Kettering Reverse Mortgages

Reverse Mortgages in Kettering

Reverse mortgages are a great, and safe, option for senior citizens, ages 62 or over. If you own your own home, and need extra money, then get a reverse mortgage will help you. It’s a great way to get a lump sum of cash, monthly payments, a line of credit, or anything else possible.

Kettering Reverse Mortgage Benefits

  • Keep your house as long as you live. You don’t lose your house
  • Loan is only repaid once the borrowers die, or move out of the house, or the house is sold.
  • Payments available as line of credit, monthly payments, lump sum.

Kettering Reverse Mortgage Pitfalls

  • The reverse mortgage has an interest rate.
  • There are costs and fees attached to a reverse mortgage.
  • They can affect your eligibility for other types of loans.
  • They can impact the inheritance of your heirs.
  • It might impact your eligibility for Medicaid, and Supplemental Security Income (SSI).

Kettering Reverse Mortgages are based on

  • The age of the borrower is important. The older you are, the more you can borrow. All borrowers have to be at least 62 years of age.
  • The property, and the value of the property is important.
  • FHA property reverse mortgage limits for your area.
  • Current interest rates for your local area.

Reverse mortgages brokers Kettering are programs designed to enable senior homeowners 62 years and older to convert part of their home equity into cash.They can do this without having to sell their home or give up the title. Pick the right reverse mortgage lender to help you.

–  Reverse Mortgages, also known as HECM – Home Equity Conversion Mortgage, is a federal program that is insured by the federal government. This program is designer for senior homeowners, and lets them release a portion of the equity of their home. This equity is released to you in the form of a lump sum or monthly payments.

–  Reverse Mortgages do not result in you losing ownership of your house or being forced to sell your house. You stay in your house as long as you live or until you sell it.

–  Reverse mortgages aren’t free government grants. They are legitimate loans, backed by the government. Reverse mortgages are a mortgage loan and interest is charged.

–  HECM Interest rates are at an all time low, in addition getting a reverse mortgage can be an additional source of income. With the aid of reverse mortgages, you can be independant and remain in your house.

 

Reverse Mortgage Pitfalls

Reverse mortgages can be a curse and a benefit. If you have a substantial number of equity in your house, a reverse mortgage can be quite an invaluable means to take advantage of this equity and make use of the money for whatever purposes you need. Many elderly homeowners have done that, and therefore are enjoying the results from this. Nevertheless, there are lots of things to bear in mind when it comes to a reverse mortgage. Too frequently, a homeowner can create a radical error and find yourself frustrated, rather than enjoying life because they need to be. Here are a few reverse mortgage pitfalls to recall.

Than you need to start, you should not simply take out a reverse alternative mortgage for more money. Would you actually want most of that money?, if your house is valued at $ 75, 000 money? Sure, all year you could pay cash for a brand new car or go on holiday, but do you actually want to? to? You have to take a seat and consider why you want a reverse mortgage before you get one. There was no shame in taking advantage of the equity in your house, but if you are simply going to waste all of it, then you have made an extremely foolish move. The old saying continues to be true: Usually do not borrow a lot more than you will need.

Secondly, a reverse mortgage pitfall in order to avoid is getting the cash in a single big lump sum. While it is very tempting to have that big golden egg dropped in to your lap, it is a lot wiser to obtain the amount of money with time. Exactly why is this? As the lender charges a great deal of cash for it you need to not choose for a lump sum. It is really a big adversity for a lender to cover you tens of a large number of dollars all at one time, and they make up for it by charging sky-high rates of interest and other fees.

Last but not least, the pitfall you will need to prevent the majority of all is neglecting your children or heirs. You’ll recall that the reverse option mortgage will not have to be reimbursed until you die, but after you pass away, who has become in charge of the debt? Your young ones or heirs. You would perhaps not need to be stuck with a tremendous debt that is not yours, so be considerate of it will be taken by those who up in your stead. Talk to them and make certain they could manage the responsibility.

In the event that you keep these pitfalls in your mind and be sure to prevent them, you’ll soon be on the way to enjoying the numerous advantages of a reverse mortgage.

