Real Estate Market

I talk to senior homeowners every day who have tons of questions about the efficacy of Reverse Mortgages. “Is this a good idea for me?” “Will I lose my home?” “Now the bank will be on the title of my property, not me, right?” These are legitimate questions. Many things in life have advantages and disadvantages. Reverse Mortgages are no different. So here are some things that may help you if you’re looking for information on Reverse Mortgages:

The PROS of Reverse Mortgages: (also called senior mortgages)
• Tax free income guaranteed by the Federal Government which continues as long as your home is your primary residence.
• You can change your plan at any time from a line of credit, cash out, monthly checks, or a combination (depending on what remains).
• The remaining Line of credit grows each month at half percent over the current interest rate.
• Unlike an equity loan there is no income, credit, or health qualification.
• A good option for seniors who wish to remain in familiar surroundings and in the same community where they’ve lived for years.
• Moving can cause emotional turmoil for many senior homeowners; memories were made in your “home sweet home”. Proximity to love ones and remaining in community may seem a better option.
• Reverse Mortgages can satisfy your existing mortgage or debts, though your debts are transferred to your Reverse Mortgage balance. (Your home does not have to be free and clear to qualify.)
• There are no out of pocket costs other than the appraisal fee and HUD counseling. Some HUD counseling organizations do not charge a fee depending on which HUD counseling agency you choose.
• You can remain in your home no matter what is owed the lender. You can never be forced out of your home as long as your real estate taxes and homeowner’s insurance are paid and as long as you maintain your home.
• You can refinance your Reverse Mortgage over and over again as long as there is equity in your home.
• Upon the sale of your property you can never owe more than the home is worth. However, if you choose to pay off your debt and live in your home or if your heirs decide to pay the debt upon your passing and retain the home, repayment of the full mortgage debt will be due.
• Your assets cannot be attached to repay the mortgage debt, and the debt does not pass to your heirs or your estate. The home stands for the debt.
• Reverse Mortgages have many safeguards: capped interest rates, a limitation on fees, HUD counseling, asset protection (non-recourse loan), no maturity date (cannot become due during a borrower’s lifetime).
• Can be a financial tool to help heirs avoid some of the real estate tax.
• Your heirs may be able to claim the interest from your mortgage on their income taxes after your passing. (Be sure to consult your tax advisor.)

Now, those are the pros. Pretty easy, right? Sure, the dutiful old loan officer always gives you the good parts! But there are some things you need to know that some may feel are drawbacks to Reverse Mortgages. So here are the cons:

The CONS of Reverse Mortgages:
• A Reverse Mortgage has all the typical closing costs one finds with a typical mortgage. However, they can be more costly. There is FHA mortgage insurance and additional closing costs. But the costs are still typical of an FHA mortgage.
• A Reverse Mortgage can reduce your children’s and grandchildren’s inheritance. A Reverse Mortgage is a rising debt loan since no mortgage payments are being made. It is the opposite of a typical mortgage where equity increases as mortgage payments are made.
• Selling your home can often provide a greater return on your investment than a Reverse Mortgage.
• Moving from your residence in less than five years makes a Reverse Mortgage impractical. It does not make good sense to use a Reverse Mortgage short term.
• If you fail to pay your real estate taxes or homeowner’s insurance or neglect to maintain your home, the lender may require repayment of the debt. (Lenders, however, will work with you to cure the default.)
• If you leave your primary residence for a period exceeding 12 consecutive months, the Reverse Mortgage will become due. (Nursing homes, assisted living, etc.)
• If your heirs wish to benefit from your home after your passing, they can sell the property and keep the remaining equity or they can get their own mortgage. However, in keeping the home the full balance will be due.
• Medicaid may be affected, and you may not qualify for benefits unless you spend down your Reverse Mortgage proceeds each and every month. (Check with your attorney and Medicaid to discuss Medicaid’s parameters.)

