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A Reverse Mortgage For Your San Diego Property

By: Terry Parker

If you have a San Diego property, and are sixty two years of age or older, you may be a good candidate for a Reverse Mortgage. A Reverse Mortgage is different from a traditional mortgage loan in that it does not need to be repaid as long as you live in the home. With a Reverse Mortgage, you can use the value, or equity, or your home as a way to get cash, through several dispersal methods. These include receiving the cash all at once, in a single lump sum payment, in regular monthly installments, as a credit line and as a combination of these methods.

Qualifying for a Reverse Mortgage in San Diego does not require the borrower to meet a set monthly income minimum, as is the case with more traditional types of home loans. This is because again, no monthly repayments are required as long as you live in the home. Homes eligible include single family dwellings or two to four unit properties that are owned and occupied by the borrower. In addition, townhouses, detached homes, and n some cases, manufactured homes are also eligible, and it is possible for individual condominiums to qualify under this type of loan as well.

Seniors may be concerned that their home will be taken from them if they outlive the life of their loan, or that if they opt for a reverse mortgage, they will not be able to pass their property on to their chosen beneficiaries. In actuality, as long as you or one of the borrowers lives in the house and keeps the home owners insurance and taxes paid and up to date, the reverse mortgage does not need to be repaid, and you will never owe more than the value of your hone.

When you decide to sell your home, or when it is no longer being used for your primary residence, either you or your estate will repay the amount that you received from your reverse mortgage, leaving the remaining equity to you, or your heirs.

With a Reverse Mortgage, as with any type of loan, there are certain risks and requirements that you should be aware of, and these may vary slightly both by state and region. Your San Diego mortgage lender should be the first person whom you consult, and will be able to give you individualized advice and information to help you determine whether a reverse mortgage is right for you.

Author Resource: To learn more about your next San Diego Reverse Mortgage visit our website.

Article From RealEstateArticles4U.com

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10 Facts about Reverse Mortgages

By: Christine Harrell

Reverse mortgages are more popular than ever among those aged 62 and over.

In fact, the number of Reverse Mortgages issued doubled between 2003 and 2005 yet many people still either haven’t heard of reverse mortgages or aren’t quite sure about how they work to relieve the financial pressure of the retirement years. If you’re in or entering your retirement years or have aging parents that need financial assistance, you’ll want to know more about this very unique financial product.

What are reverse mortgages?

These mortgages aren’t like traditional home equity loans where homeowners borrow against the equity in their home and pay a balance back each month. Though reverse mortgages unlock the equity in their homes, there is no amount to pay back each month. Instead, the amount issued to the homeowner isn’t owed until the home is sold or until the death of the homeowner.

Who qualifies for reverse mortgages?

RMs are available to those aged 62 and older. Some types of government backed mortgages require that applicants have an income below a certain level. However, privately funded reverse mortgages don’t often impose income restrictions.

I’m over 62 but my spouse is not. Do we qualify for a reverse mortgage?

In order to qualify for reverse mortgages, both applicant and spouse must be 62 or older. The age requirement is applicable to only those on the title of the home. If only one spouse is on the home’s title, then the age of the other spouse is irrelevant.

Can the equity from reverse mortgages be used for any purpose?

Propriety or non-government reverse mortgages can be used for any purpose. Whether to travel, pay medical bills, or just to increase monthly cash flow, it’s up to the homeowner to decide what to do with their earned equity. However, the money received from government insured single purpose reverse mortgages is limited to paying for specific items such as home repairs or taxes.

Does getting a reverse mortgage require a credit check?

No. Since RMs are not loans, there is no need for a credit check.

How are the payments from reverse mortgages issued?
Homeowners can choose either to receive a lump sum payment for the amount they qualify for, or to receive monthly payments, referred to as tenure. While a lump sum payment gives you the advantage of having all of the funds at your disposal to use as you wish, with monthly payments the remaining balance can earn interest until it is dispersed. For homeowners that prefer the benefit of both a lump sum payment and monthly payments, there is also modified tenure that combines the two options.

Do I have to pay taxes on money received from reverse mortgages?
No. Unlike home equity loans, the money received from RMs isn’t considered a payment; it’s your own money, not additional taxable income.