Reverse Mortgage Step By Step Process

1. Do Research

Get information and contact reverse mortgage lenders in order to determine if a reverse mortgage is the right course of action for you. If necessary, ask your family members for advice on how to proceed.

2. Get Counseled

HUD insists, and requires, that you receive third party counseling from a HUD approved counselor. This counselor, is a third party, and ensures you understand your reverse mortgage options.

3. Application Phase

Begin, and complete, your application. Give all necessary information, and give as much information as possible. You can elect to receive payment in one of a few ways:

  • Lump sum
  • Monthly Payments
  • Line Of Credit
  • Any combination of the three above

4. Processing

Your application will be processed by your lender, who will then handle all forms of due diligence. That means getting an appraisal done, your title run, liens that need to be paid off, and in addition your credit report will be run by them – if needed. The appraiser determines the value of the home, and uncovers any issues that may prevent you from getting a loan.

5. Closing

After the loan is approved, the next step is signing everything. The loan interest rate is calculated, and all the closing costs are figured out. You are presented with the closing papers.

6. Disbursement Of Funds

After you sign all paperwork, you get three days – for buyers remorse – in order to cancel the loan if needed. Once that period is passed, the loan funds are disbursed. You begin to receive payments according to the payment option you had selected.

Reverse Mortgage Requirements

Wondering what are the requirements for a reverse mortgage?

This article is a “to the point” and blunt informational article to tell you about what are the reverse mortgage requirements.

Reverse Mortgage Borrower Requirements

– Be 62 years of age or older

– Own your property outright, or have a very low mortgage left

– Live in the property as the principal residence

– Do not be delinquent on any federal debts

– Participate in a counseling session given by a HUD approved HECM counselor

Reverse Mortgage Property Requirements

In order to fulfill the reverse mortgage property requirements, you must have one of the following conditions satisfied

– Single family home, or a 2-4 unit home with one unit occupied by the borrower

– The property has to be a HUD approved condo project

– It has to be a manufactured home which meets FHA requirements

Reverse Mortgage Requirements – Financial

– Your income, assets, and other expenses/credit history might be verified/authenticated

Reverse Mortgage Financial Payment Plans

Lump Sum: Get the proceeds in one bulk payment

Line of Credit: Get payments at irregular intervals (when you need it), in an amount of your choice until the line of credit is exhausted

Monthly Payments: Get monthly payments for the term of the loan until the line of credit is exhausted.

Everything You Need To Know About A Refinancing Home Mortgage Calculator

Every adult has a dream of owning their own home as well as providing shelter for the family. The route to real estate is quite long as well as winding and ridden with pitfalls. Traditionally, people save their money by putting it in a bank deposit and purchase a home by taking a bank loan.

The bank takes the responsibility of purchasing the house on your behalf and the home owner repays the bank the cost of the house including interest over a period of time. This repayment period is normally about 15 years and this repayment is commonly known as a mortgage. Due to unforeseen circumstances some home owners find themselves in a situation wherein they were unable to repay because of various financial commitments and they resort to home refinancing.

Some people question the benefits of this method and the only way that a person can find out its utility is to use a refinancing home mortgage calculator.

Getting Maximum Benefits from Your Refinancing Home Mortgage Calculator

You should understand that the interest on refinancing home mortgage depends on various factors related to your decisions taken for the refinancing. The main reason for people to go in for refinancing is to reduce the interest rate. In addition to this, refinancing helps in clearing of other debts, mobilizing cash for investment or consumption that includes home improvements, increasing the time required for repayment and reduction in the monthly mortgage payments on a home loan.

During the tenure of your loan period, the interest rates on mortgages goes on changing since these rates are dependent on the various indices used to arrive at them. You can change over to a fixed rate mortgage by going in for refinancing and this will reduce the risk of paying higher interest due to dramatic increase in interest rates. However, the banks normally charge a premium for fixed interest rate loans; hence it is necessary to use a refinancing home mortgage calculator to find out the differences in the existing interest rate and the refinance interest rate and decide on the best.

The refinancing home mortgage calculator is readily available online and you can calculate the interest rate for refinancing in real time; this calculator is also very easy to use. In this, you have to enter the current mortgage payments and the loan amount, reason for taking the loan and the state in which the property is located and you will get the final result in a few seconds. Most people who are looking for home refinancing use a refinancing home mortgage calculator first to see the difference in the actual loan amounts payable with the refinancing and use this data to bargain with the banks to get the best possible interest rate.