When NOT to get a Reverse Mortgage:
• An equity loan may be a cheaper way of getting cash out of your home as closing costs are lower.
• If your primary goal is fixing up your home and a community loan is adequate, a Reverse Mortgage is not your best option.
• If you are ill and assisted living or a nursing home is imminent, do not choose a Reverse Mortgage.
• If your financial situation precludes you from keeping up maintenance, taxes, or insurance on your home, forego getting a senior mortgage.
• When family members or trusted advisors suggest that a senior Mortgage is not a good option, consider their suggestions and keep an open mind as they have your best interests at heart.
• If your children invite you to move in with them, this may be the perfect alternative to staying in your own home.
• A homeowner whose residence utilizes more than 25% of the total living space will not qualify for an FHA Reverse Mortgage. Don’t waste time trying to get approved.

Keeping an open mind about senior mortgages is a must. Erroneous statements have shown up in print scaring away senior homeowners who would have benefited greatly from this wonderful program. Be careful about accepting information from those who are not experts in the field. If you’ve got questions, contact your local Office For the Aging or log onto HUD.gov and look for a Reverse Mortgage counselor. The counseling is free! Also, feel free to call me any time from 9 am to 10 pm seven days a week. I am here to help. This is what I do every day!

If you plan to apply for refinancing, one option is interest only mortgages. This is relatively a new option in the refinancing sector and even in the home buying sector. To find out whether it is the appropriate alternative for you or not, you have to understand the basic underlying facts about interest only mortgages. Here is a short guide on refinancing through interest only mortgages.

1)More disposable income

The main advantage of interest only mortgage lies on the capability of many homeowners to gain better flexibility in their monthly cash flow. Refinancing under this scheme allows homeowners access to a greater level of disposable funds since they are at the outset required to pay just the interest on their mortgage. With the absence of the principal payment to worry about initially, homeowners can afford to choose a bigger house.

Although the interest only mortgage may not emerge as the best option, this shows to be advantageous to homeowners in fulfilling monthly obligations regularly with less risk of accruing default payments.

2)Uncertainties pose by variable rate mortgage

Interest only mortgage is commonly offered with a variable rate mortgage. This means that the interest rate depends on the prevailing market rate. If the rate falls down, this is an advantage to the borrowers. However, if the rate significantly goes up this becomes more costly to the homeowners involved.

However, there are situations which show that refinancing under interest only mortgage with variable mortgage rate is a good proposition. Its plus factor becomes more evident when a hybrid mortgage is availed of with a fixed interest rate for the duration of the interest payment term only and variable mortgage rate during the course of the principal and interest of the loan portion. The homeowner concerned may derive positive gains if the plan is to stay in the house not longer than the term of the interest period.

3)Absence of home equity

If there is one drawback of the interest only mortgage, it is the limitation factor to homeowners to build their respective home equity if only the loan interest is under settlement. expected gains as a result of the sale of the house will later pose a problem to homeowners. Refinancing with an interest only mortgage has both positive and negative benefits. To make this work to your advantage, this alternative must be reckoned with your requirements, actual situation and your future plans.

Let’s say that you have obtained a mortgage loan with Citibank. As the banking subsidiary of the financial giant Citigroup, there are a huge percentage of homeowners who might have obtained their mortgage loan through this bank.

With the financial crisis that has occurred for a good part of the past five years or so, you could be part of the American population affected by the housing meltdown. If this is the case, you need to work with your lender – which in the example is Citibank – so that your loan will have more borrower-friendly terms.

Rather than taking the risk of having your home foreclosed, it is a much better option to learn about the ins and out of Citibank’s mortgage loan applications department. Which business processes do they currently apply here? If you’re a homeowner who is having problems paying off your monthly mortgage, how can you negotiate better rates with the bank? That is exactly what we will try to find out here.

Don’t be Frustrated: Know the Inside Secrets to CITI Mortgage Loan Verification

For most people who are trying to get better terms for their home loan, it can be very frustrating to have their mortgage loan modified. This is especially true when you are already behind on your payments – and you feel that the tedious process is less than helpful in filing your case.

As such, it always pays to familiarize yourself with the process of how CITI goes about mortgage loan modification requests. The first step that you need to go through is having to call the department which deals with loan relief. It’s pretty difficult to keep up with what they are currently calling this department, but for a good bet you can always ask for, or be directed to, the Homeowner’s Assistance Team.

No matter which department it is that you were led to, what’s important is for you to be clear about what you want – and know that you’re speaking with the right personnel so that you will not be wasting your or the representative’s time.

Next, your loan modification request will be undergoing the typical review process. Typically, it will take 30 to 90 days for your loan modification application to be approved or disapproved – so prepare for quite a long wait.

