| |
| |
|
Mortgage & Refinancing Information |
|
|
|
Reverse Mortgage Maximization
Have your home's appreciation grow twice as fast. For Seniors over the age of 62 a Reverse Mortgage is a tool that, while new to many, is increasingly being used to maximize their retirement income. A Reverse Mortgage frees up large amounts of equity to be used in investment vehicles, insurance policies, and savings plans that add to the safety and enjoyment of many seniors' lives. When a Reverse Mortgage is employed, it allows you to keep earning appreciation on the home, while also earning growth on the equity. Equity normally has no growth. Example: Two people A and B buy the same home for $200,000. Person A puts a down payment for $200,000 while Person B puts down $10,000 and invests the difference. In 5 years both homes are worth $250,000. Person A's equity experienced no growth while Person B invested the $190,000 not locked in the home and enjoyed 2 times the growth of Person A. Reverse Mortgages are a very safe way for seniors to release the equity trapped in their homes. A Reverse Mortgage is a Federally regulated and insured loan that uses home value and age as a calculator to extract a portion of the equity that Seniors have built in their homes. A good way to estimate the amount that can be received is to subtract the amount of purchase price and current mortgage from the estimated sale value. This is the equity that can be reasonably expected to be obtained with a Reverse Mortgage. Reverse Mortgage Nation provides a free online calculator. The differences between a Reverse Mortgage and a standard equity loan are that the Reverse Mortgage NEVER requires the Senior to make a monthly payment. For as long as the applicant lives in the home, there are no payments required. All of the money that is generated with a Reverse Mortgage is 100% tax-free and will not affect any social security or Medicare benefits. One generally overlook strategy in doing a Reverse Mortgage is managing the interest growth. The home is the only tax-beneficial financial investments in existence. If you earn a large return on a bond or in the stock market, you will experience taxes based on the size of your return. With a Reverse Mortgage, you pay zero tax for any money generated, and because Reverse Mortgages have no-prepayment-penalty, you can receive these funds tax-free, pay off the accrued interest for the year, then take additional tax-deductions on the interest that is accruing. All this with no risk of default or foreclosure because there are never any payments required. Troy Shellhammer is a Reverse Mortgage Loan Officer with Reverse Mortgage Nation (NGFS, a division of 1st Mariner Bank). He can provide illustrations and examples of these strategies for yourself, a friend, a client, or an elder parent.
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Where To Find The Best Rates For Your Mortgage? As with all of my articles this will be based on a scenario in my home town. (Which may be similar to yours). Sub-Prime Mortgage Loans - Things You Should Know About Sub-Prime Mortgages Sub-prime mortgages are not that much different from average mortgages. They have interest rates, points, and fees. The Zero Down 80/20 Mortgage This is an excellent loan for those that are lacking the down payment required for other types of mortgages.The 80 20 mortgage is simply two loans for 100% of the purchase price. Refinancing Your House - How to Know Whether to Refinance or get a Second Mortgage Refinancing your house's mortgage is not the same thing as getting a second mortgage. While both allow you to cash out your home's equity, terms and rates differ between the two types of loans. Mortgage Debt Elimination in 5 to 7 years! Mortgage Debt Elimination shows that most home loan debts will be secured. Secured debts usually are tied to an asset, like your house for a mortgage. How to Find the Best Home Improvement Loan If you're looking for the best home improvement loan for your money it can sometimes seem like an uphill climb. You may not know whether the offer that you've received is the best that you can get, or if you should try to find a better offer elsewhere? but you shouldn't let finding the best home improvement loan stress you out so badly. Benefits of a Remortgage There are many benefits in choosing a remortgage, some of which are listed below.A remortgage is changing your mortgage without moving your home. Home Loans and Mortgages - Watch Out for Dangerous Subprime Loans With the growing interest in real estate purchasing and speculation, more and more lenders are offering "nontraditional" types of mortgages. These include adjustable rate mortgages (ARM) of every shape and size, the more popular interest-only mortgage, and the very dangerous Option ARM mortgage, which can cause the amount you owe to actually increase as time passes. 6 Helpful Mortgage Tips Here are some mortgage tips that can help you obtain a mortgage with less hassle, and at a lower overall cost: Determine how much home you can afford. Based on your income and any long term debt, know the maximum payments you can be certain of making comfortably. Comparing The True Cost Of Obtaining A Home Loan Home buyers are often confused about where to begin in their search for a home loan. The process is usually narrowed down to finding which institutions provide the lowest settlement costs, but the different types of lending institutions and the variety of lending programs available can make the search a slow, difficult experience. Kings Bay Saint Marys & Kingsland Georgia Real Estate - Getting a Home Loan with Damaged Credit So, you have made the decision that you would like to become a homeowner. As lenders, we have to perform a credit check. Money Smart Homeowners Use this Mortgage Strategy Every Time There are currently more than 50 million home mortgages in the United States today. So why aren't more homeowners taking advantage of the highest yielding lowest risk, tax-free financial strategy available today?Let me ask you. How to Avoid Paying Mortgage Insurance In today's world, a borrower should not be paying mortgage insurance (PMI) on their home mortgage with a few exceptions such as an FHA loan. Mortgage Insurance is a thing of the past. Home Equity Loan - Not Just For Home Repairs, And Tax Deductible, Too! Thanks to the combination of low interest rates and skyrocketing property values, home equity loans are more popular than ever. The value of home equity loans taken out by Americans has doubled in the last two years, and the market for them shows no signs of slowing down. Stopping Foreclosures If you as an investor understand the process, you will be able to help more people!Foreclosure is tuff on folks it's all about losing!Your customer loses their home and the lender loses money!If you can get your focus going in the right direction, you can create a Win - Win scenario for all involved.Writer and philosopher Johann Wolfgang von Goethe said, "Kindness is the golden chain by which society is bound together. Home Loans -- Federal Regulators Warn Lenders to Be More Careful Federal banking regulators have recently expressed some concern over the housing market as home prices in the United States have risen to record levels. While homes are more unaffordable than ever for many people, the lending market remains strong, mostly because of the introduction of new, ever-more-flexible types of loans. Mortgage Soup Looking for home mortgage loans can get confusing with the alphabet soup of mortgage loans programs available today. Most of these programs are just variations of fixed rate and adjustable rate mortgage loans. Thought You Can Go All Alone In Mortgages! Mortgage Advice Beneficial In All Important Decisions Mortgages are easy as long as you understand them well. But how many borrowers can be confident of their knowledge of mortgages. How to Get the Best Mortgage This is a guide on how to get the best mortgage deal. Do not rush into the first offer that is made to you even if you are in a hurry for a mortgage. Home Loans: To Substantiate Financial Possibilities On Your Land Availability of Home loans is in full bloom. They are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners.
|
| home | site map |
| © 2006 |
