What is a Reverse Mortgage?
February 29, 2008
Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment. More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies. Since this is a new product, some people have misconceptions of what a reverse mortgage is. The bank doesn’t give you money and take your house. Let’s look at some of the most common questions.
Are reverse mortgages for desperate people? No. It is an excellent financial planning tool used from people of all walks of life.
How do I qualify? You must be 62 or if both parties are on the mortgage, then you both must be at least 62. And, you must have equity in your home.
What if I still owe on my home? You may still qualify even if you have a balance on your first mortgage. The proceeds must be used to pay off the mortgage, first.
Repayment Remortgages is The Cure For Outdated Endowment Policy
February 29, 2008
If bulls and the bears of the stock market have no effect on your mortgage plan then you must apply for endowment to repayment remortgage. An endowment mortgage is a financial product offered mainly in the UK. Endowment mortgage comprise of an interest only loan secured on your mortgage and an investment in the stock market. As against an ordinary repayment mortgage, the customer pays only the interest on the capital. The balance goes into the endowment fund. This stock oriented mortgage policy was workable in the context of stock boom of the 1980s and 1990s. At the end of the mortgage term, it seemed plausible that the investment would pay off the capital. But present day market status is unreliable and fails to make endowment mortgage a much sorted out plan. In recent years it is appropriate to revolutionize your endowment mortgage to repayment remortgage.
Remortgage is highly misunderstood for over the time we grow too comfortable in our mortgage policy. Holders of endowment mortgage are urged take up repayment remortgage so as to forestall the risk of being in huge debts once your mortgage matures. This you might shun as a possibility. But it is a very functional possibility. Why remortgage? If that is your query! Then you need to read more about your endowment mortgage. Repayment remortgage is very essential because endowment remortgage suffers from two major problems ? shortfall and mis-selling.
Credit Report Disaster Through Mistaken Identity
February 28, 2008
I’ve got some very important info I want you to think very seriously about. I’m sure by now you’ve heard of Identity Theft,…heck you may have even been affected by it. I know many of my friends have.
But how about what may potentially be even a more dangerous threat…….”Mistaken Identity”. That’s right, “Mistaken Identity”! Throughout my career in lending, the absolute biggest problem that I’ve seen clients encounter when applying for a loan, is someone else’s derogatory information showing up on their credit report!
You would not believe the nightmare I’ve seen clients go through, when they realized someone else’s bad credit history was showing up on their report, causing them to be declined for the loan the should have easily qualified for. Little did they know that everytime someone on the other side of town made a late payment, or decided not to pay at all, it was being added to their credit report.
Fast Cash Now Easier Than Ever, but at a Price?
February 27, 2008
Because of the Internet, quick payday loans are faster than ever before. Quick payday loans will really get you out of a fix, because quick payday loans arrive the next day, right at your doorstep, in amounts ranging from five hundred dollars to three thousand dollars.
Quick payday loans are also known as cash advances, payroll advances, check cashing services and more. Quick payday loans are available in person at businesses located at most cities and urban centers, but online truly seems like the way to go. For the best quick payday loans, find websites that you can trust. Finding a quick payday loans website that you can trust requires a bit of research if you have time. Be vigilant in your research. Quick payday loans sites ought to have a readily available FAQ, or frequently asked questions page that is easy to understand.
If you have any questions about your quick payday loans, or don’t understand some of the jargon associated with quick payday loans, contact the company before signing on the dotted line so to speak. While quick payday loans can be a blessing, they will quickly turn into a curse if you are not thorough in researching the quick payday loans pros and cons.
Option ARM Mortgage Loan - Is This Really for You?
February 26, 2008
What happened to the days of a 15 or 30 year fixed rate mortgage loan? Ultimately this is the safest and most popular mortgage loan product in our industry, but new mortgage products are hitting the market, and we in the mortgage business are using them to our advantage; ever heard the radio advertisement saying, "buy a $200K home for $643.28 per month; call XYZ Mortgage Company to apply"? The product used in this ad is called an Option ARM, and I feel it’s my duty as a mortgage professional to tell you what this product is in case you happen to meet up with that loan officer whose only concern is to make a fee, and not have your best interest in mind.
Here’s how this program works: when you pay your mortgage back you’re given 4 monthly payment options. Here are the 4 options:
1. Year 1 minimum monthly payment = your principle and interest payment calculated at a 1.00% rate with a fully indexed rate of roughly 5.00% (the other 4% gets tacked on to the principle making your balance go up with each payment you make). Example: $200,000 @ 1.00% interest = $643.28 per month.