Keep in mind that the way that CITI calculates your household income and expenses within the household might be quite different from your own calculations. As such, it pays to make certain allowances – and always present your finances in a good light. During the maximum of a 90-day wait time, it would not hurt to make follow-up calls just to see how things are going.

The final step would be your receiving that approval or denial notice. Do not think that it is the end of the road if your loan modification request was disapproved the first time. You can always re-apply, and present your finances in a better light the second time around. There’s no doubt that persistence is the key if you really want to have your loan modification request approved.

At the end of the day, the final result is that the loan modification’s approval will result to your getting better interest rates, lower monthly payments or a longer allowance for the entire loan to be paid off.

Learning as much information as you can regarding the loan approval process of CITI is the key if you want the results to work to your favor. With the help of a loan modification program, you can gain better control of your financial life and have more borrower-friendly rates for your mortgage loan.

Have you ever tried approaching any lender for $70,000 unsecured loan? When your annual income is around $40,000, it is going to be very difficult for you to convince the lender to offer such a huge amount without any security whatsoever.

The option of going in for secured loan does not exist because there already is a mortgage on your house. Well, who says you cannot take a second mortgage on your house? Would that not be illegal well? Yes. It would be illegal if you pledge the same property to two different persons.

However, when you only pledge the equity in your house to the second lender, you are not doing anything illegal at all. What is equity? Equity is that portion of the value of the house that is free of any obligations or encumbrances. If you have a $100,000 house and if you owe $60,000on your mortgage loan, the balance $40,000 is your assets-equity.

You can offer the equity as a security to get a consolidation loan. you will find it easier to get this loan even if you have a less than perfect credit score. If something goes wrong, the lender always has the option of seizing the equity in your house and disposing it off to recover the amount.

This is not a bad decision at all. Rather, it is sensible division that will maximize the extent of utilization of assets. Of course, you will have to bear the expense of the second mortgage and you will have to complete the formalities quickly. In this task, you can make use of the World Wide Web to get the best relief possible.

By consolidating your debt you will be reducing the interest payment that you made your credit card issuers. Further, you will have extra cash in your hand and you will have peace of mind because debt collection agents will stop troubling you. Don’t you think this is a very beneficial option that you should exercise as quickly as possible?

The smartest way to extract maximum benefit from the consolidation loan is to convert it into a secured loan, utilize it when the interest rate regime is very low and repay the debt in a regular manner.

On the contrary, the risks involved in such a transaction is that you will lose the possession of your house if you are not in a position to repay your secured debt on time. This is one complication that does not exist as far as unsafe credit card debt is concerned.

In spite of its growing popularity among new home buyers, FHA loans are incapable of offering direct refinance on mortgages. However, there is no other program which is as user friendly as FHA loans. The guidelines stated under this program can help you qualify for a mortgage modification.

In fact this program has passed through automated underwriting even before coming up with its own automated underwriting system as it is more time saving and reliable for all its end users. To become eligible for a FHA home loan modification program, an applicant needs to qualify thoruhg a few set rules and guidelines. Following these guidelines becomes imperative for all those applicants with bad repayment history or for those who are in a financial crunch. Besides filling the form properly, applicants should also meet the requirements for securing this loan.

A few guidelines that help you become eligible for FHA Home Loan Modification Program:

• Acquaintance with FHA loan modification requirements would help you improve the probability of procuring the loan.
• A letter stating the adversities you have been through and which has prevented you from making payments promptly on a regular basis. This letter should also mention the corrective action taken by you to improve your financial position and thus assure him of guaranteed and prompt payments in the future.
• A financial statement depicting your current position should be submitted to the lender so that he would speed up the loan modification process as per FHA modification program norms.
• A file designed as per the stated guidelines of this program needs to be submitted to the banker. This file should briefly depict your employment details, credit history and other information that qualifies you for home mortgage.
• Ensure that all the information you have submitted is complete and as per the norms of the loan modification program. This can only minimize the probability of your application getting declines.
• Hundreds of applications for this loan modification program are being submitted on a daily basis. So, applicants should not hesitate to call the concerned officer in order to find out the status of his application.

