Reverse Mortgage Pitfalls - What You Need to Know

Reverse mortgages allow homeowners who at least 62 years old to take a loan using part of the equity of their homes as collateral, thus converting the equity into cash without having to sell their homes.

Generally, the homeowners after receiving the loaned amount from the lender will not have to pay as long as he or she lives in his or her home. The load is repaid once the house is sold generally after the homeowner dies or leaves the residence.

Reverse mortgages were designed to help cash-poor older citizens who already substantial equity in their homes but do not fully own them yet. The proceeds are generally tax free and are not subject to income restrictions.

We should be wary however of certain reverse mortgage pitfalls. By resorting to reverse mortgage, the homeowner should know that he or she might be giving up or spending the inheritance of his or her children.

While lenders seldom take the title of the property upon approval and release of the loan, it is usually repaid by selling the loan after the death of the homeowner, leaving the children with no home to inherit.

The next of many reverse mortgage pitfalls is the charges. The homeowner should also be aware that there are lots of charges of him or her to be able to avail of a reverse mortgage. Usually, there are initiation charges and appraisal, credit report, inspection and other fees which could total to more than a thousand dollars.

Still another of the many reverse mortgage pitfalls is the realities of old age. Elderly homeowners may not have the financial sense to handle and spend the sudden large cash flow from a reverse mortgage wisely. If not monitored properly, plenty of cash might go down the drain on unnecessary things and on things they need most.

Are you are looking for more information on Reverse Mortgages, then You need to read Reverse Mortgage Lenders: Senior Citizens Earning Money.

To read more about Mortgages Go to TopMortgageAdvice.com for all your Mortgage Advice.

Article Source: http://EzineArticles.com/?expert=Darryl_Power

How to Predict Mortgage Rates

Mortgage interest rates in U.S. have been swinging wildly in the past few months. There are clearly very important factors causing the swings. One obvious factor is federal reserve action. Another is consumer spending. Other factors include GDP or gross domestic product, consumer confidence and unemployment.

In the coming months, economists and industry leaders are expecting not-so-good mortgage rates predictions. They expect that mortgage rates continue to be volatile and quite unpredictable in the coming months. In this age of adjustable rate mortgages (ARM), this volatility is not something that the homeowner should be happy about.

The obvious key in mortgage rates predictions is to be fully aware of the most recent numbers regarding some of the more important factors affecting mortgage interests. These include federal and state actions, consumer spending and confidence, the gross domestic product and unemployment.

The numbers here will not lie and should guide the homeowner-borrower on what to mortgage rates to expect in the coming month or so. As in any other activity, planning is clearly an essential part in mortgage management. In planning, mortgage rates predictions should be considered.

Of course, to the ordinary homeowner may not be able to do the predictions themselves. It is likely also that they would not know of anyone who can do the analysis for them. They will have to go to learned hands or search for reliable sites on the internet.

What is important is that, homeowners should exert effort to get as much information as possible and to be aware of the more reliable mortgage rates predictions available on the net.

Are you are looking for more ways to save money with your mortgage loan, then You need to read Top 4 Steps to Refinancing a Mortgage.

To read more about Mortgages Go to TopMortgageAdvice.com for all your Mortgage Advice.

Article Source: http://EzineArticles.com/?expert=Darryl_Power

Compare Mortgage Lenders - Making the Right Choice

Compare Mortgage Lenders

Before making that big decision to refinance your home or purchase a new one with a good mortgage deal, it is always best to investigate and examine mortgage lending companies, their track record and current financial status. And while the interest rates and payment terms that are being offered are just as important, it is always best to work with mortgage lenders and financial institutions that your can trust and rely on.

Compare mortgage lenders based on the length of time that they have been in the business as well as the number of clients they currently have. Know their track records. Take notice of the banks that they do business with to make sure that they are stable lenders with stable banks to back them up.

Of course, as most people would first consider in choosing their lending companies, compare mortgage lenders based on the deals they offer. Most of the time it is not just good to check out which rates are more competitive.

Do not forget that there may be deals that are too good to be true but will turn out to be nightmares in the end. There are good online resources and mortgage calculators that allow you to compare mortgage deals effectively. Make sure that you avail of deals that are not only reasonable but are well within your financial capability to pay, after you have taken due notice of your regular expenses.

Get recommendations and testimonials. Scrounge around for feedback, both good and bad, on the mortgage companies that you are considering before closing a deal.

You need to read Part Two of Compare Mortgage Lenders before you decide on a Mortgage Lender.

For all your Online Mortgage Advice, Go to...TopMortgageAdvice.com

Article Source: http://EzineArticles.com/?expert=Darryl_Power