Month: February 2009

A Good Mortgage Broker Can Prove To Be A Big Help To You

It pays to have a good mortgage broker on your side as they are the people that can help homeowners find the best home for their needs and in addition they can also prove to be an asset in case you are planning on investing in real estate. Fortunately, when it comes to sourcing a good mortgage broker there seems to be no shortage of them as they are available in all sizes and shapes and each also is sure to have a very unique personality as well.

Low Interest Rate Mortgage Loans

It may not be readily apparent but a good mortgage broker can make a considerable difference when you are trying to get a low interest rate mortgage loan and also in other real estate dealings as well. They ensure that the entire process of applying for and obtaining a mortgage loan passes off smoothly and without incident.

A mortgage broker is the right person to advise you regarding the entire process of getting your mortgage loan and so it helps if you understand just how it is possible to identify a good mortgage broker. The first thing you should understand is that common sense can play an important role in determining if a mortgage broker is a good person or not. Ideally, the broker should have a good nature and be willing to help you out in whatever way they can.

Another important factor that can help you determine whether a mortgage broker is right for you or not is their habit of being punctual. The more steadfast they are about time the better will be their attitude and service, because missed dates only add to frustration and cause a lot of infuriating moments that you can do without.

In addition, a good mortgage broker will also be able to list all the mortgages from memory and will not need to flip through their books to tell you the meaning of different terms as well as arrangements. They should also be ready and willing and able to answer all of your queries and questions. The more helpful they are the better will be their service to you.

Sometimes you may require availing of services offered by a commercial mortgage broker and the best way of locating a good one will certainly require that you start by checking out the bigger financial institutions as well as reputable commercial brokerage companies.

Hopefully, these tips on identifying a good mortgage broker will help you in identifying a company or individual that will provide you with the help that will enable you to get the best mortgage loan.

You might think a reverse mortgage is a relatively new invention by the lenders. They’ve actually been around for quite a while, but banks really didn’t push them and seniors didn’t understand them. Most seniors, remembering the depression and the weight of debt, really didn’t have an interest in accumulating more debt. Senior advocacy groups kept pushing for the banks to offer them, and those groups also helped seniors become educated to the advantage of a reverse mortgage. Now, it’s not a bit unusual to see or hear a commercial for a reverse mortgage.

One thing that a lot of folks don’t know though, is that prior to getting a reverse mortgage from a mortgage broker, the homeowner must have reverse mortgage counseling. This counseling prior to a reverse mortgage must be through an independent source for HUD counseling. Reverse mortgages are tricky for homeowners to understand especially both the pros and the cons, so this counseling is a good thing to have.

What Will I Learn?

In the reverse mortgage counseling, the goal is to be sure you understand what it is you’re getting when you buy a reverse mortgage. If you only listen to the broker, or to the commercials, you won’t know much at all there are many other things to understand.

For example, what does having a reverse mortgage mean to your heirs? If you don’t get a reverse mortgage, when you die your home can be inherited by whoever you will it to. They can choose to sell it, if they wish, and then divvy up all the proceeds of sale among your heirs as the will specifies. If you take out a reverse mortgage, you will be gradually increasing the amount of the loan you have against your home. Upon your death, the home is sold, the reverse mortgage is repaid immediately from the proceeds of sale, and the leftover money (if there is any) is divided among your heirs.

During reverse mortgage counseling, they will also be sure you really need a reverse mortgage that a reverse mortgage is the best choice in your situation. Do you really need one? What will you do with the money if you get it? Do you understand the high cost of the reverse mortgage loans? Can you afford to be using up your home’s equity already? The more you spend now, the less there will be later when you might truly need it for medical expenses or home repairs, etc. Are there less expensive options you should consider?

What’s The Difference?

There are differences between a reverse mortgage and a traditional mortgage and during reverse mortgage counseling they will cover these differences. The largest differences are 1) you don’t need any income or good credit to be able to get a reverse loan, and 2) there are no monthly repayments to make on a reverse mortgage.

There are also similarities. Both kinds of loans are ways of adding debt to your home. And both affect the amount of equity you have in your home. For many homeowners, that’s exactly what they want to do spend the equity in their home while they continue to live in it, and to not need to make any repayments. For them, a reverse mortgage is perfect. Counseling is only a formality.