Gaining financial leverage does not necessarily mean that you need to have a substantial pay package, own a large home or drive a high-end car. The critical aspects of your financial management are your competency and capability to handle your personal finances sensibly so that you are able to live a comfortable life. A comfortable living means that you are able to enjoy healthy environment, eating, adequate shelter and clothing. It is important that you are able to satisfy your needs as well as your wants by having sufficient amount of money. The source of funds to support your kind of lifestyle must come from your earnings and not from borrowings. The core foundation of a good financial management is the development of the right habits in handling personal finances. Proper management of personal finances must be second nature to you.

In order for you to have the necessary finances to support your home improvement project or upgrade, personal finance experts recommend that you start by plugging the leaks of your financial portfolio. This means that you must identify the problem areas and start implementing corrective actions to resolve the issues. These “financial cracks” may have different forms for every family.

The following is a quick rundown of the most important tips that you have to follow in order to “plug” those leaks in your financial portfolio:

1. Gather the basic information about your finances

You need to establish a complete profile of your finances. It is also essential that you get data and information that would cover a specific time range. For instance, you have to get hold of your credit card bills and bank statement for the last six months. As soon as you are able to gather all the information about your expenditures and incomes, the next thing that you must do is to group these items into logical categories. You can perform this task by using your own spreadsheet or choosing one of those spreadsheets that are available online.

2. Sum it all up

As soon as you are able to completely organize the expense items, sum up the items in each of the categories to determine what your financial position is in each of the main expense categories. It is important that you don’t under-estimate your income and expense items.

Here are the major items which you need to carefully assess to ensure that you get an exact measure of your financial position:

• Income source – all sources of income, including your salary, bonuses, rental income and benefits.
• Housing expense – utilities and maintenance, insurance, property taxes, mortgage payments or rents
• Communication – internet, home phone, cell phone
• Entertainment and Leisure – vacation and travel, health clubs dues, liquor and beer
• Children stuff – parties, gifts, lessons, clothing

3. Compute your percentages

Use your NET income as your base figure in analyzing the specific items of your personal finance portfolio. Financial experts recommend that your mortgage or rental payments must not exceed 30% of your net income. Other basic guidelines that you have to follow in managing your cash outflow include 10% of income for compulsory savings, 15% of income for debt servicing and 15% of income for transportation expenses. There may be some aspects of your personal finance where you breach the upper limit. This may be allowed for a few items. However, if you are going beyond the limit in almost all of the expense items, then you really have your work cut out for you.

4. Establish your priorities

Determine which items are more important than the rest. In the event that you need to overhaul your expense items, then it is incumbent upon you to make adjustments or give up items you consider of less importance than the rest of the expense items. In most instances, major adjustments are usually done on items involving recreation and entertainment.

5. Formulate your monthly budget

The last thing that you must do once you are able assess the critical aspects of your personal finance portfolio is to formulate a monthly budget. With the proper handling of your expense items, you will be able to come up with a financial template that achieves a perfect balance between your essential expense items and fun stuff.

Are you prepared to get a home mortgage? Do you want to find the best home mortgage, and in the process, perhaps save as much as $10,000 or more? Let us discover some great information!

There are many lenders out there, all offering mortgages. This is a good thing, because it means that you can actually go through and save. Competition means finding the greatest gem.

There is a need to actually be able to go through and research, and this is what will bring about all the savings that you seek.

Banks are one source, and many go with this option, but the truth is that they are also the most expensive, so finding smaller lenders is a great option.

The process of research can help you discover these great options. The key is to actually be able to go through and find the best options.

There are many advertisements that deal with getting a mortgage to buy a home. However, there are some things to remember. This can take up a lot of time.

There is a need to actually be able to save some time in this process, and it can happen. This is something that the internet is a great resource for.

Many lenders are now online, and some even allow you to apply online. The benefit with this option is that research is not waiting to see a billboard, but to actually be able to go through and discover the options in a short period of time.

Within an hour, you can find the best offers, and it makes all the difference. The next step is to actually get started!

Are you looking to find the best mortgage? If so, you will want to check out these 3 great tips to getting a mortgage. Discover the information you need.

There are many people who can offer you a mortgage. We call them real estate professionals. Before going to there advice, you will want to find out some amazing information that will help you find the best!

Why settle on the advice on real estate professionals? It can be a good idea, but like a sales person, it is a good idea to go through and know some things that will allow you to find the best.