With the funds received from a reverse mortgage affect my government benefits?
This depends on how you choose to have the money issued and how you use the money. Since the money is not considered income receiving monthly payments from RMs does not affect government benefits such as SSI or Medicare. However, if you choose to take a lump sum payment, any amount remaining one month after receiving the money can be considered a resource and can affect your benefits.

I own more than one home. Can I get reverse mortgages on all of the homes that I own?
No, a RM can be taken only for your primary residence. The types of primary residences that apply are single family homes and qualified town homes, condominiums, and manufactured homes.

Do I have to own my home outright in order to qualify for a reverse mortgage?
RMs are available even for those that owe money on their homes. However, you’ll need to use the money from the RM to pay off the outstanding debt. So while you may not receive a lump sum payment or extra money each month from the reverse mortgage, you can eliminate your monthly mortgage payment to increase monthly cash flow.

Before taking out a reverse mortgage, be sure to speak with a loan counselor who can help you to better understand how the details of a mortgage of this type apply to your particular situation. Reverse mortgages are a great option for seniors who have worked hard to build equity in their homes and need extra income after leaving the job or who just want to enjoy their retirement years.

Author Resource: Christine Harrell is a freelance copywriter. For more information on reverse mortgages or California mortgages, visit www.AmeritekMortgage.com.

Article From RealEstateArticles4U.com

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Options to Finance your New Home

By: Joseph Kenny

Are you feeling overwhelmed with the sheer number of different types of mortgage loans?

Not sure which one will work best for your situation and needs? Read on for tips to help you compare the advantages and disadvantages to the most common types of mortgage loans.

First, it is important to understand the difference between a variable or adjustable interest rate mortgage and a fixed rate mortgage.

• With a fixed rate mortgage you gain the advantage of monthly mortgage payments that do not change; however, your interest rate may be slightly higher than what is offered with an ARM.
• With an adjustable rate mortgage while you will typically have a lower introductory interest rate, that rate may fluctuate over the duration of your loan. This can mean your monthly mortgage payments may become higher or lower, depending on whether interest rates are raised or lowered.

Beyond adjustable rate mortgages and fixed rate mortgages you also have other options in terms of how long you finance your home. The most common terms are 15, 25, 30, 40 and now even 50 year mortgages in some areas. Keep in mind the longer you finance your mortgage the less your payments will be per month, but the more you will pay in interest over the duration of the loan.

There are also special types of loans offered which may offer certain advantages. These types of mortgages include FHA, VA home loans, Balloon Loans and Hybrid Loans.

FHA Home Loan

A FHA home loan is often attractive to first time home buyers because it allows the purchase of a home with a lower down payment, in some cases as low as 3%. There are certain qualification regulations in order to be approved for a FHA home loan; however. You must have good credit history and enough income to cover the loan and your other financial obligations. Typically, all of your housing costs each month, including house note, property taxes and insurance cannot exceed 29% of your gross monthly income. In addition, your housing costs plus your other monthly long-term debt should not exceed 41% of your gross monthly income.

VA Loans

VA loans are made available to veterans of the U.S. armed services for the purchase of homes. With this type of loan you can purchase a single family home, condo, new construction or even a manufactured home. You should be aware that you’ll usually need to pay a 2% fee when the loan is closed. One of the best advantages to this type of loan is that 100% financing is available. In addition, you don’t have to worry about private mortgage insurance, which is required in certain cases when you are financing more than 80% of the home’s value. You may also be able to take advantage of a competitive interest rate.

Balloon Mortgage

With a balloon mortgage you may be able to lower your monthly payments by agreeing to pay a portion of the mortgage in a lump sum at the end of the mortgage. The disadvantage to this is that you will have to come up with the money or try to extend the loan; which may or may not be available.

Hybrid Loan

With a hybrid loan you can sometimes take advantage of a lower interest rate in the beginning of your mortgage, perhaps for three to five years, when you may be struggling more to make the payments. After this time period has passed, the interest rate will rise and you will be responsible for a higher monthly mortgage.

