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What is a reverse mortgage?

Reverse mortgages as its name indicates operates in a manner opposite to that of the typical mortgage such as a home loan. In a typical mortgage, you borrow money in lump-sum right at the beginning and then pay it back over a period of time.


Reverse Mortgage

In your payback — the EMI — a portion goes towards paying the interest and the remaining goes towards paying back principal. All along, you pledge the asset — namely the home you have bought with the loan — to the bank. This asset is the security against which the bank is lending to you. In reverse mortgage, you pledge a property you already own (with no existing loan outstanding against it). The bank in turn gives you a series of cash-flows for a fixed tenure. These can be thought of as reverse EMIs.

NHA Housing Loan

There are various forms of reverse mortgage available in the developed countries. The specific format National Housing Board (the facilitator for housing finance in India) is promoting is one in which the tenure is 15 years and the owner of the house and his/her spouse continue to live in the house till their death — which can occur later than the tenure of the reverse mortgage. Should I Refinance Home

The IMPORTANT POINT is — how much of an annuity income can my house generate using reverse mortgage? The banks have so far not indicated which interest rates they will use to determine the EMI — however, we can safely assume that it will not exceed the interest rates used for loan against property — which is currently in the region of 12-14%.REVERSE MORTGAGE: Reverse mortgage as its na…

Basic Steps to Refinance Your Mortgage

Refinancing is when you get a loan (secured) to pay down an old loan. In this case, “mortgage refinancing” thus meaning to pay off your old mortgage.
This most often happens to get a lower rate of interest or to get some cash out to do other things with from the equity your home provides. There are a few steps that one goes through during the mortgage refinancing process.

  1. You obtain and then complete the loan application that is in front of you.
  2. You then are presented with loan offers from the loan consultant.
  3. Once you choose what one you will go for, there will be some documentation that will be needed to start it.
  4. After a brief period of time you will receive the various disclosures (legal information, terms etc) to which if your in agreement, you sign and return them to your loan consultant.
  5. Upon the loan consultant receiving this information he or she will set up an appraisal company to contact you about appraising the value of your home. This must be done so that the loan is secured against the predetermined value of your home.
  6. You sit back a little, as your loan consultant does the work to order the payoff of your old loan with the new one and a title search and processes the loan file.
  7. The underwriters then obtain the information from the loan consultant and either approve it or request any additional information they may need. If they need more information, they will get a hold of your loan consultant to get in contact with you. Then if all goes well, the final approval is given and a closing date is scheduled.
  8. The final document is sent off to the title company, notary public, or lawyer who is closing it. You then sign any final documents, provide id, etc.
  9. During the next three days, you have the right to cancel your new loan agreement.
  10. The mortgage refinance process is completed and you have successfully refinanced your mortgage.HOW TO REFINANCE UR MORTGAGE : Refinancing…

Reverse Mortgage in simple terms

A reverse mortgage is a loan that’s taken out based on your home’s equity. It’s different from a home equity loan because there are no credit checks or income requirements. Additionally, you don’t have to make payments on a reverse mortgage the way you make payments on a home equity loan. You might think of a reverse mortgage as a home equity loan, without the payments and check – simply a loan that’s made based on the equity you have in your home.

Bad Credit HomeLoans

When you have bad credit, you will usually have some problems with getting a new loan, any kind of loan. This will be particularly true of you are trying to get a home mortgage or any sort of refinancing. This becomes incredibly troublesome once your bad credit score comes into play. However, there is still hope for you. There are many bad credit homeloans out there that you can avail of.

Here are some suggestions.

1) Megatron BAnk Lending

This lending firm helps you get a new loan in no time. The rates are incredibly competitive and your loan fees are manageable. They don’t give away the money just like that however, they also want to make sure you are able to pay for your loans in good time. Make sure you have a job before you go to them. Make sure you have some income and can support yourself after you have taken out the loan so you don’t cause headaches for you and other people later on.

Loan Modification Denied

QUESTION

I’m looking for some guidance. I live in Texas and I fell behind on my Mortgage back in November 09 due to medical issues. In January of 2010 I attempted to make two payments, which my mortgage company rejected. Once I learned of the rejection, I called hoping to set up a repayment plan. I was told that they could set up a repayment agreement but that I should apply for a modification under OBAMA’s Home Affordable Program first. Although this wasn’t my original intent, I submitted the requested forms and documents the next day, January 29, 2010 (based on their suggestion). I called back a week later just to be sure everthing was on track and requested a repayment arragement while the Mod was being reviewed. I was told that I could not be set up on a repayment plan, because my loan was being considered for Modificaiton. I called once or twice a week, with the same reponse, “no decision has been made”. Finally on March 6th I was informed after calling in that the mod was denied Back in early Feburary and that my home was now in forclousre with a April 6th sale date. I have not received anything in writing, I just learned of it during one my weekly calls, weeks after the denial. I am confused as to how it got to this point. I just wanted to set up a repayment plan. Besides paying the $10,000 plus now due to reinstate the loan, is there anything I can do?

ANSWER
A repayment plan will only be given to you after your loan is modified. The lender may reduce your interest and give you a new payment plan in order to clear off the mortgage dues. As the modification was denied, you did not receive a repayment plan from the lender. You need to contact your lender and once again reapply for the loan modification and check if the lender agrees to it.

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Read the news carefully today. You never know what you're gonna get. For recommended reading materials on mortgages and refinance aspects and how to fix your deeds or just plain news on real estate, check out the new york times online. It's a very good source of information.