Home mortgages right now are so crazy. What should we do about them? All of a sudden, the Rich Dad Poor Dad thinking doesn’t seem so smart.

Continue reading Home Mortgage Rant

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…

When the easy money was flowing, you could get a great deal on a mortgage from just about anyone. But in today’s credit-challenged world, all the avenues for finding a mortgage come with their own set of problems. Many banks have tightened lending standards and scaled back offerings. Some banks are no longer working with mortgage brokers, who are under fire for pushing bad loans during the boom. And while online lending sites hold the promise of one-stop shopping, some have developed a reputation for playing bait-and-switch on rates and not fully disclosing fees. All this adds up to a major shopping hassle. If you want to get the best rate, you’ll need to tap at least two of the sources below.

Continue reading Best ways to find a home loan

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…

We have a mortgage for 10 years. It’s really hurting us. What can we do about it? We live on a very quiet neighborhood. We took out a home loan with a very optimistic term. Since we have very short terms, our the interest rates on our mortgage is quite low while our repayments are really high. We are considering to go for a refinancing scheme to avail of some lower interest rates but what can we do to make sure that this won’t hurt us in the long run?

Continue reading Should we go and Refinance our Home Loan?