Reverse Mortgage Step By Step Process

1. Do Research

Get information and contact reverse mortgage lenders in order to determine if a reverse mortgage is the right course of action for you. If necessary, ask your family members for advice on how to proceed.

2. Get Counseled

HUD insists, and requires, that you receive third party counseling from a HUD approved counselor. This counselor, is a third party, and ensures you understand your reverse mortgage options.

3. Application Phase

Begin, and complete, your application. Give all necessary information, and give as much information as possible. You can elect to receive payment in one of a few ways:

  • Lump sum
  • Monthly Payments
  • Line Of Credit
  • Any combination of the three above

4. Processing

Your application will be processed by your lender, who will then handle all forms of due diligence. That means getting an appraisal done, your title run, liens that need to be paid off, and in addition your credit report will be run by them – if needed. The appraiser determines the value of the home, and uncovers any issues that may prevent you from getting a loan.

5. Closing

After the loan is approved, the next step is signing everything. The loan interest rate is calculated, and all the closing costs are figured out. You are presented with the closing papers.

6. Disbursement Of Funds

After you sign all paperwork, you get three days – for buyers remorse – in order to cancel the loan if needed. Once that period is passed, the loan funds are disbursed. You begin to receive payments according to the payment option you had selected.

Refinance Mobile Home Mortgage: A Choice That Not Many People Are Aware Of

Most of the people know the existence of the refinancing home mortgage option; however, many are unaware of the existence of refinancing mobile home mortgage option which is quite useful. In case you already possess a manufactured home, you could consider taking the refinance mobile home mortgage option for any of your requirements. You must first of all understand the need for considering the option of refinancing.

Lower Rate of Interest

You might be able to enjoy the following benefits by going for refinance mobile home mortgage option.

  • Refinance mobile home mortgage option gets you loan at a reasonably low interest rate.
  • It gives you attractive loan terms.
  • It allows you consolidate all your debts and repay them with this loan.
  • Since the terms are attractive you may be able to increase your loan amount so that you could think of buying a bigger home.

The process of refinancing mobile home mortgage works as follows. Once you have decided on refinancing mobile home mortgage loan you should pay off your existing loan; then you should go for a new loan which is given by the banks at attractive low interest rates and also lower fees.

Since you are able to get attractive interest rate/ fees, it is possible for you to get larger loan which actually mean that you will have more cash on hand and this extra cash can be utilized for other purposes. You can also reduce the duration of your mortgage by taking refinance mobile home mortgage and this is because your monthly installment payment comes down due to low interest rate. You must realize that you are eligible for refinance mobile home mortgage irrespective of the fact that your mobile home is located either on public land or in a mobile home park. It is necessary for you understand the legal requirements in that state; you could also ask your lender on this issue. You must ensure that everything is done legally.

When you avail refinance mobile home mortgage loan you may have to pay pre-closing charges for your existing mortgage; these charges are normally added to the total cost of your loan or to the amount paid as up-front fees. In order to get the best deal for refinancing mobile home mortgage you should possess sufficient points that will help in getting lower interest rates.

You must understand that refinance mobile home mortgage is advantageous in case you are going to live in your mobile home for a longer period.

There are a number unfortunate people who are having poor credit rating and these people do not consider getting credit to purchase a home. You must realize that even people with bad credit are eligible for bad credit mobile home mortgage in spite of having a very low credit score. You should not get discouraged by having a credit score of less than six hundred and refrain from applying/ getting a mobile home mortgage. Only problem you will face in this case is to approach innumerable lenders to find out the one who is prepared to give you the loan. However, the loan will come at high interest rates.

 

Commercial Mortgage Loans

Commercial mortgage financial loans are supplied by loan companies for buying qualities and equipment, or meeting operating costs for commercial or business reasons. These financial loans will often have lower rates of interest (6% to 13%) than residential financial loans. Thus, commercial mortgage financial loans are thought as helpful tools for creating and enhancing a company. The primary receivers of business mortgage financial loans are really the estate businessmen involved in construction, acquisition and refinancing of qualities.

