Welcome to Mortgage Guide
Mortgage Deals 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.
Mortgage Deals News
Lenders cut rates with new buy to let mortgage deals - Property118
Lenders cut rates with new buy to let mortgage deals Property118 Meanwhile, lenders are flooding the market with new deals with low headline rates to lure borrowers to switch to them. Skipton Building Society has three new mortgages following strong demand from property investors, including a two-year fixed rate ... |
Today's Mortgage Rates for 5/23/12 - LoanSafe
 New Zealand Herald | Today's Mortgage Rates for 5/23/12 LoanSafe (LoanSafe.org) — Mortgage rates today have mostly went up at the top lenders according to this morning's research with only one decrease found under one home loan program. To search for the best mortgage deals in your area, please use our rate search ... Today's Mortgage Rates: Bank of America, KeyBank and Citibank Refinance Rates ... BNZ joins mortgage rate war Mortgage Rates Today: New Week, Same Lows at Bank of America |
CBA cuts rates on fixed rate mortgages - Sky News Australia
 BigPond News | CBA cuts rates on fixed rate mortgages Sky News Australia CBA cuts rates on fixed rate mortgages Updated: 13:57, Friday May 25, 2012 Commonwealth Bank of Australia has cut interest rates on some fixed rate home loans by up to 0.4 per cent. CBA on Friday said interest rates on two-year fixed rate residential ... CBA trims interest rates for fixed-rate mortgages Commbank drops rates by 0.4 per cent CBA cuts fixed loan interest rates |
Mortgage Rates Today: Wells Fargo, PNC Bank and KeyBank Refinance Rates for ... - Eastern Morning Herald
 World News Resource | Mortgage Rates Today: Wells Fargo, PNC Bank and KeyBank Refinance Rates for ... Eastern Morning Herald Today some rather mixed economic reports got released about the US economy, thus mortgage rates will likely stay at record-low levels or even improve a tad, as we are slowly approaching the weekend. This week's jobless claims report revealed, ... Latest mortgage rate deals Mortgage Rates Today: Slight Upticks at Bank of America Mortgage Rates Drop to New Record Low |
Fantastic Home Loans Mortgage Rates in New Zealand - PR Web (press release)
 PR Web (press release) | Fantastic Home Loans Mortgage Rates in New Zealand PR Web (press release) Fantastic Home Loans would like to provide you with an insight into what is happening with mortgage rates in the last week, as homeowners with mortgages or new home buyers are being advised to shop around now that competition among banks is heating up ... |