| Reverse Mortgage – Supercharge Your Retirement or Burn Your Assets
With a reverse mortgage the bank pays you for as long as you remain in your home. The loan never has to be paid back until the borrower moves or dies. Payback -- principal plus interest -- can never exceed the value of the home. But are Reverse Mortgages too good to be true? "For those age 62-plus, a reverse mortgage is a great way to augment retirement income. Affluent couples can use a reverse mortgage to pay for a vacation home and generate cash to accelerate gifting," says Paul J. Mauor, CLU, CHFC, founder and CEO of Legacy Financial Advisors, Inc., headquartered in Milford, MA. (PRWEB) September 25, 2006 -- Reverse Mortgages are getting a lot of attention, but are they too good to be true? For couples that want to stop making mortgage payments and get cash for retirement, a reverse mortgage can be ideal.
Analysts predict wave of home refinancing
The economic stimulus plan agreed on Thursday could unleash a wave of mortgage refinancing that would amplify the effect of the Federal Reserve's 75 basis-point interest rate cut this week, according to analysts. While the Fed has cut rates aggressively, until now a large number of homeowners and would-be buyers have not been able to take advantage of the lower interest rates, because of high spreads in the dysfunctional secondary market for jumbo (large denomination) loans. Under the plan, the so-called conforming loan limit would be expanded for the two government-sponsored enterprises to 125 per cent of area median sales price up to a maximum of $729,750, from a current $417,000. Now more homeowners will be able to refinance or take out new mortgages in the functioning segment of the market that “conforms" to Fannie and Freddie rules.
Low Interest Rates Spur Mortgage Refinancing
Homes sales may get a boost when the fed's recent interest rate drop translates into mortgage rates. The cut will make it easier for many people to get into a new home and will also enable people to refinance to avoid future hardship. Several loan officers and mortgage lenders all say the same thing -- now is the time to refinance your home. But before you do, consumers need to understand the process is not cut and dry. Loan officers around the valley say more and more homeowners need to look into refinancing to take advantage of the low interest rate. Different loans can either lower your monthly payment or even shorter your term But it's not that simple. In order to refinance, you have to have decent credit and have some equity built up in your home.
Thomas D. Elias: Making hay off the misery of others
There's a case to be made for a governor flitting about from one disaster scene to another, as Gov. Arnold Schwarzenegger did constantly during the fall fire season, in the interests of building morale.
But there's a point where it becomes grandstanding, trying to make hay and boost a political image by taking advantage of the misery of others.
Schwarzenegger appeared last fall to have little idea of the boundaries between the two phenomena. And he did it again just as this month began, trumpeting through press releases picked up in all major California media that he had "worked with loan services from (four major mortgage lenders) to streamline 'fast-track' procedures to keep...subprime borrowers in their homes."
A week or so later, President Bush did much the same thing, plumping for an interest rate freeze.
Montana escapes subprime meltdown
Thousands of people at risk of losing their homes. Mortgage lenders going out of business. Home sales slumping. Such is the nationwide fallout from the subprime mortgage market meltdown. But here in Montana, and particularly Gallatin County and the surrounding area, the good news might be that there is no news.The financial crisis that hit states such as California hasn't had much of a visible impact on the local housing market. The number of local foreclosures is low and consistent with what the area has seen in recent years, and local lenders say many people can still qualify for home loans at reasonable interest rates.“The fallout of the subprime market has not truly had much of an affect on my clientele or my community," said Cyndy Rigler of the Livingston-based Western Home Mortgage.Subprime mortgages have never been a big part of what Western Home Mortgage does.
Do homework for best loan
The right home loan could save you thousands Do your homework and work out what features you want Consider flexibility and charges THE perfect home loan could save you thousands of dollars, be used to create significant personal wealth, or have you owning your home sooner. But the first step in finding the perfect loan is preparation, according to industry experts. "The first thing is do your homework and decide what sort of loan is suitable for you because you're likely to have this loan for 25 or 30 years,'' Community CPS Australia chief executive Kevin Benger said. Some things to consider include whether you want a fixed or variable interest rate or a mixture of both, ensuring you are aware of all fees and charges associated with the loan, and whether you could make additional repayments.
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