Month: February 2009

Important Reverse Mortgage Information

As we get older financial matters seem to get more complicated. If you feel like the bills are piling up or there are things that you find yourself sacrificing to get by; then you need to learn about reverse mortgage information. For many people an ethical reverse mortgage lender is a godsend when times get tough.

Unlike other loans there are no credit or employments assessments, the reason that many of us lose out on important loans. The best reverse mortgage information you could ever learn about is that you are being paid money, and you may never have to pay this money back.

Future Plans

There needs to be a little planning ahead, one piece of reverse mortgage information that is often omitted. While you do not have to pay off the money lent to you when you take out a reverse mortgage, you do need to pay it back in some way.

The conventional way to pay back a reverse mortgage is to use the proceeds from the sale of your home; this can be done when you move out or when you pass on.

However if your heirs would like to keep your home in the family then arrangements need to be made for repayment. This is important reverse mortgage information that requires discussion with all family members.

Previous Mortgage

Another important piece of reverse mortgage information concerns a previous mortgage. If you still have a mortgage on your house then it is necessary to use the money gained from your reverse mortgage to pay off your old mortgage.

Multiple Mortgages

If your home increases in value after you acquire a reverse mortgage then it is important to discuss multiple reverse mortgage information with a lender. It is possible to have a second or third reverse mortgage to take into account the increase in a home s value. However this option is not applicable to all homes and it is necessary to ask a local lender about this particular reverse mortgage information.

Low Fees

If you would like to acquire a reverse mortgage at a low rate then you should check that your local or state government offers this loan option. Often state controlled reverse mortgages have lower fees or no fee for this service.

Remember to check out several different lenders before settling on one particular lender. It is only possible to get the best reverse mortgage when you have all necessary reverse mortgage information and are aware of all options.

Time Is Critical: Foreclosure Help

There are many different ways in the faltering economy today to help stop foreclosure on an individual’s home. However, the only way to get foreclosure help is to work very closely with the mortgage company and foreclosure help agencies in order to help to solve the issue and hopefully keep the individual in his home. If individuals get scared and avoid the issue, thinking that there is nothing that can be done for them, that is usually going to be the case, since agencies cannot start to work on a solution to the problem if they are not fully aware of the particular situation that the individual is facing.

Steps to Take

One of the first steps to take when individuals know that they are going to miss a payment on their home is to contact the lender immediately. Often the lender can let the individual miss a payment for that month if the next month the individual thinks that he will be able to make a payment again. This is especially true if the individual has always been on time with payments. Even if this has not been the case, there is also at times a partial payment option for that month, with the full payment to be due the following month.

If the individual knows that the payment is not going to be able to be made for a couple of months, there is still foreclosure help available and it is critically important that he talks to the lender from the beginning of the time that he knows he is not going to be able to pay. For instance, if the individual has lost his job and is in search of another one, then there is often foreclosure help in terms of a special forbearance in which the mortgage company will allow him to go a couple of months without paying the mortgage in order to allow him time to obtain another job and then start to pay again.

There are some people who need foreclosure help because their mortgage was financed on an ARM loan, which means that the interest rate of the loan can climb a percentage point per year up to a certain height, usually five to eight points. This can be great for the individuals in the beginning but can cause increasing strain when the monthly mortgage gets to be out of their range for payment as the interest rates climb year after year. A foreclosure help option for these individuals is often to refinance the home at a lower rate of interest so that it is fixed and can no longer climb higher year by year.