Budgets And Eating - Can They Co-Exist?
February 25, 2008
Whatever your reason for having a tight budget, the truth is that going to the grocery store without a plan is a BIG budget breaker. And sadly all that cash ends up vanishing into our stomachs and then…well, you know what comes next.
But if you only had $300 a month to spend on groceries for a family of four, could you do it? What sort of food would make the list and what would stay tauntingly on the store’s shelves?
Could you save $25 a month on groceries? How about $50 or $100? Possibly you could cut your bill by almost 50% if you consider some of the following suggestions:
First you must divide the budget you have into three categories; weekly, bi-weekly and monthly. Once you have the totals fixed, try to find a way to make it work. If you budgeted too tight, only then consider how much more you really need to spend.
Second, identify your WEEKLY needs; milk, bread, fruits. These will be your saving graces when the troops are hungry. You can load up every week and always have a healthy snack available. Think about $15/week.
Building Your Credit History
February 24, 2008
Today, credit is an indispensable part of our lives. In order to get the things you need, such as a home or a car, you have to apply for a credit. But you cannot get a credit without having a credit history, and you cannot get a good quality credit without having a good credit history. So, it is important to start building your credit history when you’re young.
When applying for a credit, if you don’t have a credit history, it is possible your credit application to be denied. This means you definitely need to start building a credit history. There are different ways to start a credit history. If you’re a student, you can get a student card from the companies that offer such special cards. On this credit card you can charge your necessities and at the same time build your own credit history.
Military Payday Loans ? When?s The Best Time To Avail Of These?
February 24, 2008
What are the opportune times to avail of military payday loans? The best time to take out military payday loans are when you find yourself temporarily short of funds and see the loan as a temporary measure to tide you over until your next pay check.
Other such situations where you find yourself financially strapped are the following:
1.You’ve had to pay for a sudden expenditure not covered by your monthly budget.
2.You’ve got multiple bills due, and your paycheck won’t cover for it.
3.you may have emergency medical needs and it can’t wait until a later date.
Some facts you’ll need to know, if you plan to avail of military payday loans.
To pre-qualify for a military payday loan: You can be retired for the service, but if you are in active duty, you’ll need to have been employed for at least three months.
Most minimum requirements with regards to your ability to pay back the loan is that your pay check is at least $1000.00 a month and you have an active checking account. The loaned amount is usually deposited into this checking account and depending on your preference, the notice is emailed or you get a phone call.
The Truth behind Pension Mortgages
February 23, 2008
A pension mortgage may seem lucrative at the first sight. However, they seldom are, if the customers who took pension mortgage are to be believed.
Nevertheless, before delving into the ill consequences of the mortgage, let us observe why pension mortgages seem lucrative. The most eye-catching feature of pension mortgages, which lures people, is that the pension mortgage requires to be paid out of the pension amount, which one receives on retirement. This is the feature, which drives people to go for pension mortgages.
While in most of the mortgages, the customer would have to pay the full repayment amount himself; in pension mortgage, he gets assistance from the government, though not directly. To every 78p, which a person contributes to the pension fund, the government contributes 22p (This is for a basic rate taxpayer. In case of those who are high rate taxpayers, the ratio changes to 60:40. This means that for every 60p contributed by the customer, governments share is 40p). Therefore, a customer is actually paying just 78 and 60 percent respectively. Besides, the customer is also getting tax relief for paying into the pension plan.
Flexible Mortgages - Offering Relief from the Fixed Mortgage
February 22, 2008
A pension mortgage may seem lucrative at the first sight. However, they seldom are, if the customers who took pension mortgage are to be believed.
Nevertheless, before delving into the ill consequences of the mortgage, let us observe why pension mortgages seem lucrative. The most eye-catching feature of pension mortgages, which lures people, is that the pension mortgage requires to be paid out of the pension amount, which one receives on retirement. This is the feature, which drives people to go for pension mortgages.
While in most of the mortgages, the customer would have to pay the full repayment amount himself; in pension mortgage, he gets assistance from the government, though not directly. To every 78p, which a person contributes to the pension fund, the government contributes 22p (This is for a basic rate taxpayer. In case of those who are high rate taxpayers, the ratio changes to 60:40. This means that for every 60p contributed by the customer, governments share is 40p). Therefore, a customer is actually paying just 78 and 60 percent respectively. Besides, the customer is also getting tax relief for paying into the pension plan.
