Welcome to Mortgage Loans Guide
Ready Mortgage Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Reverse Mortgage Loans: Better than a Second Mortgage
from:There are so many different kinds of loans that it can be very hard to keep track of them all. Even with mortgage loans, there are so many different kinds. Take reverse mortgage loans, for instance. Most people don't even know that they exist. If they need extra money, they get a second mortgage or a home equity loan instead. While these are valid options, they do provide more of a risk. Well, reverse mortgage loans are similar because they use your existing equity to give you money. However, they are actually much better than what you would get with those other loans.
Reverse mortgages work a little differently. Instead of giving you a new loan like a second mortgage or a home equity would do, it really just gives you cash on the equity that you've built up on your home. Equity is the amount your home is worth beyond what you already owe. For instance, if you have a house that is worth $150,000 and you still owe $100,000 on the original loan, that means you have built up $50,000 in equity.
The big difference between reverse mortgage loans and other, similar loans is the repayment. With this federal loan, you don't have to repay it until you no longer live in that house. If you continue living in the house, you don't have to worry about paying it back. If you do sell your house, the portion that you received from reverse mortgage loans will be taken out of the money you get from the sale.
Not everyone can reap the benefits of reverse mortgage loans, though. Since this is a federal type of loan, they have very strict rules. For one, you need to be living in this house. It should be your main residence. It can also be either a single family home, or up to a four family residence. Finally, there is an age requirement. You need to be at least 62 years old in order to get one of these loans. These are the main rules regarding reverse mortgages. If you feel that you may qualify, it wouldn't hurt to give it a try. These loans are really much better than home equity or second mortgage loans.
There are many benefits to reverse mortgages that you don't get with the other loans. These are especially helpful if you plan to live in your house for an extended period of time, because you won't have to pay it off until you plan to move. This is one of the best mortgage loans out there and worth the trouble in order to receive it.
Ready Mortgage Loans News
Mercer: In Washington, experience is 'in' again - Milford Daily News
WASHINGTON President-elect Barack Obama's picks for his Cabinet are reassuring because they have Washington experience - unless they're disappointing for that very reason. It depends on where you're standing. Inside-the-Beltway types are relieved to ...
Read more...More cuts and cash to come - Sydney Morning Herald
THE Reserve Bank has not ruled out further rate cuts after it slashed 1 percentage point from borrowing costs yesterday, while the Government stands ready to rain more money on families. A household with a $400,000 mortgage will save $257 a month ...
Read more...Fed extends key credit programs through April 30 - Arlington Heights Daily Herald
WASHINGTON -- The Federal Reserve has extended the life of key programs aimed at busting through credit clogs and restoring stability to financial markets. The Fed said Tuesday that the programs, originally slated to last through Jan. 30, will be ...
Read more...Mortgage rates pull in borrowers - Raleigh News & Observer
Fed's pledge to buy up debt is 'wonderful gift' for Triangle lenders Many Triangle mortgage lenders were busier in the past two days than they've been in months. The flurry of activity was brought on by the 30-year fixed mortgage rate dropping to 5 ...
Read more...Wisconsin bankers say they’re ready to lend - Pierce County Herald
The head of the Wisconsin Bankers Association says most banks have lots of capital and are still eager to lend – even though one of every six lost money in the last quarter. The FDIC said Tuesday that 49 commercial and savings banks in Wisconsin ...
Read more...