory. And it’s nice to have the moral support if you find yourself a bit stressed about sharing all this personal information with a complete stranger.

A reverse mortgage in years past used to be a very bad idea. Things have changed greatly and today you can expect to be happily surprised at the vast majority of advantages in the reverse mortgage loan. Talking to a HUD-approved counselor can open your eyes to the wonderful ways you can use the equity in your home without actually having to sell it and move out. To learn more about reverse mortgages visit, http://reversemortgageproscons.com and discover the types of loans available as well as the advantages and disadvantages.

Considering 30 or 15 Year Fixed Mortgage Rates

The monthly repayments for 30 year or 15 year fixed mortgage rates are just one important consideration for many people who are looking to buy a home. Buying a home later in life means that many people want to have the mortgage paid off early. Of course, there are many things to consider before agreeing to anything. Home buyers looking into this need to be assured their monthly payments will not increase.

It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. This is always a good thing for those people that do not like surprises. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home for sale.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. Considering longer term fixed rate mortgages was one option if we could not afford a 15 year plan. Still, having a mortgage close to retirement was not what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. Too much pressure was placed on the early repayment of the mortgage loan.

After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan. There were many things that factored into this decision. The most important point was the fact I discovered my wife was having a baby. As she intended to raise our child at home we could not rely on her financial income to the monthly expenditure. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. All things considered, we just did not want to bite off more than we could chew. The monthly payments on a 30 year loan were quite a bit lower.

If we have spare cash throughout the year then we can use it to reduce the capital sum. Those few extra payments also help reduce the number of years you have to pay the loan over. This may be difficult but well worth the effort in the a few years down the line. Our first choice would have been to go for the short term 15 year fixed rate mortgage solution but this did not help with our more immediate situation. In retrospect, everything worked out ok for us by going down this road.

Find more info on reverse mortgages and loans visit What Is Reverse Mortgage also visit Reverse Mortgage Rates

The Function Of A Mortgage

If you were to be asked to describe and give a definition for the word mortgage, would you be able to, because it is surprising how few people know what they really are. Some people have gotten into the habit of calling them mortgage home loans but that isn't right at all as they are not loans at all. The mortgage is basically a way of securing a debt to which the property is the security with the mortgagor as the person who will owe money to the mortgagor. More accurately, it is a document that protects your lender's interest with your property itself and a legal agreement you have provided to a lender.

The facility that a mortgage creates means individuals and companies can acquire land or property without needing the full face value to purchase it at the time. Although this article is brief, below are points that will help more in the understanding of how this system operates.

The mortgagor who is also referred to as the Borrower (leading to the false impression that it is a loan) and the mortgagee, who is also called the Lender (again, falsely leading you to think that a loan has been agreed). The security the mortgagee uses is called a lien which is a legal term that stays in force until all monies are repaid.

The mortgagee's money is then protected by this knowing the property is in fact security against its own debt. Records of this are normally kept in the public records section of the county courthouse or a similar establishment. This is now a recorded legal agreement and cannot be reversed until the full balance of the debt is cleared.


While the property is owned now by the mortgagor, the lien cannot be reversed until the amount specified in the debt is paid off. While the mortgagee has legal possession of the property, he does not own it or have the title to it, the legal owner is the mortgagor.

The only time the mortgagee has any rights over your property is in the event that you default on payments when he can sell it to recover the outstanding debt. This process has many names and in the United States it is referred to as foreclosure but this does need to go through the courts.

This is a legally recognized process that must take place often referred to as 'judicial foreclosure'. Obviously there is much more to the subject than this, but these are the basic foundations upon which the mortgaging system has been constructed.

 

Find more information on mortgage foreclosure and loans here Foreclosure Homes Listing also visit Free Foreclosure Listing

Understanding The Home Mortgage Calculator

When you have finally decided to take that plunge into home ownership, it can be a scary and exciting time and you may be worried if you are really able to afford it. But then again, there is that part of you who is thinking you can't afford not to buy a home. So, where is a good place to start in figuring out what you can and cannot afford? Your best bet is to really figure out what your bring home monthly income is and then use a home mortgage calculator to determine what you have going out in expenses versus what you have coming in with income.

