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Reverse Mortgage Service
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Refinance a Mortgage After Bankruptcy
If you are looking to rebuild your credit after bankruptcy, an Illinois mortgage refinance can help. But making the decision to refinance can be tough. There are a lot of considerations that should factor into your decision.
Timing
A bankruptcy can have a negative effect on your credit rating. In most cases, bad credit will not stop you from getting an Illinois mortgage refin... Read mortgage refinance article
Rebuilding Credit to Get a Post-Bankruptcy Mortgage Refinance
Nationally, credit scores average somewhere between 600 and 800. In Hawaii, the average credit score is 688. If you have recently filed bankruptcy, your FICO score probably falls somewhere below 600, and maybe even below 500.
Though you can get a post-bankruptcy Hawaii mortgage refinance with your current score, you may want to try rebuilding your credit before refinancing to make sure ... Read mortgage refinance article
Reverse Mortgage Service
A reverse mortgage, as its name says, is a loan wherein the lender pays the borrower instead of the usual setup where the borrower pays the lender as done in traditional regular mortgages. To be exact, a reverse mortgage is a home equity loan that allows you to transform some of the equity in your home into cash while you continue to hold the ownership of your house.
To find out the equity of your home, it is necessary for you to calculate the difference between the appraised value of your home and your outstanding mortgage balance. As your outstanding balance shrinks and/or property value grows, the equity of your home increases and vice versa. Reverse mortgage, therefore, is borrowing money relative to the amount of equity in your home.
Unlike conventional home equity loans, most reverse mortgages do not require you to pay principal interests and other fees as long as you reside in your house. There is no restriction as to the use of your loaned cash from a converted equity. The money can be used for anything like education, travel, credit card debt etc. The lender could request that you pay a part of your converted equity to pay off the balance of an existing mortgage.
Reverse mortgages are rising-debt loans. This means that unlike regular mortgages where the borrower lowers his/her debt as he/she pays the lender, reverse mortgages increases your debt as lender gives you more money. Since you retain the title of your house, it is still your responsibility to pay for its maintenance, taxes, etc.
Reverse mortgages are not suited for everybody. Those who usually avail of this are people who are "house rich" but are "cash poor". In order to avail of a reverse mortgage, first, you must own a house. Second, you must be at least 60 years old. Others allow only those who are at least 70 years old and have a low income. Third, you must be currently residing in your home and must have stayed there for a minimum of half a year. Most reverse mortgages convert equities of homes that are single-family units only, 1-to-4 unit building or a federally-approved condominium. If your equity is not large enough to pay off balance of your current mortgage, then, you are not qualified to get a reverse mortgage. Most reverse mortgages allow only those who have paid existing debt. If you qualified for a reverse mortgage for purposes of house repair, the cash that will be gained must only be used for this purpose.
One possible risk of acquiring reverse mortgages is that the interest is compounded. This means that you are paying interest for both the principal and the interest which has already accrued each month. It is safe to say that you must not borrow more than you need since most of your converted equity will only be used to pay off your compounded interests.
Despite these risks, reverse mortgages can be beneficial especially to senior citizens who find themselves with a highly valuable home but without cash. One benefit is that your debt can never exceed the value of your home. You can use the converted equity to pay previous home debt. You will be guaranteed with a monthly income without the need to make payments for as long as you live in the house.
Again, before you commit to a reverse mortgage, please do your research or consult specialists to help you weigh the benefits and disadvantages of such a mortgage.
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Mortgage Broker versus Mortgage Banker
Many consumers think that "mortgage companies" are banks that lend their own money as mortgage. But in fact, any company that you deal with might be either a mortgage banker or may be a mortgage broker.
Mortgage Banker: A mortgage banker is a direct lender, which lends you its own money, although it may often sells the loan to the secondary market. Mortgage bankers (otherwise known as "direct lenders") sometimes keep servicing.
Mortgage broker: A mortgage broker is actually a middlemen; he first does the loan shopping and analysis for the borrower and then puts the lender and borrower together. Most of the lenders by which the broker finds loans do not deal directly with public.
If you go through mortgage banker, you would save the fees of middleman and could make the loan process quite easier. A mortgage banker would give you direct approval of loan, whereas a mortgage broker gives you information second-hand. But anyhow, many mortgage bankers have their own limitation in what they can offer. An in case, if you present your loan application in poor light, it would lead to a bad impression in front of banker. It is not suggested to lie or mislead a lender, but one need to understand that presenting a loan to a lender is just like presenting your taxes to the IRS; all documents should be valid one.
A mortgage broker charges dramatic fee for every service, but then he has access to wide variety of loan programs. He would also have knowledge of how to present your loan application to various lenders for approval. Some of mortgage bankers are brokers as well. As an investor it is always wise to have both mortgage broker and a mortgage banker on your side. You all need to remember that mortgage brokering is an unlicensed profession in many of the states.
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Why, I hear you ask, would you need to refinance, what are the benefits and advantages of it? Well lets take the most simple way to look at it. Imagine you purcha... Read mortgage refinance article
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Reverse Mortgage Service
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