Welcome to Mortgage Guide
Interest Only Mortgage Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Is A Reverse Mortgage Right For You?
from:A reverse mortgage is the exact opposite of a traditional mortgage. Instead of you paying the bank to live in the house, the bank pays you to live in it. This may seem a bad deal for the bank, but there are a lot of reasons why a bank will allow a reverse mortgage. Typically a reverse mortgage is only approved for someone 62 or more years of age that has paid off his or her original mortgage. With all that equity in the home, the senior sitting in it might want to stay in the home but face additional expenses in medical or living costs that they can’t cover. Instead of selling the home and downsizing, they may choose to do a reverse mortgage with a bank instead thus allowing them to remain in the home.
How It Works
The reverse mortgage is a little more complex to close than a traditional mortgage. There are a number of different rules surrounding this type of mortgage loan. The age limit is one barrier and also the condition of the home may be another. The home has to be in good condition, free of major faults, before the bank considers doing this type of mortgage. Closing costs are significantly higher than the traditional loans and fees can also eat into equity. However, the upside is that you can get a disbursement of cash to help you pay immediate expenses while not having to vacate your home. This cash can come as a lump sum, a monthly payment, or even a credit line. The terms of the loan may differ with the bank involved and you should check to see what happens if you eventually sell the home instead of staying in it until you die.
The Potential Negatives
Seniors are targeted by unscrupulous lenders with predatory lending practices that can include a high fee reverse mortgage. Most lenders will be asked to undergo counseling before they take out a reverse mortgage, but that might not be enough to assess whether the mortgage is what you need at this point in your life. As always, if you aren’t certain of what you are signing, don’t sign. Instead, try to review the documents with someone who is knowledgeable and can answer any questions you might have about this type of mortgage. There are some downsides to a reverse mortgage. They can impact your ability to receive Medicaid benefits and government financial assistance. So, be sure to not only look at the terms of the mortgage but also check with your local government offices to see if the mortgage product might actually reduce your income instead of increasing it, due to the offset of benefits.
Interest Only Mortgage News
FSA rules out ban on interest-only mortgages - Finance Markets
 Finance Markets | FSA rules out ban on interest-only mortgages Finance Markets Speculation that the Financial Services Authority would ban interest-only mortgages as part of its Mortgage Market Review has proved to be unfounded. However, lenders will be required to monitor the performance of the investment product taken out by ... FSA: MMR will not ban interest-only mortgages Churchill's Column: The interest only debate FSA denies interest-only ban |
Arizonans sue to block mortgage fund raid - Yuma Sun
 Arizona Capitol Times | Arizonans sue to block mortgage fund raid Yuma Sun Tim Hogan of the Center for Law in the Public Interest said the state was given $97 million as part of a nationwide settlement of a mortgage fraud claim against five major lenders. He said the part of the deal signed by Attorney General Tom Horne ... Foreclosure-prevention efforts bog down Georgia – No Plans To Help Homeowners |
New York Mortgage Trust Announces Public Offering of Common Stock - MarketWatch (press release)
New York Mortgage Trust Announces Public Offering of Common Stock MarketWatch (press release) The Company invests in mortgage-related and financial assets and targets multi-family CMBS and Agency RMBS, including Agency RMBS consisting of adjustable-rate and hybrid adjustable-rate RMBS and Agency IOs consisting of interest only and inverse ... New York Mortgage Trust Arranges Long Term Financing Secured by Multifamily ... |
New Callcredit white paper explores the interest only mortgage 'timebomb' - Creditman
New Callcredit white paper explores the interest only mortgage 'timebomb' Creditman Lenders should take proactive steps to engage with borrowers who are facing an interest-only mortgage 'timebomb', according to a new white paper from Callcredit Information Group. The white paper – Interest Only Residential Mortgages: What happens when ... |
Mortgage comparison-shopping: How to read good faith estimate - Community Voice
 Mortgage Rates & Trends | Mortgage comparison-shopping: How to read good faith estimate Community Voice The initial amount is also subject to change on refinance because the payoff amount can only be estimated upfront. Your mortgage loan term is the term of the mortgage; ie 30-year fixed, 15-year fixed, etc. The initial interest rate can be the interest ... Bankrate: Mortgage Rates Hold at Record Lows Look Before You Leap Into Jumbo ARMs European Strife Gives America Life |