Author Resource: Joe Kenny writes for the Credit Card Guide, offering views on credit cards in the UK, visit them today for some great 0% balance transfer offers and start clearing credit card debt today.

Article From RealEstateArticles4U.com

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Mobile Home Refinancing

By: Andrew Bicknell

For mobile home owners the thought of refinancing does not normally cross their minds. While they may have some sort of financing in place, usually through the manufacturer or mobile home park in which they live, many do not realize that they can refinance their current loan much the same way as they would if they owned a conventionally built house.

Many lenders treat mobile and manufactured homes the same as stick built homes.

There are any number of reasons to refinance your mobile home including:

• Consolidating debt
• Paying college tuition
• Even purchasing a car

As with any loan refinance you will be paying off your current loan with the new loan that will have better terms that should save you money each month.

The most important thing to look for in any refinance opportunity is a lower interest rate. This will lower your monthly payment and allow you to do other things with the extra money.

Another advantage of refinancing you may want to take advantage of is shortening the length of the loan. If you can easily afford your current monthly payment then by getting a lower interest rate you can pay off your loan more quickly.

If your mobile home is located in a mobile home park or on your own private land chances are good you can get financing for it.

The only difference may be laws and regulations that are specific to the state you live in because of the way in which mobile homes are built. Talking to your lender will help clear up any issues you need to be aware of when it comes to loans on these types of dwellings.

The costs associated with a mobile home refinance will be the same as any mortgage for a conventional home. There will be closing costs which can either be paid up front or rolled into the loan if paying them out of pocket is not an option. While rolling these costs into the overall loan is a good option to be aware that it will be subject to the interest you are paying on the loan.

Another way to save money over the life of the loan is to buy down the interest rate with points. Points are an up front fee that is paid to the lender with each point dependent on the overall loan amount. Most lenders base the amount their points are worth at one percent of the total loan amount. For each point bought the interest rate will drop one percentage point. Points are a good investment if you plan on owning your mobile home for a long period of time.

While there may be a few differences with mobile home refinancing for the most part, the process is identical to refinancing a traditional home. By working with your lender you will be able to come out with a loan that works best for you.

Author Resource: To learn more about mobile home refinancing please visit the website Home Equity Loans.

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Mortgage After Bankruptcy

By: Scot King

If you have had a recent bankruptcy or a foreclosure, and you are looking to buy a new home, or refinance an existing home, you’re in luck!

I have a handful of niche lenders who cater to this market.

My name’s Scot King, and I’m a licensed mortgage broker for Pacific West Capital here in California. My firm is approved with over 150 lenders many of which deal in subprime loans. In a nutshell it works as follows:

If you had bankruptcy discharged, either a Chapter 7 or a Chapter 13, in the last 12 months, and you know for a fact that your middle credit of the three credit reposotories (i.e. Experian, Transunion, and Equifax) is above 580, you may qualify for 100% financing, that’s right, that’s no money down financing!

You will be required to verify your income with documentation, and your housing payment history must be good for the last 12 months.

You must show that you have not been over 30 days late on any mortgage or rental payments. Proof of this is shown via cancelled checks front and back. If you rented from an apartment complex, a verification of rent (VOR) is usually acceptable.

If you had a private landlord, it gets a little more tricky. I have a lender who does not require any VOR but you do need to have a qualifying tradeline or two.

So, if you put everything into the Chapter 7 or Chapter 13, and didn’t maintain any accounts, we may need to use an alternative tradeline. This can be done if you have a cell phone bill, a utility bill, or a similar account which you know that you have always paid on time with for the last 12 months.

Again, this needs to be documented for the underwriter with either cancelled checks or possibly with a statement from the creditor showing a history of payments and when they were applied to your account.

The key to obtaining the no money down financing is your credit score.

It can be the very day after your bankruptcy has discharged as long as you have the score, which again is a 580 plus. After a bk discharge, it is common to see scores drop down into the 500s and sometimes below 500.

If you also had a foreclosure within the last twelve months, the no money down financing can still be done, but the pricing isn’t too pretty. You have to sort of take what you can get and get your foot in the door. As long as you make your payments on time for usually 2 years, depending on when your bankruptcy discharged, or when you had your foreclosure, you can refinance out of the loan into something better at a later time.

