Tag: Mortgage Loan

Reverse Mortgages – Beneficial to Seniors

Reverse Mortgages – Beneficial to Seniors

A reverse mortgage, also known as a “reverse mortgage”, is a loan program, typically secured by residential real estate, which allows the borrower to take the value of their home and access the outstanding property value on an unsecured basis. The loans typically are marketed to senior citizens and usually do not need monthly mortgage payments either. In general, the interest rate for a reverse mortgage, especially one that is for people over 65, is much less than the interest rate for a regular mortgage, but there are some exceptions depending on the particular reverse mortgage provider. The borrower must be 62 years of age or older and have a good credit rating to qualify. You can learn more at this website.

When a borrower makes a reverse mortgage, they use their equity in their home, usually less than 30% of the total home equity, to make up the difference between what they would pay for a traditional mortgage on the home and what the lender is offering. This equity can be accessed either to pay down the debt or to pay off other debts. Some homeowners choose to pay off their mortgage early and move to a lower priced rental home or equity-based rental property, while others use the equity to pay off all of their credit card debts. The choice of whether to pay off the home equity with cash and move on with your life, or to pay down debt through a loan will depend on how the debt was incurred and how much equity is left over.

While reverse mortgages offer many advantages to seniors and their families, it can have certain disadvantages as well. For example, these loans are not usually refinanced for a period of time in order to use the extra money. However, there are several options available for reverse mortgages to help seniors and their families access additional funds in the event that their current finances prove to be too tight to be able to make the monthly payments on their home equity loan. Most seniors and their families are unaware of these options. In any case, reverse mortgages can provide some much needed financial relief for those seniors and their families who are facing financial difficulties and need a little extra money every month to ensure they can maintain their current lifestyle.

FHA Mortgage Loan – Insights

FHA Mortgage Loan – Insights

FHA mortgage loan is a US federal aid home loan guaranteed by the Federal Housing Authority. FHA mortgage loan is normally taken from lenders who do not meet the conventional loan standards.

In general, mortgage lenders are the ones to help you, homebuyers, apply for FHA credits. In early 2008, potential thresholds for FHA loans were raised.

FHA loans have always been a good opportunity for home buyers but before you decide, there are some things you should consider. Loans from FHA have always been a perfect alternative for people who are not quite eligible for traditional funding. FHA home buying guidelines allow for “gift money” and circumstances of co-signing with eligible family members. FHA restricts the types of loan programs it insures but it will insure the more common 30-year fixed, 15-year fixed, and one-year flexible loan programs. FHA & VA is competitive, and can be used to your advantage.You can get additional information at Island Coast Mortgage Lenders.

Fixed rate FHA mortgage loan Fixed rate FHA mortgage loan is the most appropriate option for first-time homebuyers as it offers up to 97 per cent purchase price financing.

Insurance on FHA mortgage loans Much cheaper than conventional mortgage insurance is premiums on FHA mortgage loans to make it available for lower income groups. FHA mortgage insurance is often extended at 0 to the total monthly premium.

Financial concept of Federal Housing Administration The agency buys residential mortgages which meet certain requirements. Federal Housing Administration is a government body that helps provide low-income residents with home mortgages who wouldn’t qualify for a conventional mortgage. Federal Housing Administration does not explicitly fund the loans. Federal Housing Administration only offers the facility to anyone with a good credit history, who is eligible to make monthly payments on time, and who has plenty of money to put up the down payment. Federal Housing Administration does not impose restrictions on age or income level, and FHA mortgage loans are open to nearly all.

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