Entering in the price of the house, including taxes and insurance as well as the number of months of the loan and the interest rate will return a monthly payment amount. Additionally, most home mortgage calculators will allow for input of a down payment, where different amounts can be entered to show how adding a couple of thousand to the down payment will trim dollars from the monthly payment. Playing with the variables allows a potential home buyer to look at all the options quickly and easily, helping them determine if purchasing the home is a viable option. The only real problem with using mortgage calculators to calculate a monthly payment is the interest rate that particular user may be paying. If something in their past gives them a lower credit score, they will need to know how much they will be charged to make the figures more accurate.

If you are desperate to buy a home and really need to find a way to make it work, make sure you take a really close look at your expenses that are eating up your money each month. Are there things you can let go of? Are there things that you can make cut backs in? And make sure when using a home mortgage calculator, whether or not it is including the figures for your home owners insurance and for your property taxes as these are bills that cannot be let go of and should never run behind. Generally, loan  calculator will have a spot to place an estimate for those but you just want to double check.

Also, you may want to consider seeing what help is available for down payment and closing costs as the more you can place as a down payment, the lower your monthly mortgage payments will be. You will see, if you play around with a home mortgage calculator, how much of a monthly difference it will make for you the more you are able to put down. So, as for down payments, you want to be able to input the most realistic down payment amount in the calculator in order to get the best result.

To get more info on reverse mortgages and loans go to Reverse Mortgage Quote

 

Jumbo Reverse Mortgage Makes Sense

Reverse Mortgage Video

Unlike a regular (or forward) mortgage, where you have to make monthly mortgage payments, with a reverse mortgage you borrow money, but do not have to repay the loan until you either sell the property or die. At that point, the lender is repaid the principal and all of the accrued interest. Reverse mortgage rates vary according to the market. However, closing costs are significantly higher with reverse mortgages. 

Lenders recover their loans plus interest from the sale of the home when owners die or move out. Lenders will work with you to determine a mortgage rate, as well as decide if you will need any mortgage insurance or a second mortgage. It is a good idea to shop around for a good reverse mortgage quote from a lender or mortgage company, as every institution will offers different mortgage rates and mortgages.

Lenders may pay HUD-approved counseling agencies for counseling services, through a lump sum or on a case by case basis. The lender payment may be made directly to the counseling agency or disbursed at closing by the settlement agent.

In fact, you don't even have to repay the loan until you move out of your house, sell, or die. Whatever debt is left on your house is settled with the proceeds from the sale of the home. With a reverse mortgage, your debt accumulates as the bank doesn't collect the payments till the loan period ends or you or your heirs sell.

When you get your reverse mortgage quote, know that the reverse mortgage can be set up as a lump sum payment, a line of credit, or paid in monthly installments. Homeowner has three business days after signing papers in which to cancel the loan. Upon expiration of this period, the loan funds are disbursed.

Essentially, a reverse mortgage is a way to borrow against the value of your home without having to move out or take on additional debt payments. It's a way to give yourself extra income, pay off unexpected medical bills, come up with the cash to visit the grandkids more often, make repairs to your home -- in short, you can use the money for anything you want.

Reverse mortgage rates are not different form traditional mortgage rates, and when you are applying for a reverse mortgage you should make every effort to find the lowest reverse mortgage quote you possibly can.

More info on reverse mortgages can be found here FHA Reverse Mortgages

What Is Reverse Mortgage

What Is Reverse Mortgage

Although there are many mortgage options now being offered to potential homebuyers, one that has received a lot of attention is the reverse mortgage.  The United States Department of Housing and Urban Development, also known as HUD, is currently being inundated with questions with a large number of people asking “what is reverse mortgage?”

A reverse mortgage is actually backed by the federal government even though it is officially a private loan.  With this, the homeowner’s equity is used for a variety of things.  Keep in mind that when answering the question of what is a reverse mortgage and is it a good choice, some restrictions apply.  For instance, this type of mortgage is one available to the elderly with the funds being used at the discretion of the homeowner.

One of the aspects of a reverse mortgage is that the homeowner does not have to have his or her income checked.  Even so, to determine how much money can be taken out, the interest rate on the loan, and even the monthly payment, a number of things are looked at by the lender.  As a starter, the borrower has to be at minimum, 62 years of age.  Then, the homeowner must live full-time in the home, have adequate equity, and complete a special counseling session provided by HUD.