Another thing to keep in mind is that this is only for stick built homes, (i.e. single family residences, condos, townhouses, and modular homes) No Manufactured homes. The financing is accomplished either by doing one loan at 100% of the purchase price or with an 80/20 combo. The 80/20 usually beats the one loan by about 1% in interest and it goes to those individuals with the scores under 600.

If you are short on cash for closing costs, the seller may contribute up to 6% of the purchase price a credit towards your closing costs (non-recurring). It’s always good when you can come in with at least something of your own. Usually you will be required to do this for some of the prepaid expenses including interest, property taxes, and hazard insurance.

Author Resource: Scot King is a licensed mortgage broker in the state of California. His company is Pacific West Capital, and he has been originating mortgage loans nationwide since 1998. For more information, please see his site at Pacific West Capital

Article From RealEstateArticles4U.com

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Tips for Getting Bad Credit Home Loans

By: Steven Walters

Those of you looking to be homeowners, but in a bad credit situation there’s still hope.

Bad credit home loans are available and are offered every day to hundreds of potential home owners. Lenders know that sometimes bad things happen to good people and that we all need a helping hand at times. Even though the mortgage crisis in America has tightened lending practices, it’s still quite possible to get a bad credit home loan. And the good news for you is that applying for and being approved is pretty darn easy as long as your credit problems are past you.

Those with current credit problems will find it more difficult to get the home loan they’re looking for and may want to consider waiting for 6-12 months before applying for a bad credit home loan.

Any time you apply for any type of loan the biggest factor determining your acceptance and the terms of the loan is your credit score. This applies not just to a mortgage, but also to car loans, personal loans and even renting a new apartment. If you’ve had late payments in the past then it’s possible that, like many others, your credit score is not as strong as it could be.

Bad Credit Home Loans May Cost You More

Of course this will make it more difficult to get a loan, but it certainly doesn’t make it impossible. Those of you reading this that have had a late payment or a few know exactly what I mean. If you have some past credit problems you can still get a mortgage, but you may need to deal with a poor credit lender.

I hope that you’re aware you can get a home mortgage even with bad credit. The only difference between you and someone with a stronger credit score is that you’ll likely pay higher fees to get the loan and you’ll definitely get a higher interest rate. Getting approved for a bad credit home loan can be easy, but it will cost you more than a traditional loan.

Go Online to Find a Bad Credit Home Loan

If you want to start looking for a poor credit lender for your mortgage I suggest that you start online. You don’t need to go to the Yellow Pages these days, because you’ll find a greater variety of lenders online and you’ll have more choices. And you’ll also save valuable time when working with an online mortgage specialist. It’s just so much easier to go online rather than having to drive across town to meet with a loan officer in person.

Working with an Online Lender Can be Easier

Another positive to working with an online lender is that because the competition online is so big the lenders are willing to offer you the best possible terms on your bad credit mortgage. Your chances of getting approved are actually very good because these online lenders really want your business. And you can shop around and compare quotes since most of the online mortgage specialists will be more than happy to provide you with a free quote.

Thanks to the power of the internet it can be easy to get a bad credit home loan. You don’t have to worry that you’ll be denied for a mortgage anymore just because of past credit problems.

Online lenders are ready and willing to offer bad credit home loans.

Author Resource: Learn more about bad credit home loans and ways to do a bad credit refinance by visiting the authors website.

Article From RealEstateArticles4U.com

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Low Income Families Need Access To Cheap Loans

By: Abbi Rouse

The government needs to do more to provide consumers on low incomes with access to cheap loans, it was has been suggested.

Writing for the Guardian’s Society section, ex-work and Pensions Secretary David Blunkett and Kate Green, Chief Executive for the Child Poverty Action Group called on Labour to work together with the private sector to help the estimated three million Britons who cannot access mainstream credit.

Consequently, such borrowers are reported to be forced to opt for credit which carries high rates of interest, seek out loan sharks or look to the government’s social fund for financial help. Instead, the pair have claimed that politicians should collaborate with loan lenders to help provide affordable deals.