Commercial mortgage financial loans are guaranteed financial loans, that’s, you have to give a security, property or business resource, to get these financial loans. Like home mortgages, you need to pay back these financial loans inside a number of months. Usually, a couplePercent arrangement fee is billed of these financial loans. Commercial mortgage financial loans might be fixed or arms. The word of those financial loans can differ from 10 to 3 decades.

Commercial mortgage financial loans offer more flexible payment options than traditional financial loans. You are able to pay on the biweekly, monthly, quarterly or annual basis. Many loan companies provide a fixed interest only period. You are able to pay back commercial mortgage financial loans by producing additional funds from assets you bought while using loan.

Being approved for commercial mortgage financial loans could be a little difficult. The borrowed funds provider will consider the resale property’s value, the earnings produced in the property, your company’s credit rating and earnings assets, as well as the worthiness from the guarantor. The minimum amount borrowed readily available for commercial mortgage financial loans varies using the loan provider – it always falls approximately $100,000 and $250,000. The most available is generally limitless, however it exclusively is dependent on the need for the safety. Most loan companies provide 70% to 90% property’s value as maximum amount borrowed.

Many online mortgage companies offer commercial mortgage financial loans. Included in this are conduit loan companies, portfolio loan companies including banks, credit companies and life insurance coverage companies, government backed enterprise (GSE) and non-bank loan companies. Generally, conduit companies and credit and life insurance coverage companies offer long-term financial loans.

The relation to interest, rate of interest and also the minimum amount borrowed available defer using the loan provider. You will find many websites that offer comparison of rates of interest of various companies.

What is a Mortgage?

A mortgage is borrowing money using property as a security.

Primarily, the purpose in borrowing the money is to purchase a property. However, there are situations where additional capital may be raised on property already owned by way of a second mortgage or re-mortgage.

In a mortgage there are two parties – the borrower known as the mortgagor and the lender known as the mortgagee. The mortgage is created by a legal charge on the property and, significantly, does not involve the transfer of land. The charge confirms that the property has been pledged to the lender as security for the mortgage loan. The title deeds are held by the lender but when the purchase monies are paid over to the vendor (seller), usually through a solicitor or conveyancer, the mortgagor (borrower) becomes the owner of the property. The legal charge is supported by a loan agreement between the two parties which sets out the terms of the loan, the responsibilities and undertakings.

Second mortgages

As indicated earlier, a second mortgage may be created where there is equity in the property over and above the amount owed to the first lender. In times of property value inflation, there is frequently a situation where the current market value of the property has increased from the time it was purchased but the amount borrowed at the outset has remained the same (interest only mortgages) or even reduced (repayment mortgages) by capital repayments. The difference between the amount owed on the mortgage and the current market value is known as the equity. In times of property values falling there could arise a situation where the amount owed on mortgage is greater than the market value. This is known as negative equity.

The owner may borrow against the equity (frequently for home improvements such as extensions, conservatories, double glazing etc.) under a second mortgage and loan agreement with a completely different lender, often a finance company. The second lender notifies the first lender of the transaction but the title deeds remain with the original lender. In the event of the borrower being unable to meet his commitments and keep up repayments, the first lender has first call on the security of the property. It follows that the second lender sees his involvement as being at a higher risk and higher interest rates charged reflect this. In theory it is possible to have a second, third or subsequent mortgages, provided there is sufficient equity but in practice it is uncommon to have more than two charges.

Types of mortgages

Broadly speaking, all mortgages are either repayment mortgages or interest-only mortgages. However, there are various types of mortgages within these broad categories.

Repayment mortgages

  • Repayment mortgages – where capital is reduced by monthly payments
  • Flexible mortgages – usually tied to a bank account

Interest-only mortgages

  • Full endowment mortgages – the original endowment mortgage
  • Low cost endowment mortgages – the ‘popular’ endowment mortgage
  • Unit linked mortgages – premiums invested by a fund manager
  • ISA mortgages – premiums invested into an ISA (Individual Savings Account)
  • Pension linked mortgages – premiums invested into a pension fund
  • Home income plans – raising capital for the elderly or retired