Other important information that goes along with the question “what is reverse mortgage” is that the homeowner can choose the way in which the funds are distributed.  For instance, money can come to the homeowner as a monthly payment, a lump sum, a specified line of credit, or any combination of the three.  The most critical piece of information is that the mortgage on the home is not paid until after the homeowner passes away, moves, or sells the residence.

Of course, while there are many incredible value factors for what is a reverse mortgage, gaining knowledge about the good and bad is what will ultimately help the homeowner move in the right direction.  As you will see below, consider the good and bad sides to a reverse mortgage prior to making your final decision.

The Up Side

One of the primary benefits linked to a reverse mortgage is that the homeowner is allowed to use the home’s equity for numerous things.  For example, the money could be used to travel, make updates on the home, and pay off medical bills, or send a grandchild to college, and so on.  However, in trying to manage bills during later years, many homeowners use reverse mortgage funds to supplement a retirement account, savings, or Social Security income.

Another advantage of a reverse mortgage is that all the money being taken out against the equity is completely tax free and, there are zero restrictions on income.  This means if the homeowner is bringing in only a small amount of money each month on which to live, or has no income at all, he or she would still qualify to use money from the equity.

Without verification on income and no monthly payments until dying, moving, or selling, the reverse mortgage is beneficial to many.  For the elderly homeowner, a mortgage such as this allows them to continue on with a certain lifestyle without being overwhelmed.  People who have worked long and hard their entire life can use funds from a reverse mortgage to kick back and enjoy life.

As long as the homeowner owns and lives in the home, no money on the mortgage loan is paid back.  However, as mentioned if the person moves, sells, or should pass away, then the reverse mortgage would then start to be repaid.  In the case of having heirs, anyone thinking about this type of mortgage needs to have a full understanding of all the options and factors since there are a number of variations.

Disadvantages

Unlike more traditional mortgages, a reverse mortgage is generally expensive to secure.  Some of the connected costs include application fees, insurance, closing costs, appraisal, and in some cases, a monthly fee for the loan being managed by the lender.  This in addition to the continuance of other home fees such as insurance, tax, repairs, homeowner association dues, and so on would need to be considered too.

Then, along with the value of what is a reverse mortgage, consider that for the application to be approved and the funding to become available, the house has to be in good order.  This means the structure itself has to be sound and there should be no serious repairs.  Even with this, there is a good note in that if the homeowner were faced with problems of repair, most lenders of a reverse mortgage would simply add the cost into the principal of the loan.

The question of what is a reverse mortgage and is it a good choice is very important.  With a ton of information to decipher, doing your homework and talking to a professional from HUD will help guide you in the right direction.

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Understanding Reverse Mortgage

Not lots of folks have even heard of a reverse mortgage, let alone understand what it is all about. For people who have perhaps heard a commercial on the T. V. About reverse mortgages, most know that you need to be older to get it and you do not need to ever repay it. Well, there's a small truth in that but not utterly as the reverse mortgage does need to be paid back in one way or another. For some, this is going to be a perfect way to better their current living situation apart from others, this could lead to something they actually did not desire.

Just like anything else, before signing for reverse mortgages it's important to grasp precisely the way in which the program works, who it'll benefit more, and what your long-term plans were with your house and its equity when you pass on. It can be a terrible thing to consider, but when considering reverse mortgages, it's important to take everything into account. This could be something that you would need a counsel or maybe a member of the family to look over with you, as they may be ready to point something out about reverse mortgages that you didn't even think about.

How It Works

Reverse mortgages are loans or mortgages against your house that you don't have to reimburse in monthly payments, for as long as you live there. But the debt is still owed to the company and you aren't getting something for nothing when working with reverse mortgages. If you have equity in your place, you can borrow money and use it for whatever you see fit.

The strategies that reverse mortgages can pay out to the borrows are thru one one-off sum payment of money, thru a money advance that is spread out over months, and as a credit line kind of account that you can pull cash from whenever you feel that you have a requirement for it. Now, remember I discussed you aren't getting something for nothing? Though you don't have to make any monthly payments back to the bank whilst you live in the home, if you die, permanently move out, or sell your house, you are required to pay them back the cash you borrowed and some. Typically , the owners are required to be at least sixty-two years old or older to be suitable for reverse mortgages. For some folks, this is their only chance at taking the equity in their home and living the good life, as a large amount of folks in their retirement years are not in a position to afford any more monthly costs.