In the newspaper Mr Blunkett and Ms Green stated: “This could really turn things around - facilitating independence and offering a ladder away from home credit and most importantly, loan sharks, towards proper financial advice and guidance, opening a bank account and supporting a savings habit that enables and empowers, rather than spending money they don’t really have on sky high interest payments.”

“From the banks’ point of view, participation would help to full fill a significant social responsibility to poorer communities whom they presently offer little to - but it would also open up a new market with the security of government backing”.

“Today’s new ministers must grasp the mantle and make some real progress on this massively important issue - to extend to our poorest families the financial opportunities that so many of us take for granted”, the pair added.

They also declared that those on benefits borrow some 330 million pounds every year using home credit, with subsequent interest payments reported to account for some 140 million pounds.

Earlier this month, Helen Saxon from the Finance and Leasing Association (FLA) reported that consumer credit use is falling as the effect of base rate rises by the Bank of England over the last 12 months has seen borrowers put more of their monthly income towards making mortgage repayments.

However, she claimed that although Britons have tightened their belts in recent months and are spending less money on credit cards, personal loans and other forms of borrowing, credit has in the past proved to be largely beneficial for the majority of consumers.

Suggesting that when “used sensibly” borrowing can act as a “leveler”, the FLA representative suggested that it can give Britons the chance to purchase items they otherwise may not have been able to afford or have had to save up a long time to buy.

Ms Saxon added that, consequently, consumer credit has provided a boost to the British economy over recent years. However, she stated that credit providers should ensure that consumers will also be able to make repayments on their loans.

Meanwhile, James Falla, director of Thomas Charles, reported that although borrowing is starting to decrease consumers are still facing the “legacy” for steadily increasing their loan uptake over the last 20 years. “My concern would be all the borrowing that has already happened”, he suggested.

Author Resource: Abbi Rouse writes for 1 stop finance shop where visitors can apply for UK debt consolidation loans and also focuses on cheap personal loans and bad credit secured loans for UK residents.

Article From RealEstateArticles4U.com

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Shopping For Your Re-Financing

By: Paul Hata

Homeowners who are re-financing their home for the first or even the second or third time should thoroughly research all of the available options to ensure the best possible interest rate and terms are secured. Homeowners are sometimes lazy when it comes to re-financing.

There may a large drop in interest rates or a change in the financial situation which warrants a re-finance. Although the homeowner may be aware that a re-finance is warranted, the homeowner may not be aware that it sometimes takes a great deal of work to find the best possible rates and terms.

Homeowners are often inclined to re-finance with the same lender who granted the original mortgage or with the same lender who handled prior re-finances. The theory behind this reasoning is along the same lines as, “If it ain’t broke, don’t fix it.”

These homeowners figure their current mortgage is adequate and they are happy with the current lender so there is no need to investigate further options. However, this cavalier attitude can be quite costly for the homeowners.

Try All the Options
Homeowners who are considering re-financing their home should contact a number of lenders and obtain rate quotes from each of them. When soliciting quotes the homeowners should consider all of their available options but should limit these options to established lender.

While a newer lender may be offering fantastic rates and loan terms it is considered quite risky to go with this type of lender as opposed to a more established lender.

Homeowners who wish to further investigate smaller lenders who do not have an established history should proceed with caution. Unless the lender has trusted friends or family members who are willing to vouch for the lender, the homeowner should investigate these smaller lenders carefully.

Visiting a website address is not the best way to ensure credibility. Designing a professional looking website is a fairly simple process. Most website designers could design and upload such a website in less than a day.

Friendly Competition
When comparison shopping for the most favorable rates, homeowners should make it well known that they are shopping around for rate quotes and are not making a decision immediately.

Lenders who know they have some competition may be more likely to offer a lower interest rate than they would if they did not think the homeowner was considering other options. Although this may not seem quite fair to the lender, the business of re-financing is a competitive business.

Just like a plumber might offer his most competitive rate if he knows the homeowner is seeking estimates from a number of different plumbers, lenders are apt to do the same. They make their money from homeowners and having a homeowner re-finance their mortgage does not help them out at all financially.