The first step is to remember the interest. There are all different kinds of mortgage packages out there.The first step to getting the best, is to look at the levels of interest. The lowest levels of interest are the key to saving.

And with this knowledge, you can actually go through and find the best offers that could save you $10,000 or more! This is big money, and it can make all the difference.

Next time the sales person tries to offer something, you will know how to save.

So, this sales person comes, and has an offer. The interest level is one component.The next component are the hidden charges. This is an essential consideration, because it makes all the difference in the long term. Making sure that the package is ok, in the hidden charges department will make all the difference in the long term.

The next aspect to consider, is the lender. Good lenders are more better than those lenders who foreclose soon as there are problems. Look online and find out more about the potential lender.

When you think about buying a house, you usually do not have a lot of cash with you. A mortgage is then an answer to all your questions. Mortgages make the process of home buying as simple as ABC. Despite this many people are not in the favor of them. The reason is that they are somewhat scared of Cincinnati foreclosure if they somehow failed to make the payments within the given time. Cincinnati filing bankruptcy will then be their way out. However, if you think you can afford to buy a home, then mortgages will be your best options.

Before you begin, you should learn about mortgages and how it works. A mortgage is simply a legal contract that states that the lender has a right to own their property if you fail to pay back the loan (inclusive of interest and fees) given to you. The US law states the “lien theory” which means that the mortgagee holds a lien on your property and has a right to foreclose it if you do not pay back the loan within the given time.

There are many types of mortgages. The most favorite is the fixed rate mortgage. Fixed rate mortgages are usually the most sought after option. The interest rate in this type of mortgage remains the same until the total lifespan of the loan. Second one is the adjustable rate mortgage. The interest rates do not remain the same in this type of mortgage. They keep readjusting according to the period you select. There is a certain frequency that decides when the rates will be adjusted. For instance, if you are going for 3/1 loan, this would mean that your interest rates will not change for 3 years, but every three years they will be readjusted. Balloon payment mortgages are the third type. In this type of mortgage you are required to pay a certain amount of money after only a short time.

Now that you have decided for a mortgage, you must now look for a trusted and reputed lender. He is the one who will help you in finding the house according to your needs. When you get access to a lender, you will get to know how much you can spend and then you can carry on finding a house according to that. Being pre qualified for a set amount will make it easier to explain your current financial situation to other lenders as well. This will also make it easier for the lender to decide whether the house you are opting for will have enough assets to return back the loan within the time allotted. The next step is to pay for house inspection that is applicable to most of the types of mortgages.

There are also a few other things you need to be aware of before you set for a mortgage. You must know about the Annual Percentage Rate (APR). This gives you a clear idea of how much you will have to spend. Also this can save you from lender scams. Make sure you pay the down payment as this will certify your loan. Also check your credit reports for any errors before you select a mortgage.

Normally when trying to get out of debt, paying off the mortgage is the very last one that gets paid off because it’s normally the largest. Many want to get this out of the way to completely own their home and avoid all the extra interest that is causing them to lose money as the years go on. There are some techniques that you can use to get the mortgage paid off early.

Cut out all the extra expenses that don’t really matter as much. There are many things that are spent during the month like $4 coffee or extra items that you really don’t need. Cut out things you really don’t need like movie rentals, going out to eat more than a couple times a week, and others. Take all this extra money and apply it towards your mortgage payments.

Look at improving your credit score by eliminating any mistakes that are on it. When everything looks good on it, go and try to refinance your mortgage. You could qualify for a shorter term loan with a much lower interest rate. If it makes financial sense to do this, you can save money on the interest and end up getting your home paid off much earlier. Be aware that there are many refinancing scams that can get you into trouble, so do your homework to make sure you don’t land yourself in financial trouble accidentally.

Sell of some things that you really don’t need. There could be thousands of dollars of items in your home that you could sell and apply towards your mortgage to get it paid off months earlier. Whether it be on the internet or a good old fashioned yard sale, you can make easy money with things you don’t plan to use ever again.

Consider increasing your income. For most people, the easiest way to do this will be to get a part time job. Take the earnings from this extra job and apply it towards paying down the mortgage. This is tough, especially if you have lots of other time commitments, but it will help you get to your financial goals much quicker.