Some lenders may think the homeowner is bluffing and may not offer the best rate initially. However, if the homeowner rejects the offer and states they have a better offer with another lender, the first lender may be enticed to offer an even lower interest rate just to see if they can sway the homeowners.

While cost is certainly important, it is not the only factor to consider. Some homeowners might re-finance with a lender who offers slightly higher rates if the homeowner feels as though this lender is more responsive to his needs.

Author Resource: 1000’s of Finance and Funding Services at: WorldFinancePages.com

Article From RealEstateArticles4U.com

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Information For Those Who Have Bad Credit And Need Loans

By: Ron Soran

The credit score is a very important judging factor when deciding whether a person qualifies for credit or not. In the US, the credit scores are recorded by three companies: Equifax, Experian and TransUnion.

All have their different parameters for coming up with credit scores.

However, the scores that they tag people with are generally the same. And, one more thing is common. If a person has a bad credit score, it becomes difficult for them to get any more credit.

So, do loans for people with bad credit exist or not?

The truth is that they do. But there are certain compromises to be made. Loans for people with bad credit are not as generous as those for people whose credit rating is healthy. They may have to pay a higher rate of interest than people with good credit, which may make the loans costlier for them.

In some cases, they will not get the kind of principal they have been hoping for. People with bad credit may also have to go for secured loans, in which they will have to keep some collateral with the finance providers so that they are more at peace with the amount they have lent.

Nowadays, there are many options for bad credit loans on the Internet.

Several online finance providers advertise that they give such loans. There is a screening and credit checking process involved, but the loans are given despite these checks. However, these loans are often available at higher rates of interest. People who have bad credit ratings feel that this is a way out for them to get some credit and hence they go ahead and apply for online bad credit loans.

The best way to look for credit if you have a bad financial record is to wait and improve your credit score. There are several ways in which you can do this.

The following are three simple methods that you can use:

1. Apply for a prepaid credit card, also known as a debit card. Pump this account with money and spend through this card. In some time, you will find your credit rating improving. You can give six months for your credit rating to improve.

2. Make your bill payments on time. With each bill payment that you make on a timely basis, your credit rating improves. Once again, six months worth of timely payments can improve your records.

3. Talk with your existing lenders for debt consolidation and debt refinancing options. If you get these benefits, you will be able to complete your loans faster and your credit rating will definitely improve.

Loans for people with bad credit are possible, but the best option is to wait for a few months and improve the financial health. This has long-term benefits because the rates of interest will be lower, which will reduce the monthly payments on the loans.

Author Resource: Ron tells people about personal loans for bad credit and personal loans for people with bad credit at his websites.

Article From RealEstateArticles4U.com

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Mortgage Questions to Ask Your Lender

By: Gerald Meyer

Buying and financing a home today can be overwhelming.

Here are some questions to ask your lender so that you can make informed decisions.

• Are both fixed-rate and adjustable mortgage loans available? What is the interest rate?
• How long can I “lock-in” the financing at the current interest rate?
• Is a float down lock available in case rates drop after I have locked in?
• What are the other fees a lender may charge me in conjunction with my loan?
• Are funds for a second mortgage available?

On Adjustable Rate Loans:

• How often will the interest rate be adjusted?
• Is there a maximum limit on each rate change?
• How often will the monthly payment be adjusted?
• Is there a ceiling on payment adjustments?
• Can the term of the loan be extended?
• What is the maximum rate that can be charged over the life of the loan?
• Is there any potential for negative amortization?
• Is there a pre-payment penalty clause?
• This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.
• What is the “grace” period? How late can a monthly payment be made before a late charge is assessed?
• What will happen if a payment is missed?
• If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
• Do you have to pay “points” to get your new mortgage? Usually lenders charge points for the cost of giving you a mortgage loan. A “point” is 1% of the loan.
• Will the lender require mortgage insurance?
• Is the loan serviced locally or is the servicing sold?

Ask for a written “Good Faith Deposit”.

Author Resource: Leanna Meyer is a Realtor with Re/Max Cross Country and can help you find Lewisville, Flower Mound, Lantana and Dallas Texas Real Estate.

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